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Monolithic Power Systems Inc MPWR Stock Quote

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Morningstar‘s Stock Analysis MPWR

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Is it the right time to buy or sell?

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Demand Softens for Monolithic Power Systems, but We Remain Confident of Growth in 2023 and Beyond

Analyst Note

| William Kerwin |

We maintain our $562 fair value estimate for wide-moat Monolithic Power Systems after the company reported another strong quarter but provided guidance below our expectations. MPS is seeing the effects of broadly softer macroeconomic demand, particularly in its consumer market and the notebook portion of its computing market. Our long-term growth thesis for MPS is intact, and we continue to view the shares as deeply undervalued. We expect MPS to be able to offset pockets of weakness with strong performance in areas like data centers and automotive. We have already modeled a growth deceleration in 2023, but we continue to expect double-digit growth and gross margin expansion through the year. We think the 9% pullback for the stock after hours ignores MPS’ long-term opportunities and overemphasizes short-term incremental weakness.

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Key Statistics MPWR

Company Profile MPWR

Business Description

Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm’s mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.

5808 Lake Washington Boulevard NE
Kirkland, WA, 98033
T +1 425 296-9956
Industry Semiconductors
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 2,700