
MPWR Stock Forecast & Price Target
MPWR Analyst Ratings
Bulls say
Monolithic Power Systems reported robust Q4 growth, driven by its diversified market strategy, particularly in the automotive and communications sectors, which reflects the successful impact of long-term design wins. The company aims to achieve a growth rate that is 10-15 percentage points higher than the overall analog integrated circuit market, positioning itself as a leader in the rapidly expanding analog segment. With anticipated improvements in gross margins to 55-58% and operating margins exceeding 30%, alongside a consistent increase in earnings per share, Monolithic Power Systems demonstrates strong financial health and significant potential for sustained growth.
Bears say
Monolithic Power Systems has demonstrated a slight decline in internal inventories, resting at $419.6 million in Q4, which may signal incoming revenue challenges tied to an anticipated slowdown in Enterprise Data revenue due to diminished market share with its primary AI customer. The company's potential inability to meet growth projections of 15-20%, alongside a lagging product ramp that could erode margins, raises concerns about sustaining profitability amid escalating competition. Furthermore, the industrial revenue decline of 7% quarter-over-quarter suggests a weakening demand for its products, intensifying the risk of downward adjustments to future revenue forecasts.
This aggregate rating is based on analysts' research of Monolithic Power Systems and is not a guaranteed prediction by Public.com or investment advice.
MPWR Analyst Forecast & Price Prediction
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