Validea's Leading IT Stocks Inspired by Peter Lynch - August 18, 2025
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
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Analysis of SOXX ETF's 52-Week Price Range
- Price Range Analysis: The SOXX ETF has a 52-week low of $148.31 and a high of $365.38, with the latest trade at $358.20, indicating strong performance near its peak and reflecting ongoing market interest and investment enthusiasm in the semiconductor sector.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide investors with better market trend assessments; although specific 200-day moving average data is not provided, this method aids in evaluating the ETF's long-term trajectory.
- ETF Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell “units” that can be created or destroyed based on demand, thus impacting the underlying holdings and overall market liquidity.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which can affect the ETF's underlying asset allocation and influence investor decisions and market dynamics.
Citi Names Texas Instruments and Monolithic Power Systems as Top Picks
- Market Cycle Phase: Citi analyst Atif Malik noted that Texas Instruments (TXN) and Monolithic Power Systems (MPWR) have entered the 'Phase 2' of the cyclical framework, where stocks with product cycles or self-help stories are expected to outperform.
- Texas Instruments Outlook: As TXN approaches the end of its capital investment cycle, its gross margin is expected to expand further, with R&D investments focusing on the data center market, indicating strong growth potential.
- Monolithic Power Systems Growth: MPWR is expected to outpace industry growth, driven by enterprise data sales, with analyst projections indicating that data center-related sales will grow between 50% and 70% year-over-year in 2025, significantly exceeding the 6% growth of the analog and microcontroller industry.
- Future Projections: By 2026, revenue related to data centers and AI for analog companies is estimated to grow approximately 70% year-over-year, which could lead to multiple re-ratings for the sector as sales from the data center market are expected to exceed 25%.
From Aerospace to AI: Three Companies Boosting Dividends
Dividend Increases in Aerospace and AI: Major companies in aerospace and artificial intelligence are significantly increasing their dividends, with some raising them by over 25%, reflecting strong financial performance and growth in orders and backlogs.
GE Aerospace Performance: GE Aerospace reported a remarkable 32% increase in orders and a 21% revenue growth, ending the year with a substantial $190 billion backlog, driven by high demand for its commercial jet engines.
Monolithic Power Systems Growth: Monolithic Power Systems achieved a total return of 54% in 2025, with shares up 29% in 2026, and announced a 28% dividend increase, indicating strong performance across all its market segments.
Equinix's Dividend Strategy: Equinix plans to increase its dividends by 10% annually over the next five years, showcasing a commitment to returning capital to shareholders despite a challenging performance in 2025.
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
Monolithic Power Systems (MPWR.US) Officer Plans to Sell $38.84 Million in Common Stock via Form 144
Stock Sale Announcement: Michael Hsing intends to sell 34,000 shares of Monolithic Power Systems (MPWR) on February 10, with a total market value of approximately $38.84 million.
Reduction in Shareholding: Hsing has reduced his shareholding in Monolithic Power Systems by 124.92K shares since November 11, 2025, amounting to a total value of approximately $131.62 million.
Monolithic Power Systems Is on the Rise—Is Its Valuation Keeping Pace?
Stock Performance Overview: Over the past three months, Monolithic Power Systems (MPWR) has seen a significant stock increase of 26%, while competitors like NVIDIA and AMD have only seen minor fluctuations or declines.
Financial Results: Monolithic reported a revenue of $751 million for Q4 2025, marking a 21% increase from the previous year, and exceeded estimates, indicating strong financial health and growth potential.
Future Growth Expectations: The company anticipates revenue growth of over 22% for Q1 2026, driven by robust demand and a strong backlog of orders, particularly in the data center segment.
Market Position and Valuation: Despite high valuation concerns, Monolithic Power Systems remains a strong player in the semiconductor industry, with analysts suggesting potential for continued growth and investment opportunities.
Analysis of SOXX ETF's 52-Week Price Range
- Price Range Analysis: The SOXX ETF has a 52-week low of $148.31 and a high of $365.38, with the latest trade at $358.20, indicating strong performance near its peak and reflecting ongoing market interest and investment enthusiasm in the semiconductor sector.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide investors with better market trend assessments; although specific 200-day moving average data is not provided, this method aids in evaluating the ETF's long-term trajectory.
- ETF Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell “units” that can be created or destroyed based on demand, thus impacting the underlying holdings and overall market liquidity.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which can affect the ETF's underlying asset allocation and influence investor decisions and market dynamics.
Citi Names Texas Instruments and Monolithic Power Systems as Top Picks
- Market Cycle Phase: Citi analyst Atif Malik noted that Texas Instruments (TXN) and Monolithic Power Systems (MPWR) have entered the 'Phase 2' of the cyclical framework, where stocks with product cycles or self-help stories are expected to outperform.
- Texas Instruments Outlook: As TXN approaches the end of its capital investment cycle, its gross margin is expected to expand further, with R&D investments focusing on the data center market, indicating strong growth potential.
- Monolithic Power Systems Growth: MPWR is expected to outpace industry growth, driven by enterprise data sales, with analyst projections indicating that data center-related sales will grow between 50% and 70% year-over-year in 2025, significantly exceeding the 6% growth of the analog and microcontroller industry.
- Future Projections: By 2026, revenue related to data centers and AI for analog companies is estimated to grow approximately 70% year-over-year, which could lead to multiple re-ratings for the sector as sales from the data center market are expected to exceed 25%.
From Aerospace to AI: Three Companies Boosting Dividends
Dividend Increases in Aerospace and AI: Major companies in aerospace and artificial intelligence are significantly increasing their dividends, with some raising them by over 25%, reflecting strong financial performance and growth in orders and backlogs.
GE Aerospace Performance: GE Aerospace reported a remarkable 32% increase in orders and a 21% revenue growth, ending the year with a substantial $190 billion backlog, driven by high demand for its commercial jet engines.
Monolithic Power Systems Growth: Monolithic Power Systems achieved a total return of 54% in 2025, with shares up 29% in 2026, and announced a 28% dividend increase, indicating strong performance across all its market segments.
Equinix's Dividend Strategy: Equinix plans to increase its dividends by 10% annually over the next five years, showcasing a commitment to returning capital to shareholders despite a challenging performance in 2025.
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
Monolithic Power Systems (MPWR.US) Officer Plans to Sell $38.84 Million in Common Stock via Form 144
Stock Sale Announcement: Michael Hsing intends to sell 34,000 shares of Monolithic Power Systems (MPWR) on February 10, with a total market value of approximately $38.84 million.
Reduction in Shareholding: Hsing has reduced his shareholding in Monolithic Power Systems by 124.92K shares since November 11, 2025, amounting to a total value of approximately $131.62 million.
Monolithic Power Systems Is on the Rise—Is Its Valuation Keeping Pace?
Stock Performance Overview: Over the past three months, Monolithic Power Systems (MPWR) has seen a significant stock increase of 26%, while competitors like NVIDIA and AMD have only seen minor fluctuations or declines.
Financial Results: Monolithic reported a revenue of $751 million for Q4 2025, marking a 21% increase from the previous year, and exceeded estimates, indicating strong financial health and growth potential.
Future Growth Expectations: The company anticipates revenue growth of over 22% for Q1 2026, driven by robust demand and a strong backlog of orders, particularly in the data center segment.
Market Position and Valuation: Despite high valuation concerns, Monolithic Power Systems remains a strong player in the semiconductor industry, with analysts suggesting potential for continued growth and investment opportunities.
