Stock Price & Analysis

Analysis and Insights

Technical Analysis:

MPWR's stock has shown significant volatility recently, with a pre-market increase of 2.68% and a regular market rise of 6.48%, closing at $629.27. The RSI_14 of 44.55 indicates the stock is not oversold, but the MACD is negative, suggesting a bearish trend. The stock is currently trading above its 20-day SMA but below its 50-day SMA, indicating short-term weakness.

Valuation Analysis:

MPWR's valuation metrics show a P/E ratio of 44.23 and a forward P/E of 35.37, indicating a premium valuation. The stock's P/FCF of 32.56 suggests strong cash flow generation, but investors should consider whether growth justifies the current price.

Recent News and Events:

• Revenue Guidance Increase: MPWR raised its Q1 2025 revenue guidance to $630-640 million, driven by strong demand for AI power solutions and new products.
• Analyst Ratings: Oppenheimer maintains a Buy rating with an $800 target, while Wells Fargo is more cautious with a lower target.
• Class Action Lawsuit: A securities fraud lawsuit was filed, alleging issues with products supplied to Nvidia, which could impact investor sentiment.

Market Trends:

The market is shifting towards low-volatility and defensive sectors, which could impact high-growth tech stocks. However, MPWR is noted as a value pick due to multiple compression, making it attractive for investors seeking undervalued stocks.

Conclusion:

MPWR presents a mixed outlook. Strong revenue growth and positive analyst sentiment are encouraging, but technical indicators and market trends suggest caution. The stock might be a good buy for value seekers, but the current volatility and lawsuit risk should be carefully considered.

The price prediction for MPWR stock in 2025 is expected to reach $700, driven by strong Q1 guidance and growing demand in AI and automotive sectors. However, risks like high valuations and market shifts could impact growth.

The S1 support level for MPWR Stock is $565.67 ,The R1 resistant level for MPWR Stock is $641.21.

As of the end of day on 2025-04-01, the price of MPWR Stock was $582.29.

The target price for MPWR Stock according to analyst rating is 818.50, with the highest price target at 1,100 and the lowest at 710.00. Analysts have a Strong Buy rating on MPWR Stock overall.

The market cap of MPWR is $27.8B.

MPWR is likely overvalued based on its high valuation metrics. Its PE ratio of 104 and EV/EBITDA of 16.17 exceed industry averages, indicating a premium price. The stock's PS ratio of 19.18 is also elevated, suggesting investors are pricing in high growth expectations. While revenue growth is strong at 48% year-over-year, the current valuation may not be sustainable if growth slows. The stock's high multiples relative to fundamentals suggest it is overvalued at current levels.

Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company designs and develops its products for the storage and computing, enterprise data, automotive, industrial, communications and consumer markets. Its key product families include Direct Current (DC) to DC Products and Lighting Control Products. Its DC to DC integrated circuits (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. Its lighting control ICs are used in backlighting and general illumination products. Its lighting control ICs for backlighting are used in systems that provide the light source for LCD panels.

Price Prediction for MPWR Stock by 2030

Based on current trends and analysis, MPWR stock is predicted to reach $1,200 by 2030. This forecast is supported by the company's strong financial performance, including a 21.2% year-over-year revenue increase in 2024, and its expansion into high-growth markets like AI and automotive solutions. Analysts have also raised their price targets, with recent adjustments to $897 and $850, indicating confidence in the stock's potential.

MPWR has a total of 3564 employees.