Monolithic Power Systems has delivered 4 consecutive earnings beats, a wide economic moat, and 26% revenue growth, but trades at a forward price-to-earnings ratio of 54.8x that exceeds analyst targets, leaving the risk-reward unfavorable at current prices despite strong underlying business quality.
Thesis pillars
- Semiconductor Moat Growth→Stable
- Earnings Beat Execution↑Improving
- Rich Valuation Above Target↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Monolithic Power Systems, Inc. (MPWR) Stock Analysis
Breakout setup
Technology · Semiconductors
Wait for pullback to $1175.68. At $1367.43 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $1175.68 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Expensive valuation.
Monolithic Power Systems designs and sells fabless analog and mixed-signal power management ICs across storage/computing (26%), enterprise data (25%), automotive (21%), and other end markets, with 4,501 employees worldwide. The company generates revenue through distributors,... Read more
Wait for pullback to $1175.68. At $1367.43 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $1175.68 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Expensive valuation. Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Growth is outpacing valuation and the technical setup has confirmed a breakout above resistance (PEG 1.04, quality 8.3/10, growth 10.0/10). | Poor entry (EQ=3.5): wait for pullback. Score 6.5/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 34d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-09-25Recent Developments — Monolithic Power Systems, Inc.
Latest news
- NEWS Monolithic Power Systems Earnings: What To Look For From MPWR - Yahoo Finance — Yahoo Finance neutral
- NEWS Quantinno Capital Management LP Purchases 13,207 Shares of Monolithic Power Systems, Inc. $MPWR - MarketBeat — MarketBeat neutral
- NEWS Monolithic Power Systems Earnings: What To Look For From MPWR - StockStory — StockStory neutral
- NEWS Monolithic Power Systems Earnings: What To Look For From MPWR - Barchart.com — Barchart.com neutral
- NEWS Monolithic Power Systems Earnings: What To Look For From MPWR - The Globe and Mail — The Globe and Mail neutral
Generated 2026-09-25T23:46:58Z.
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $1175.68. At $1367.43 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $1175.68 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Expensive valuation. Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Growth is outpacing valuation and the technical setup has confirmed a breakout above resistance (PEG 1.04, quality 8.3/10, growth 10.0/10). | Poor entry (EQ=3.5): wait for pullback. Target $1655.82 (+21.1%), stop $1067.38 (−28.1%), A.R:R 1.4:1. Score 6.5/10, moderate confidence.
Take-profit target: $1655.82 (+21.1% upside). Target $1655.82 (+21.1%), stop $1067.38 (−28.1%), A.R:R 1.4:1. Stop-loss: $1067.38.
Sector modifier (Technology): -0.8; Expensive valuation; Entry quality score: 3.5/10.
Monolithic Power Systems, Inc. trades at a P/E of 82.6 (forward 38.3). TrendMatrix value score: 3.6/10. Verdict: Buy (Wait for Entry).
23 analysts cover MPWR with a consensus score of 4.1/5. Average price target: $1840.
What does Monolithic Power Systems, Inc. do?Monolithic Power Systems designs and sells fabless analog and mixed-signal power management ICs across...
Monolithic Power Systems designs and sells fabless analog and mixed-signal power management ICs across storage/computing (26%), enterprise data (25%), automotive (21%), and other end markets, with 4,501 employees worldwide. The company generates revenue through distributors, with 92% of sales to customers in Asia in 2025.