With a market cap of $30.7 billion, Monolithic Power Systems, Inc. (MPWR) is a fabless global company, which provides semiconductor-based power electronic solutions. The Kirkland, Washington-based company designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets.
Companies valued at $10 billion or more are generally described as “large-cap” stocks and Monolithic Power Systems fits this criterion perfectly. The company to deliver reliable, compact, and monolithic solutions that are highly energy-efficient and cost-effective in the areas of semiconductor processes, system integration, and packaging.
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The chipmaker dipped 34.7% from its 52-week high of $959.64. Shares of Monolithic Power Systems is up 1.9% over the last three months, exceeding the 10.2% decline seen in the Technology Select Sector SPDR Fund (XLK).
In the long term, MPWR has gained 8.3% on a YTD basis, outpacing XLK’s 7.4% decrease. However, , shares of MPWR have slumped 6.7% over the past 52 weeks, lagging behind XLK’s 4.8% return over the same time frame.
Since mid-November the stock has been trading below its 200-day moving average and also despite some fluctuations it is now trading below its 50-day moving average as well.
Shares of MPWR rose 8.9% on the following day after its better-than-expected Q4 results on Feb. 6. The company topped the Wall Street expectations with revenue of $621.7 million and adjusted EPS of $4.09. The company’s growth was due to 51.2% surge in Enterprise Data sales and a 43% increase in Automotive revenue, that reflects a strong demand for AI-related power management and advanced driver assistance systems.
In contrast, rival Microchip Technology Incorporated (MCHP) fell behind MPWR. MCHP shares have decreased 37.7% in the last 52 weeks and also moved down 3.6% on a YTD basis.
Despite MPWR’s weak performance over the past year compared to its sector, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 14 analysts covering the stock, and as of writing, Monolithic Power Systems is trading below the mean price target of $833.92.