Validea's Leading IT Stocks Inspired by Peter Lynch - August 18, 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
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Source: NASDAQ.COM
Top Rated IT Stocks: Validea's P/E/Growth Investor model highlights QUALCOMM INC, APPLIED MATERIALS INC, and FORTINET INC as top-rated stocks with a score of 91%, indicating strong interest based on their fundamentals and valuations.
Company Profiles: Qualcomm specializes in wireless technologies including 3G to 5G connectivity; Applied Materials provides equipment for semiconductor and display industries; Fortinet focuses on cybersecurity solutions integrating networking and security.
Other Notable Stocks: MONOLITHIC POWER SYSTEMS INC and SUPER MICRO COMPUTER INC received ratings of 74%, suggesting moderate interest according to the investment strategy.
About Peter Lynch: Renowned mutual fund manager Peter Lynch achieved significant returns with his common-sense investment approach, which is now utilized by Validea to analyze stocks based on his strategies.
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Analyst Views on MPWR
Wall Street analysts forecast MPWR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MPWR is 1200 USD with a low forecast of 950.00 USD and a high forecast of 1375 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 1161.780
Low
950.00
Averages
1200
High
1375
Current: 1161.780
Low
950.00
Averages
1200
High
1375
About MPWR
Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company design and develop its products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets. Direct Current (DC) to DC, Alternating Current (AC) to DC, driver metal-oxide-semiconductor field-effect transistor, power management integrated circuit (IC), current limit switch and lighting control products. Its DC to DC ICs are used to convert and control voltages within a range of electronic systems, such as cloud-based central processing unit (CPU) servers, server artificial intelligence (AI) applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, fourth generation (4G) and fifth generation (5G) infrastructure and satellite communications applications. The Company have sales offices in various locations in Asia, Europe and the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Semiconductor Market Dynamics
- Intel Earnings Disappointment: Intel (INTC) reported Q4 2025 revenue of $13.7 billion, down 4% year-over-year, with Q1 revenue guidance of $11.7-$12.7 billion falling short of expectations, leading to a significant stock price drop and negative investor sentiment.
- Coupang Data Breach Impact: Coupang (CPNG) faces regulatory scrutiny and class-action lawsuits due to a major data breach last year, and despite the overall Korean market rising 20%, the company's stock has suffered, raising concerns about its risk management capabilities.
- Astera Labs Strong Growth: Astera Labs reported record revenue of $230.6 million in Q3 2025, up 20% sequentially and 104% year-over-year, indicating robust demand in data center and AI applications, which enhances market confidence in its future growth.
- Monolithic Power Systems Strong Performance: Monolithic Power Systems (MPWR) achieved Q3 2025 revenue of $737.2 million, up 18.9% year-over-year, and raised its Q4 revenue guidance to $730-$750 million, reflecting strong growth across all end markets.
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Stifel Raises Price Targets for Semiconductor Stocks, Highlights Key 2026 Investment Themes
- Investment Themes Recommended: Stifel analysts recommend investors focus on three key themes, including 'hybrid' companies like MPWR, MTSI, and SITM, which have significant AI exposure while actively expanding in non-AI markets, expected to provide dual benefits for investors.
- AI Networking Solutions: Analysts highlight Astera Labs and Credo Technology as providers of differentiated system-level solutions, indicating a rising potential in the AI networking market that may attract more investor attention.
- Analog/Edge AI Development: Stifel emphasizes Analog Devices' strength in the high-end analog industry, along with Ambiq Micro and Silicon Laboratories' potential in Edge AI, which is expected to drive performance in rapidly growing markets such as medical and industrial.
- Price Target Adjustments: Analog Devices' price target is raised from $290 to $330, Microchip Technology from $80 to $90, and MACOM Technology Solutions from $185 to $215, reflecting analysts' strong optimism towards these companies.
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