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Monolithic Power’s Bullish Outlook: Upgraded Targets and Promising Q3 Forecasts

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 8/2/2025, 9:46 am ET 8/2/2025, 9:46 am ET | 5 min 5 min read
Monolithic Power’s Bullish Outlook: Upgraded Targets and Promising Q3 Forecasts Thumbnail

Monolithic Power Systems Inc.’s stocks have been trading up by 10.34 percent despite potential market fluctuations.

Technology industry expert:

Analyst sentiment – positive

Monolithic Power Systems (MPWR) displays strong fundamentals, affirming a solid market position in the semiconductor industry with impressive metrics such as a gross margin of 55.4% and a robust EBIT margin of 26.9%. The company reports a noteworthy return on assets of 27.13% and an impressive return on equity of 33.21%, indicating effective management and strategic deployment of capital. MPWR maintains a debt-free balance sheet backed by a current ratio of 4.9, suggesting financial stability and operational efficiency. The revenue depicts a strong upward trajectory with a 31% year-over-year increase, complementing its valuation profile, with a PE of 18.97 compared to a broader industry average, showcasing a balance between growth prospects and cost-effectiveness.

From a technical analysis standpoint, MPWR is currently exhibiting bullish momentum, as indicated by recent price action. A breakout above $726.99 on July 30 and a subsequent climb challenges resistance at $740, setting a precedent for new price highs. Support is solidified at $726.99, previously tested on July 29. Volume analysis reveals heightened interest, suggesting accumulation. A strategic entry point is recommended at a pullback to $730, with profit-taking near the psychological level of $750 and a stop loss positioned below $720. Given current patterns, traders should capitalize on breakout opportunities, ensuring alignment with broader market trends while maintaining risk management discipline.

Recent upgrades and projections reflect a positive outlook for MPWR, supported by notable price target increases from prominent analysts. Raymond James, KeyBanc, and Loop Capital have underscored the company’s prospects for sustained growth, with expectations of $710M-$730M in Q3 revenue, exceeding prior forecasts. Favorable conditions in AI, automotive, and industrial automation fortify MPWR’s trajectory compared to Technology and Semiconductor benchmarks. The analyst community largely anticipates robust returns driven by diversified market strategies, evidenced by an 11% post-earnings surge. With resistance levels expected near $870-$950, MPWR is poised for significant advancement, maintaining its competitive edge in the evolving semiconductor landscape.

Candlestick Chart

Weekly Update Jul 28 – Aug 01, 2025: On Friday, August 01, 2025 Monolithic Power Systems Inc. stock [NASDAQ: MPWR] is trending up by 10.34%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Monolithic Power Systems reported an impressive Q2 earnings performance, with revenues reaching $664.6 million—an increase of 31% compared to the same period last year. The company continues its upward trajectory in industries like storage, computing, automotive, and communications. Monolithic Power’s gross margin, at 55.4%, illustrates a solid profitability level, backed by effective cost management and strategic expansion into high-demand areas like AI and industrial automation.

The company maintains a debt-free balance sheet with over $1.15 billion in cash, demonstrating strong financial health that allows for strategic investments and operational flexibility. With robust earnings per share (EPS) of $4.21, which beat analysts’ expectations, it is clear the company is effectively leveraging its market position to drive growth. This optimistic financial outlook is further bolstered by the positive Q3 revenue guidance of up to $730 million, indicating stronger market demand.

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Ratios like a price-to-earnings (P/E) ratio of 18.97 and a price-to-sales ratio of 14.27 reflect a premium valuation aligned with high growth expectations. Management’s focus on secures continuous growth and shareholder value, making Monolithic Power an attractive player in the semiconductor industry.

Conclusion

Monolithic Power’s latest financial results and future guidance reveal a steadfast company poised for continued growth amidst global technological advancements. The strategic enhancements in key growth areas like AI, automotive, and industrial automation are propelling the company forward, fostering a bright outlook that resonates well with traders and analysts alike. The increased price targets underscore a significant trust in Monolithic Power’s prospects to not only meet but exceed the high expectations set before them. As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This adaptability is evident in Monolithic Power’s approach, as they strategically respond to market demands and technological trends, ensuring their relevance and success.

With a robust financial foundation and a clear path towards innovation and market leadership, Monolithic Power Systems is strategically well-positioned to continue delivering value to stakeholders and to capitalize on unfolding opportunities in an increasingly digital world. These positive signals affirm the company’s capability to navigate complex market dynamics and chart a successful course in the high-tech industry.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”