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Friday - Monolithic Power Systems (NASDAQ:MPWR), a company that InvestingPro data shows maintains excellent financial health with a current ratio of 5.31, maintains its Overweight rating and $850.00 price target from KeyBanc analysts following an analyst event. The stock currently trades below its Fair Value, according to InvestingPro’s comprehensive analysis. The company raised its first-quarter revenue guidance to $635 million, up from the previously estimated $620 million. This follows an impressive 21.2% revenue growth in the last twelve months. Monolithic Power Systems’ long-term model continues to project revenue growth to outpace the market by 15-20% with gross margins between 55-60%, aligned with their current gross margin of 55.3%.
During the event, the company emphasized its key market segments, which include data centers, automotive, and battery management. Despite these positive indicators, the company did not provide updates on regaining market share with its Blackwell Ultra product at NVIDIA (NASDAQ:NVDA), as visibility into the second half of the year remains unclear.
KeyBanc analysts noted their encouragement with the progress and updates shared during the analyst event. However, they also expressed caution due to the ongoing uncertainty surrounding the Blackwell Ultra product, which might result in the stock’s near-term performance being constrained.
The reaffirmed Overweight rating by KeyBanc suggests confidence in Monolithic Power Systems’ long-term fundamentals. The analysts’ outlook remains positive, backed by the company’s ability to exceed market growth expectations and maintain robust gross margins. With 15 analysts recently revising earnings estimates upward and a strong consensus recommendation of 1.65, the company shows promising potential despite near-term uncertainties. For deeper insights into MPWR’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with comprehensive analysis and actionable intelligence.
In other recent news, Monolithic Power Systems announced a revision of its first-quarter 2025 revenue guidance, increasing the range to $630.0 million to $640.0 million, up from the previously forecasted $610.0 million to $630.0 million. This update suggests a stronger-than-expected performance for the quarter. Additionally, the company reported that its GAAP operating expenses are expected to be between $184.9 million and $190.9 million, with non-GAAP operating expenses projected between $131.6 million and $135.6 million.
Monolithic Power Systems also held an Analyst Day event, where they emphasized potential growth in various business verticals beyond those currently contributing half of its business. Stifel analysts maintained a Buy rating with a $1,100 price target, expressing confidence in the company’s innovative strategies and market position. Meanwhile, Rosenblatt Securities adjusted their price target for the company to $750, maintaining a Neutral rating, citing the need for precise execution in AI-related aspects for future success.
Citi also reiterated a Buy rating with an $800 price target, highlighting Monolithic Power’s strategic focus on non-AI markets like Automotive and Industrial, which are expected to drive growth. The company’s commitment to innovation and expansion into new markets was a focal point during these discussions, reflecting its ongoing strategy to outpace market growth by 10-15%. These developments indicate a positive outlook for Monolithic Power Systems, despite some challenges in the Enterprise Data segment.
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