Based on the provided data and recent market developments, MPWR appears to be overvalued at current levels. Here's the concise analysis:
The stock's current P/E ratio of 71.98x represents a significant premium compared to its 2022 level of 39.07x [Relevant Data].
MPWR recently lost approximately 50% market share in NVIDIA's upcoming Blackwell chips to Infineon Technologies, impacting a significant revenue stream.
The company's gross margin declined from 58.44% in 2022 to 56.07% in 2023, while net margin decreased from 24.39% to 23.47% [Relevant Data].
Despite recent price recovery of 18% in early 2025, the stock trades at elevated multiples with EV/EBITDA of 55.62x, significantly higher than the 2022 level of 27.73x.
Technical indicators show RSI at 56.95 and trading above its 20-day moving average, suggesting the stock is neither oversold nor presenting a compelling entry point [Relevant Data].