Monolithic Power Systems is a top semiconductor stock with strong performance and growth forecasts.
From Nasdaq: 2024-08-08 19:53:25
Stock market experiences late-summer volatility with S&P 500 oscillating between best and worst sessions in 2022. Tech sector sell-off poses challenges for semiconductor stocks despite AI advancements, giving rise to buying opportunities. Monolithic Power Systems stands out as a strong pick with diverse portfolio and uptrend in stock performance.
Monolithic Power Systems (MPWR) is a Washington-based semiconductor company with a market cap of $36.85 billion. Over the past 5 years, MPWR stock has gained over 400%, driven by innovative power management technologies. Current trading metrics show premium valuations but align with growth forecasts, making MPWR a sound investment in the semiconductor sector.
Strong Q2 results for MPWR exceeded analyst expectations with revenue reaching $507.4 million, a 15% jump from last year. Operating income rose to $116.5 million. Q3 revenue is projected to range between $590 million and $610 million. Analysts forecast annual EPS growth of 16.6% to $10.24 and revenue growth of 18.8% to $2.16 billion in fiscal year 2024.
Strategic partnership with Nvidia enhances MPWR’s position in the AI sector through advanced chip integration. Alliance will optimize power solutions for AI platforms, expanding reach in the semiconductor market. Analysts commend MPWR’s relationship with Nvidia, expecting continued gains in market share on new AI platforms.
Analysts bullish on MPWR following Q2 results, with upgraded price targets reflecting positive outlook. Oppenheimer maintains $900 target, Stifel reiterates $1,000, and KeyBanc raises target to a new Street-high of $1,075. Consensus “Strong Buy” rating reflects confidence in MPWR’s growth trajectory and favorable market positioning.
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