Is Monolithic Power Systems, Inc. MPWR stock halal to invest in?

Yes, as of August 2026, Monolithic Power Systems, Inc. stock (MPWR) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Monolithic Power Systems, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.02%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Monolithic Power Systems, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Monolithic Power Systems, Inc. MPWR reviewed for Shariah compliance?

Tabadulat reviews Monolithic Power Systems, Inc. MPWR for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Monolithic Power Systems, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Monolithic Power Systems, Inc. stock (MPWR) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Monolithic Power Systems, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Monolithic Power Systems, Inc. stock (MPWR) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Monolithic Power Systems, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Monolithic Power Systems, Inc. stock (MPWR) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Monolithic Power Systems, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Monolithic Power Systems, Inc. MPWR stock?

As of August 2026, the dividend purification factor for Monolithic Power Systems, Inc. (MPWR) is 99.02%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Monolithic Power Systems, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Monolithic Power Systems, Inc. stock (MPWR) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Monolithic Power Systems, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Monolithic Power Systems, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

MPWR

About

Monolithic Power Systems, Inc.

MPWR

Monolithic Power Systems, Inc. is a leading semiconductor company specializing in the design, development, and marketing of high-performance power electronics solutions. The company's core products include integrated circuits for power management, DC-DC converters, AC-DC solutions, motor drivers, and lighting control systems. These advanced components are vital for a broad range of applications spanning cloud computing, data storage, automotive electronics, industrial automation, telecommunications infrastructure, and consumer electronics. Founded in 1997 and headquartered in Kirkland, Washington, Monolithic Power Systems pioneers monolithic integration, enabling efficient, compact, and highly reliable power solutions. Renowned for its proprietary technology and focus on integration, the company aims to deliver products that are smaller, more energy-efficient, and cost-effective compared to many competitors. Monolithic Power Systems' solutions underpin critical technological advancements across international markets, contributing to improved energy efficiency and performance in next-generation electronic devices and systems.

Sector:

Technology

Industry:

Semiconductors

Employees:

4017

Website:

https://www.monolithicpower.com

MPWR

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Monolithic Power Systems, Inc.

About

Monolithic Power Systems, Inc.

MPWR

Frequently asked questions

Is Monolithic Power Systems, Inc. MPWR stock halal to invest in?

How often is Monolithic Power Systems, Inc. MPWR reviewed for Shariah compliance?

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Non Permissible Income criteria?

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Interest Bearing Investments criteria?

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Monolithic Power Systems, Inc. MPWR stock?

Does Monolithic Power Systems, Inc. MPWR pass the AAOIFI Preference Share screen?

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