Is MPWR (Monolithic Power Systems, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MPWR is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (0.03% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (1.70% vs ≤33% threshold).

Monolithic Power Systems, Inc. (MPWR) is a technology company specializing in semiconductor-based power electronics solutions. It designs and sells direct current (DC) to DC integrated circuits that control voltages in everything from laptops and wireless access points to automotive infotainment systems and medical equipment. For Muslim investors using HalalStocks.co.uk, MPWR is a strong Halal stock pick, having passed all four AAOIFI screening criteria. The core business of manufacturing semiconductors is entirely permissible, and the company easily clears all financial hurdles, meaning your investment does not support prohibited industries or excessive leverage. From an Islamic finance perspective, MPWR boasts incredibly strong financials with a Debt/Market Cap ratio of precisely 0.0%, completely avoiding the pitfalls of interest-bearing debt. Additionally, its interest income is at 0.00% of revenue, ensuring that returns generated for shareholders are pure and untainted by riba. Because there is no scholarly debate surrounding the permissibility of standard semiconductor hardware, investors can hold MPWR with confidence. However, as with any tech stock, Muslim investors should periodically monitor its cash reserves and debt levels in future earnings reports to ensure it maintains its flawless compliance profile. Monolithic Power Systems, Inc. operates in the Technology sector under the Semiconductors industry and is headquartered in West Palm Beach, FL, US. The company is led by CEO Michael R. Hsing and employs approximately 4,017 people.

MPWR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. MPWR passed 4 of these 4 screens.

MPWR has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

MPWR was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.