Monolithic Power Systems stock drops nearly 40% raising questions on its true value
From Nasdaq: 2024-11-18 09:48:00
Monolithic Power Systems (NASDAQ: MPWR) has seen a significant drop in value, losing over 39% since Oct. 29, now valued at nearly $28 billion. The market reaction raises questions about the company’s true intrinsic value and whether the drop is justified or an overreaction to recent news.
Monolithic designs power chips that regulate power in various semiconductor applications like enterprise data, storage, automotive, consumer, and industrial sectors. Despite recent market turmoil, the company plays a crucial role in the semiconductor industry by ensuring efficient power regulation in chips for optimal performance.
Monolithic faced challenges after its Q3 earnings report and reports suggesting potential order losses to power NVIDIA’s Blackwell chips due to technical performance issues. Despite these setbacks, Wall Street analysts have not significantly adjusted their price targets, indicating confidence in the company’s long-term prospects.
With other segments of Monolithic’s business rebounding, the drop in stock price presents a potential buying opportunity. The company’s diversified revenue streams and strong market presence make it a valuable player in the chip industry, despite recent setbacks. Shares may be undervalued, offering an opportunity for investors to capitalize on a discount in the market.
Read more at Nasdaq:: Is Monolithic Power Systems a Screaming Buy After Near 40% Drop?