Monolithic Power Systems (MPWR) Stock

Since hitting record highs last year, Monolithic Power Systems (MPWR) shares have dropped over 30% following the company's last earnings report in late October. Despite this decline, analysts continue to have a positive outlook on the stock.

Monolithic Power Systems presents a good buying chance following a price drop caused by overblown worries about share losses and disappointing Q3 2024 results. The company's cutting-edge power management solutions and fabless approach are helping it gain market share, especially in the automotive and data center industries. Even with competition, MPWR's effective solutions and adaptable structure set it up for ongoing growth, and the CEO is optimistic about the outlook for 2025.

I recommend a balanced investment strategy that includes 50% short-term U.S. Treasuries, 10% gold, and 40% low-risk dividend stocks to protect wealth from geopolitical risks. Monolithic Power Systems has the potential for a 15% annual growth rate over the next five years, thanks to its strong business model, although it does face some risks related to TSMC and Nvidia. My analysis shows a 7% safety margin and an estimated company value of $54.34 billion by December 2029, making it a good fit for growth portfolios despite the challenges in the semiconductor industry.

The stock has increased by 3.9% and reached a new high.

Monolithic Power Systems, listed on NASDAQ as MPWR, is a chip company that doesn't get as much attention as others in the field, such as NVIDIA (NASDAQ: NVDA) or Taiwan Semiconductor Manufacturing (NYSE: TSM). However, this doesn't imply that the company hasn't achieved significant success over the years.

On Wednesday, the main U.S. stock market indexes showed mixed results and did not change much.

Both companies' shares were declining following reports from the market research firm Edgewater Research.

MPWR has announced impressive results for the third quarter of 2024, supported by strong growth across all sectors.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) will hold its Q3 2024 Earnings Conference Call on October 30, 2024, at 5:00 PM ET. The call will feature several company leaders, including Genevieve Cunningham, who will moderate the session, along with Bernie Blegen, Michael Hsing, and Tony Balow. Participants from various financial firms will also join the discussion.