Monolithic Power Systems (MPWR) has seen significant growth in its stock price, driven by strong demand in AI and data center markets. While the company boasts high profitability and impressive returns on invested capital, its stock trades at a rich valuation, particularly on a sales multiple. Investors need to consider the substantial legal/patent risks and the potential for volatility, making it a conviction growth-quality opportunity that requires active monitoring.
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Monolithic Power Systems’ Huge Run Has A Price Tag
Monolithic Power Systems (MPWR) has seen significant growth in its stock price, driven by strong demand in AI and data center markets. While the company boasts high profitability and impressive returns on invested capital, its stock trades at a rich valuation, particularly on a sales multiple. Investors need to consider the substantial legal/patent risks and the potential for volatility, making it a conviction growth-quality opportunity that requires active monitoring.