Opinions The Panic-Proof Portfolio (Stockchase Research)
Monolithic Power SystemsMPWRTOP PICKJan 06, 2026
Stock price when the opinion was issued
As of May 29, 2026. Market Open.
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Premium contentPremium contentPremium contentPremium contentPremium contentMWPR makes integrated power management systems for semiconductors. Its revenue growth over the past five years has exceed 25% annually and last year's EPS grew by 29%. We like that cash reserves are growing while shares are aggressively bought back, helping to support a ROE of 64%. We recommend setting a stop-loss at $600, looking to achieve $1200 -- upside potential of 34%. Yield 0.7%
(Analysts’ price target is $1201.00)He just sold it. He had bought it as a China and an AI play. Q3 earnings were decent with sales up 22%, but the market sold this off anyway. Then, research came out to say that their circuits did not integrate well with the new Blackwell GPUs. Shares tanked. He did a stop loss. He lost 30% on this momentum name. Move on.
We reiterate MPWR as a TOP PICK. As an analog semiconductor chip maker specializing in integrated power management systems, these chip are the backbone in many electronic applications. Recently reported earnings showed an 18% increase in revenues, and a five year annual average growth of 29% in EPS and 25% increase in dividends. The company is generating $700 million in free cash flow, while growing cash reserves, aggressively buying back shares, and generating a 64% ROE. We recommend trailing up the stop (from $600) to $750, looking to achieve $1200 - upside potential over 20%. Yield 0.6%
(Analysts’ price target is $1217.31)