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If You Invested $1000 in Monolithic Power a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Monolithic Power (MPWR - Free Report) ten years ago? It may not have been easy to hold on to MPWR for all that time, but if you did, how much would your investment be worth today?
Monolithic Power's Business In-Depth
With that in mind, let's take a look at Monolithic Power's main business drivers.
Monolithic Power Systems, based in Kirkland, WA, designs, develops and markets high-performance power solutions. The company focuses on the market for high-performance analog and mixed-signal integrated circuits (ICs).
Monolithic’s products are widely utilized in industrial applications, telecommunication infrastructures, cloud computing, automotive and consumer applications.
Being a fabless company, Monolithic works with third-party contractors and chip assemblers for the manufacturing, assembling and testing of wafers and ICs. This approach permits the company to focus more on the designing and development of process technology at a lower-fixed cost.
Unlike other fabless semiconductor companies, Monolithic installs its own proprietary process technologies in third-party contractors’ equipment and facilities.
Monolithic reported total revenues of $451.1 million in the first quarter of 2023. The company’s key product families are direct current to direct current (DC to DC) products and Lighting Control products.
DC to DC ICs are used to convert and control voltages within a broad range of electronic systems, such as portable electronic devices, wireless LAN access points, computers and monitors, automobiles and medical equipment. The product line accounted for 94.3% of total revenues in the first quarter 2023.
Lighting control ICs are used in backlighting and general illumination products. In the first quarter of 2023, the product line accounted for 5.7% of total revenues.
End-market wise, 26.6% of total revenues came from Computing and Storage in the first quarter of 2023.
Precisely, Enterprise Data, Consumer, Industrial, Automotive and Communications end-markets contributed 10.5%, 14.1%, 10.5%, 23.3% and 15.0%, respectively to the first quarter of 2023 revenues.
Monolithic’s primary competitors are Analog Devices, Infineon Technologies, Renesas Electronics (post Intersil acquisition), Analog Devices (post Linear Technology acquisition and impending buyout of Maxim Integrated), NXP Semiconductors, ON Semiconductor, Power Integrations, ROHM Semiconductor, Semtech and Texas Instruments.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Monolithic Power a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $22,945.48, or a 2,194.55% gain, as of July 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.42% and gold's return of 46.63% over the same time frame.
Going forward, analysts are expecting more upside for MPWR.
Monolithic is likely to gain from its robust product portfolio that targets In-Car connectivity and infotainment, advanced driver assistance system (ADAS) and rapid adoption of LED lighting in cars and vehicles. Its deep-rooted partnerships with leading auto suppliers will likely boost the top line. With an array of legacy routers and 5G networking infrastructure-related devices, the company is also poised to gain from rapid 5G adoption. Net sales growth in Communication, Storage and Computing verticals is a major tailwind. However, weakness in data center spending, lower security and power source revenues are impeding top-line improvement. Elevated inventory levels triggered by demand-supply imbalances following the pandemic still remain a concern. Stiff competition, lack of geographic diversity and customer concentration are headwinds.
The stock has jumped 11.04% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in Monolithic Power a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Monolithic Power (MPWR - Free Report) ten years ago? It may not have been easy to hold on to MPWR for all that time, but if you did, how much would your investment be worth today?
Monolithic Power's Business In-Depth
With that in mind, let's take a look at Monolithic Power's main business drivers.
Monolithic Power Systems, based in Kirkland, WA, designs, develops and markets high-performance power solutions. The company focuses on the market for high-performance analog and mixed-signal integrated circuits (ICs).
Monolithic’s products are widely utilized in industrial applications, telecommunication infrastructures, cloud computing, automotive and consumer applications.
Being a fabless company, Monolithic works with third-party contractors and chip assemblers for the manufacturing, assembling and testing of wafers and ICs. This approach permits the company to focus more on the designing and development of process technology at a lower-fixed cost.
Unlike other fabless semiconductor companies, Monolithic installs its own proprietary process technologies in third-party contractors’ equipment and facilities.
Monolithic reported total revenues of $451.1 million in the first quarter of 2023. The company’s key product families are direct current to direct current (DC to DC) products and Lighting Control products.
DC to DC ICs are used to convert and control voltages within a broad range of electronic systems, such as portable electronic devices, wireless LAN access points, computers and monitors, automobiles and medical equipment. The product line accounted for 94.3% of total revenues in the first quarter 2023.
Lighting control ICs are used in backlighting and general illumination products. In the first quarter of 2023, the product line accounted for 5.7% of total revenues.
End-market wise, 26.6% of total revenues came from Computing and Storage in the first quarter of 2023.
Precisely, Enterprise Data, Consumer, Industrial, Automotive and Communications end-markets contributed 10.5%, 14.1%, 10.5%, 23.3% and 15.0%, respectively to the first quarter of 2023 revenues.
Monolithic’s primary competitors are Analog Devices, Infineon Technologies, Renesas Electronics (post Intersil acquisition), Analog Devices (post Linear Technology acquisition and impending buyout of Maxim Integrated), NXP Semiconductors, ON Semiconductor, Power Integrations, ROHM Semiconductor, Semtech and Texas Instruments.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Monolithic Power a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $22,945.48, or a 2,194.55% gain, as of July 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.42% and gold's return of 46.63% over the same time frame.
Going forward, analysts are expecting more upside for MPWR.
Monolithic is likely to gain from its robust product portfolio that targets In-Car connectivity and infotainment, advanced driver assistance system (ADAS) and rapid adoption of LED lighting in cars and vehicles. Its deep-rooted partnerships with leading auto suppliers will likely boost the top line. With an array of legacy routers and 5G networking infrastructure-related devices, the company is also poised to gain from rapid 5G adoption. Net sales growth in Communication, Storage and Computing verticals is a major tailwind. However, weakness in data center spending, lower security and power source revenues are impeding top-line improvement. Elevated inventory levels triggered by demand-supply imbalances following the pandemic still remain a concern. Stiff competition, lack of geographic diversity and customer concentration are headwinds.
The stock has jumped 11.04% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.