Monolithic Power (MPWR) stock is set to join the Nasdaq-100 on Dec. 22, following its inclusion in the S&P 500 in 2021. With a market cap of $45.3 billion and a 60% YTD gain, MPWR is poised for passive flows from Nasdaq-100 ETFs like QQQ. The company focuses on power management integrated circuits and has seen steady financial growth, with Q3 2025 revenues up 18.9% YoY. Analysts rate MPWR stock as a “Strong Buy,” with a mean target price of $1,201, indicating a 26% upside potential.

Monolithic Power’s growth is driven by AI trends, with revenue and earnings CAGRs over the past decade at 23.52% and 49.53%. Q3 2025 revenue was $737.2 million, up 18.9% YoY, with strong growth across key segments. EPS was $4.73, beating estimates for the ninth consecutive quarter. The stock’s valuation is high, but analysts remain optimistic about its growth prospects. MPWR’s success is attributed to its technology, management strategy, and competitive advantages, though risks from cyclical markets and client concentration exist.

Read more at Barchart: Should You Buy Monolithic Power Stock Before Dec. 22?