Monolithic Power Systems MPWR
Designs and sells power management integrated circuits for electronics, automotive, and AI data centers. Monolithic Power Systems shows exceptional growth (revenue +47.6%, earnings +85.8%) and solid financial health with net cash, but its valuation is extremely demanding (P/E 83.33), making it vulnerable to a rising interest rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Designs and sells power management integrated circuits for electronics, automotive, and AI data centers. Monolithic Power Systems shows exceptional growth (revenue +47.6%, earnings +85.8%) and solid financial health with net cash, but its valuation is extremely demanding (P/E 83.33), making it vulnerable to a rising interest rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.4 |
| Quality / Moat | 7.6 |
| Valuation | 2.7 |
| Growth | 7.5 |
| Dividend | 5.4 |
| Momentum | 7.3 |
| Risk & Context | 2.7 |
OVERALL SCORE: 5.8/10
Context and risks
The rise in 10-year Treasury yields (5.17%) pressures MPWR's valuation, which trades at a P/E of 83.33, given that a significant portion of its value resides in distant future cash flows. This is a duration risk, not an operational one.
News considered in the analysis
- Monolithic Power Stock Jumped 8% to $1,380. Its Foundry Deal Is Why the Run Could Hold — El acuerdo con una fundición asegura capacidad de suministro para la creciente demanda de IA, un factor material para el crecimiento futuro.
- FormFactor, Kulicke and Soffa, Monolithic Power Systems, Micron, and Seagate Stocks Trade Up, What You Need To Know — El movimiento alcista del sector de semiconductores refleja el optimismo general, pero no es información específica de la empresa.
- 2 of Wall Street’s Favorite Stocks for Long-Term Investors and 1 We Avoid — Listículo genérico sin información nueva sobre la empresa.
- US Stock Market Today S&P 500 Futures Steady As Rate Jitters Meet Softer Oil — Ruido de mercado sin impacto directo en los fundamentales de MPWR.
- Is Vicor Stock Worth Buying Before Its Second Fab Exists? — Noticia sobre un competidor, sin impacto directo en MPWR.
Verdict: Hold, but with caution: growth is real, but the valuation leaves little room for error if rates continue to rise.
Main risk: The main risk is the extreme valuation (P/E 83.33) in a rising interest rate environment, which could compress the multiple if growth fails to meet expectations.
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