Monolithic Power Rides High On NVIDIA Partnership, AI Roadmap, And Pipeline Strength: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating on Monolithic Power Systems, Inc. (MPWR), raising the price target to $750 from $550 due to a strong AI roadmap and partnership with NVIDIA Corporation (NVDA). The company is expected to benefit from the power analog AI sector, sophisticated power analog and liquid cooling techniques, and its relationship with NVIDIA and other AI accelerator chip players. Additionally, Monolithic Power is likely to see dollar content expansion in automotive platforms, chasing Tesla, Inc. (TSLA) EV/autonomous driving innovation. Revenue and EPS projections for FY23, FY24, and FY25 were provided, with a price target based on a high-30's P/E multiple and a 20%+ sales CAGR.
December 26, 2023 | 6:59 pm
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NEUTRAL IMPACT
Tesla's innovation in EV/autonomous driving is seen as a benchmark for the industry, potentially benefiting Monolithic Power's automotive platform expansion.
While Tesla is not directly involved in the partnership, its role as an industry innovator could indirectly benefit companies like Monolithic Power that provide complementary technologies.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Monolithic Power's price target was raised to $750 by Rosenblatt Securities, reflecting confidence in its AI roadmap, NVIDIA partnership, and automotive sector growth.
The raised price target and positive analyst outlook suggest a strong short-term bullish sentiment for MPWR, driven by its strategic partnerships and sector growth.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
NVIDIA's partnership with Monolithic Power is highlighted as a key factor in MPWR's growth, which could reflect positively on NVIDIA's own market position.
NVIDIA's involvement as a key partner to Monolithic Power is likely to be viewed positively by investors, potentially benefiting NVDA's stock in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70