Validea's Leading IT Stocks Inspired by Peter Lynch - August 18, 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy MPWR?
Source: NASDAQ.COM
Top Rated IT Stocks: Validea's P/E/Growth Investor model highlights QUALCOMM INC, APPLIED MATERIALS INC, and FORTINET INC as top-rated stocks with a score of 91%, indicating strong interest based on their fundamentals and valuations.
Company Profiles: Qualcomm specializes in wireless technologies including 3G to 5G connectivity; Applied Materials provides equipment for semiconductor and display industries; Fortinet focuses on cybersecurity solutions integrating networking and security.
Other Notable Stocks: MONOLITHIC POWER SYSTEMS INC and SUPER MICRO COMPUTER INC received ratings of 74%, suggesting moderate interest according to the investment strategy.
About Peter Lynch: Renowned mutual fund manager Peter Lynch achieved significant returns with his common-sense investment approach, which is now utilized by Validea to analyze stocks based on his strategies.
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Analyst Views on MPWR
Wall Street analysts forecast MPWR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MPWR is 1200 USD with a low forecast of 950.00 USD and a high forecast of 1375 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 1155.990
Low
950.00
Averages
1200
High
1375
Current: 1155.990
Low
950.00
Averages
1200
High
1375
About MPWR
Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company design and develop its products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets. Direct Current (DC) to DC, Alternating Current (AC) to DC, driver metal-oxide-semiconductor field-effect transistor, power management integrated circuit (IC), current limit switch and lighting control products. Its DC to DC ICs are used to convert and control voltages within a range of electronic systems, such as cloud-based central processing unit (CPU) servers, server artificial intelligence (AI) applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, fourth generation (4G) and fifth generation (5G) infrastructure and satellite communications applications. The Company have sales offices in various locations in Asia, Europe and the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Monolithic Power Systems Q4 2025 Earnings Call Highlights
- Strong Financial Performance: In 2025, Monolithic Power Systems achieved full-year revenue of $2.8 billion, reflecting a 26.4% increase, with Q4 revenue hitting a record $751.2 million, representing a 1.9% sequential rise and a 20.8% year-over-year growth, indicating robust market performance and sustained growth potential.
- Increased Shareholder Returns: The company announced a 28% increase in its quarterly dividend to $2 per share, with over 72% of free cash flow returned to shareholders through buybacks and dividends over the past three years, underscoring its commitment to shareholders and financial health.
- Optimistic Market Outlook: Management raised the growth outlook for Enterprise Data from a range of 30%-40% to a floor of 50%, expecting to maintain strong trends in enterprise data, communications, and automotive sectors into 2026, reflecting confidence in future market demand.
- Ongoing Product Innovation: The company launched new solutions for 48-volt and zonal architectures in the automotive sector and began sampling its 800-volt power solutions, further solidifying its competitive edge across diversified markets.
See More
Monolithic Power Systems Reports Strong Q4 Earnings Beat
- Strong Performance: Monolithic Power Systems reported Q4 earnings of $4.79 per share, surpassing analyst expectations of $4.72, indicating a robust enhancement in profitability that solidifies its market position.
- Sales Growth: The company achieved quarterly sales of $751.155 million, exceeding the analyst consensus estimate of $739.928 million, demonstrating its successful expansion of market share amid strong demand.
- Strategic Transformation: CEO Michael Hsing noted that the company is transitioning from a chip-only supplier to a comprehensive silicon-based solutions provider, a strategic shift that lays the groundwork for future growth and enhances competitiveness.
- Stock Price Reaction: Following the earnings announcement, Monolithic Power's shares rose by 4.4% to $1,206.55, reflecting market optimism regarding the company's future prospects.
See More
Monolithic Power Systems Announces 28.2% Increase in Quarterly Dividend
- Quarterly Dividend Increase: Monolithic Power Systems has raised its quarterly dividend from $1.56 to $2.00 per share, marking a substantial 28.2% increase that reflects the company's robust financial performance and is likely to enhance investor confidence, potentially attracting more long-term investors.
- Payment Schedule: The new dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive their returns promptly and strengthening the relationship between the company and its investors.
- Dividend Growth Trend: This significant increase in dividends indicates the company's success in maintaining profitability and cash flow management, which is expected to drive stock price appreciation and enhance its attractiveness among investors.
- Market Reaction Expectations: Analysts are generally optimistic about Monolithic Power Systems' future performance, believing that this dividend increase will further solidify its leadership position in the power management market and may stimulate increased market interest and investment.
See More
Monolithic Power Systems Q4 Results Exceed Expectations
- Strong Earnings Beat: Monolithic Power Systems (MPWR) reported fourth-quarter results that exceeded expectations, leading to a nearly 2% rise in premarket shares, reflecting market confidence in the company's future growth.
- Analyst Rating Upgrade: Needham maintained its Buy rating on MPWR and raised the price target from $1,250 to $1,300, indicating optimism about the company's growth potential in the enterprise data sector.
- Healthy Demand Signals: The company's book-to-bill ratio was well above 1:1, and channel inventory levels are at the low end of the target range, suggesting robust overall demand and potential for sustained future performance.
- Enterprise Data Growth Outlook: Revenue from enterprise data is expected to increase by over 50% by 2026, primarily driven by design wins across its customer base, highlighting the company's competitive edge in the market.
See More
TD Cowen Increases Target Price for Monolithic Power Systems to $1,350 from $1,250
Company Overview: Monolithic Power Systems is a company that specializes in power management solutions.
Recent Financial Update: TD Cowen has raised the target price for Monolithic Power Systems from $1,250 to $1,350.
See More
Amazon's Huge Capital Spending Leads to Futures Losses and Bitcoin Bounce
- Market Volatility: Futures markets pared losses after the stock market broke key levels, indicating investor concerns about future economic prospects, which could lead to short-term market instability.
- Amazon's Capital Spending: Amazon's stock fell due to significant capital expenditures, reflecting the company's aggressive strategy in expansion and infrastructure investment, which may impact its short-term profitability.
- Bitcoin Bounce: Despite overall market pressure, Bitcoin saw a slight bounce, indicating a demand for digital assets as a safe haven in uncertain market conditions, potentially attracting more investor interest.
- Investor Sentiment: The market's strong reaction to Amazon's spending may lead investors to reassess the risk and return of tech stocks, influencing overall investment strategies.
See More
Monolithic Power Systems Q4 2025 Earnings Call Highlights
- Strong Financial Performance: In 2025, Monolithic Power Systems achieved full-year revenue of $2.8 billion, reflecting a 26.4% increase, with Q4 revenue hitting a record $751.2 million, representing a 1.9% sequential rise and a 20.8% year-over-year growth, indicating robust market performance and sustained growth potential.
- Increased Shareholder Returns: The company announced a 28% increase in its quarterly dividend to $2 per share, with over 72% of free cash flow returned to shareholders through buybacks and dividends over the past three years, underscoring its commitment to shareholders and financial health.
- Optimistic Market Outlook: Management raised the growth outlook for Enterprise Data from a range of 30%-40% to a floor of 50%, expecting to maintain strong trends in enterprise data, communications, and automotive sectors into 2026, reflecting confidence in future market demand.
- Ongoing Product Innovation: The company launched new solutions for 48-volt and zonal architectures in the automotive sector and began sampling its 800-volt power solutions, further solidifying its competitive edge across diversified markets.
See More
Monolithic Power Systems Reports Strong Q4 Earnings Beat
- Strong Performance: Monolithic Power Systems reported Q4 earnings of $4.79 per share, surpassing analyst expectations of $4.72, indicating a robust enhancement in profitability that solidifies its market position.
- Sales Growth: The company achieved quarterly sales of $751.155 million, exceeding the analyst consensus estimate of $739.928 million, demonstrating its successful expansion of market share amid strong demand.
- Strategic Transformation: CEO Michael Hsing noted that the company is transitioning from a chip-only supplier to a comprehensive silicon-based solutions provider, a strategic shift that lays the groundwork for future growth and enhances competitiveness.
- Stock Price Reaction: Following the earnings announcement, Monolithic Power's shares rose by 4.4% to $1,206.55, reflecting market optimism regarding the company's future prospects.
See More
Monolithic Power Systems Announces 28.2% Increase in Quarterly Dividend
- Quarterly Dividend Increase: Monolithic Power Systems has raised its quarterly dividend from $1.56 to $2.00 per share, marking a substantial 28.2% increase that reflects the company's robust financial performance and is likely to enhance investor confidence, potentially attracting more long-term investors.
- Payment Schedule: The new dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive their returns promptly and strengthening the relationship between the company and its investors.
- Dividend Growth Trend: This significant increase in dividends indicates the company's success in maintaining profitability and cash flow management, which is expected to drive stock price appreciation and enhance its attractiveness among investors.
- Market Reaction Expectations: Analysts are generally optimistic about Monolithic Power Systems' future performance, believing that this dividend increase will further solidify its leadership position in the power management market and may stimulate increased market interest and investment.
See More
Monolithic Power Systems Q4 Results Exceed Expectations
- Strong Earnings Beat: Monolithic Power Systems (MPWR) reported fourth-quarter results that exceeded expectations, leading to a nearly 2% rise in premarket shares, reflecting market confidence in the company's future growth.
- Analyst Rating Upgrade: Needham maintained its Buy rating on MPWR and raised the price target from $1,250 to $1,300, indicating optimism about the company's growth potential in the enterprise data sector.
- Healthy Demand Signals: The company's book-to-bill ratio was well above 1:1, and channel inventory levels are at the low end of the target range, suggesting robust overall demand and potential for sustained future performance.
- Enterprise Data Growth Outlook: Revenue from enterprise data is expected to increase by over 50% by 2026, primarily driven by design wins across its customer base, highlighting the company's competitive edge in the market.
See More
TD Cowen Increases Target Price for Monolithic Power Systems to $1,350 from $1,250
Company Overview: Monolithic Power Systems is a company that specializes in power management solutions.
Recent Financial Update: TD Cowen has raised the target price for Monolithic Power Systems from $1,250 to $1,350.
See More
Amazon's Huge Capital Spending Leads to Futures Losses and Bitcoin Bounce
- Market Volatility: Futures markets pared losses after the stock market broke key levels, indicating investor concerns about future economic prospects, which could lead to short-term market instability.
- Amazon's Capital Spending: Amazon's stock fell due to significant capital expenditures, reflecting the company's aggressive strategy in expansion and infrastructure investment, which may impact its short-term profitability.
- Bitcoin Bounce: Despite overall market pressure, Bitcoin saw a slight bounce, indicating a demand for digital assets as a safe haven in uncertain market conditions, potentially attracting more investor interest.
- Investor Sentiment: The market's strong reaction to Amazon's spending may lead investors to reassess the risk and return of tech stocks, influencing overall investment strategies.
See More
