With a market cap of $30.7 billion, Monolithic Power Systems, Inc. (MPWR) is a fabless global company, which provides semiconductor-based power electronic solutions. The Kirkland, Washington-based company designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets.
Companies valued at $10 billion or more are generally described as “large-cap” stocks and Monolithic Power Systems fits this criterion perfectly. The company to deliver reliable, compact, and monolithic solutions that are highly energy-efficient and cost-effective in the areas of semiconductor processes, system integration, and packaging.
The chipmaker dipped 34.7% from its 52-week high of $959.64. Shares of Monolithic Power Systems is up 1.9% over the last three months, exceeding the 10.2% decline seen in the Technology Select Sector SPDR Fund (XLK).
In the long term, MPWR has gained 8.3% on a YTD basis, outpacing XLK’s 7.4% decrease. However, , shares of MPWR have slumped 6.7% over the past 52 weeks, lagging behind XLK’s 4.8% return over the same time frame.
Since mid-November the stock has been trading below its 200-day moving average and also despite some fluctuations it is now trading below its 50-day moving average as well.
Shares of MPWR rose 8.9% on the following day after its better-than-expected Q4 results on Feb. 6. The company topped the Wall Street expectations with revenue of $621.7 million and adjusted EPS of $4.09. The company’s growth was due to 51.2% surge in Enterprise Data sales and a 43% increase in Automotive revenue, that reflects a strong demand for AI-related power management and advanced driver assistance systems.
In contrast, rival Microchip Technology Incorporated (MCHP) fell behind MPWR. MCHP shares have decreased 37.7% in the last 52 weeks and also moved down 3.6% on a YTD basis.
Despite MPWR’s weak performance over the past year compared to its sector, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 14 analysts covering the stock, and as of writing, Monolithic Power Systems is trading below the mean price target of $833.92.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
