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↓Deteriorating
- Earnings Beat Execution↓Deteriorating
- Rich Valuation Above Target→Stable
- +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 $1399.24. At $1402.00 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $1399.24 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: 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 $1399.24. At $1402.00 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $1399.24 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Expensive valuation. Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. V9 Gate blocked: R/R 1.1x at spot < 1.5 minimum. Wait for improvement. Score 6.7/10, moderate confidence.
Passes 8/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 76d clear, semi cycle peak clear, materials cycle peak clear, sector concentration cap sector=technology 8/10). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-08-15Recent 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 2026-08-15T09:37:16Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
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 $1399.24. At $1402.00 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $1399.24 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Expensive valuation. Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. V9 Gate blocked: R/R 1.1x at spot < 1.5 minimum. Wait for improvement. Target $1591.70 (+13.5%), stop $1221.75 (−14.8%), A.R:R 1.1:1. Score 6.7/10, moderate confidence.
Take-profit target: $1591.70 (+13.5% upside). Target $1591.70 (+13.5%), stop $1221.75 (−14.8%), A.R:R 1.1:1. Stop-loss: $1221.75.
Expensive valuation.
Monolithic Power Systems, Inc. trades at a P/E of 87.0 (forward 39.2). TrendMatrix value score: 3.0/10. Verdict: Buy (Wait for Entry).
23 analysts cover MPWR with a consensus score of 4.1/5. Average price target: $1830.
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.