“Let me get this straight. You haven’t been doing these live chats… live?”
This was the final question yours truly would ever pose to a human support person. Nine months ago, I realized our main customer service “live chat” agent for my software company wasn’t doing his job in real time.
He would log on twice a day and bang out second-rate replies to the messages that had accrued via our website. Rinse and repeat. He had a good gig going until I dropped in.
My original plans were to replace him with another support person. Instead, I spent a few hours the following weekend “training” an AI model to handle customer service replies.
The rest is history—we didn’t have to interview anyone. “The support machine” was superior in every way. It delivered instant, thoughtful replies. Customer support is perfect for AI tools because all it needs to “learn” are written conversations and documents, which the applications can absorb quickly.
Our “bottom line” cost savings? We banked 95%!
Customer support isn’t the only job being swapped out for machines these days. Microsoft has figured out that salespeople aren’t exactly original thinkers either. The software giant is laying them off by the thousands and replacing them with AI software.
Tech companies across the board are replacing human workers with AI, and the trend is accelerating. Amazon CEO Andy Jassy bluntly stated: human jobs are disappearing because AI is cheaper and smarter.
Jassy openly admitted the Amazon workforce will “need fewer people doing some of the jobs that are being done today.” He even projected that over the next few years, Amazon’s total corporate workforce will shrink.
Amazon is now urging its employees to become proficient in using AI tools and agents, aiming to augment their roles. But let’s be honest here: employees may very well be training these AI tools to replace themselves!
It’s an uneasy moment for middle management and white-collar workers, but if you’re a shareholder—or if you’re Andy Jassy himself—this is exciting news. I mean, Jassy could hardly conceal his enthusiasm as he described this seismic shift from expensive humans towards cheaper machines. (Think of his stock options—he certainly is!)
Bottom line: the AI-driven transformation is unstoppable, and it’s only just getting started.
Now, there are hidden bottom-line costs to the AI boom—electricity demand and specialized hardware. ChatGPT alone already burns through enough electricity every year to power 20,000 American homes. And AI’s electricity usage is set to double every two or three years.
AI infrastructure investment is also booming. NVIDIA’s GPU shipments have doubled or tripled every few years due to soaring AI demand, which shows no sign of slowing.
Today’s massive AI data centers are sci-fi movie sets with giant racks of supercharged processors that hum and glow, working overtime to crunch vast amounts of data. Yet most of these facilities are dedicated to cooling the servers’ powerful processors that run blisteringly hot. Cooling isn’t just a comfort issue; it’s critical. Chips that overheat slow down or even fail, causing expensive outages.
The critical player behind AI’s explosive growth? Monolithic Power Systems (MPWR)—the indispensable power regulator. Its specialized chips precisely regulate electricity flow, keeping AI processors running coolly, efficiently, and reliably. Without MPWR’s innovative tech, the AI-driven world we’re racing towards wouldn’t just slow down—it could grind to a halt!
MPWR’s dividend track record puts most other AI plays—and frankly, most dividend payers—to shame. This company has increased its dividend by 25% annually since it started. Most vanilla investors overlook MPWR’s modest 0.9% yield. They miss the real power: a dividend doubling every three years.
Here’s how we effortlessly make money: buy MPWR any time its stock price (orange line) lags its soaring dividend (purple line). The price always catches up:
A New “Buy” Signal in MPWR
This is the power of the dividend magnet, the safest and surest way to stock profits. Over time, stock prices always follow their payouts (for better or for worse!). So, we love stocks like MPWR with ballooning dividends because we can’t help but make money!
The company is a cash cow. Because MPWR is the design wizard that hands off its solutions to other companies to manufacture, it’s highly profitable, boasting gross margins above 55%—almost unheard of in the semiconductor business.
And there’s plenty of runway left. With a modest 14% payout ratio, MPWR is assured to power dividend hikes. Imagine the fattening dividend with a payout ratio of 40–50% or more, even without the massive boost from growing revenue and profits!
About that revenue growth. In the past decade, MPWR’s revenues soared 672%, dividends surged 680%, and the stock price multiplied over 1,300%—thanks to sustainable breakneck growth:
A Sales-Driven Dividend
Revenue growth isn’t just holding steady—it’s cookin’! MPWR has recently secured significant new design wins, notably with Nvidia’s latest AI-centric GPUs (like the Blackwell and H100 series). These cutting-edge chips are popping up everywhere, powering AI servers and data centers around the globe, and each one requires specialized, highly efficient power management.
Moreover, MPWR is smartly expanding beyond traditional computing applications. Whether its automotive makers scrambling to electrify their vehicle fleets, telecom providers upgrading infrastructure for faster connectivity, and hyperscale data centers growing at breakneck speed—all rely on Monolithic’s precision-engineered chips. These new verticals make revenues rocket!
Finally, thanks to MPWR’s lean, fabless business model, it can scale quickly without heavy capital spending. As demand surges, Monolithic isn’t bogged down by factory expansions—it simply designs more solutions for partners who ramp up production (“we’ve got people for that”). The result: revenue swells, cash flow escalates, dividends propagate, and the stock price? You got it!
Bottom line: MPWR isn’t just riding the AI wave—it’s powering it. With high profitability, accelerating sales growth and a safe yet fast-growing dividend, Monolithic Power Systems is an ideal Hidden Yields stock. And it was our official June recommendation.
Our Hidden Yields subscribers have already enjoyed 10% gains from MPWR in less than four weeks. These returns annualize to a hefty 187%.
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