MPWR is a top holding due to fabless efficiency and growth in data center/robotics themes; expected to benefit from Nvidia Vera Rubin ramp-up.

Infineon perhaps its closest and largest peer and the fabless company Monolithic Power.

The reason why I'm showing it is we own both On Semiconductor and Monolithic Power, and obviously Monolithic Power has far and away been the better performer.

It's actually become our largest position within the power semiconductor and related analog semiconductor market, addressing data centers, automotive, robotics, always a popular theme right at the moment.

And the reason for that outperformance I would say boils down to one primary thing. As we've talked about numerous times over the years, Monolithic Power is a fabless chip designer.

Some of their end markets that they participate in have also been very difficult, automotive and industrial end markets. Monolithic Power doesn't have to deal with that. They outsource all of their fabrication, especially to partners in Southeast Asia and Taiwan.

What they're left with managing is things like stock-based compensation for their engineering teams. But they're a move fast organization. They've been able to manage those employee-related and stock-based expenses really well and have gotten themselves in position for multiple secular growth themes.

In recent years, there was another growth spurt from providing power modules for memory and storage servers in the data center, and we're gearing up for another growth run with Nvidia's Vera Rubin platform.

And so you might be asking, well, why not just go all in on Monolithic Power? When we first started covering Monolithic Power seven years ago, yes, obviously in hindsight, that would have been the best bet.

Hindsight is always 2020 though. In 2019, 2020, there was less indication at that time that Monolithic Power was going to be the massive market outperformer that it has become.

In the meantime, Monolithic Power has become our top position. It's earned that spot and we'll do more updates on that, probably before year-end after we have some more earnings data and some updates on how they are benefiting from the ramp-up of Vera Rubin, from memory and storage servers in the data center, and lots of other great stuff that has made that a hypergrowth business in the semiconductor world.