Monolithic Power Systems: A Profitable Investment Opportunity?

Monolithic Power Systems (NASDAQ:MPWR) is a US-based company with impressive earnings growth, from $8.52 to $38.86 in one year. Despite being loss-making, the company has maintained stable EBIT margins and grown revenue 34% to $2.5b. Insiders own a significant stake, valued at $1.3b, indicating their commitment to shareholder interests. While profit is not the sole metric to consider, Monolithic Power Systems' strong financial performance makes it a company worth watching.

Monolithic Power Systems (MPWR) has demonstrated impressive financial growth despite operating at a loss. The company's earnings per share (EPS) increased from $8.52 to $38.86 over the past year, a remarkable 34% growth in revenue to $2.5 billion. Despite these gains, Monolithic Power Systems has maintained stable EBIT margins, indicating a resilient financial foundation.

Insider ownership of the company's stock is significant, with a value of $1.3 billion, reflecting a strong commitment to shareholder interests. The company's stock has shown signs of recovery, with recent bullish signals from technical indicators such as the Relative Strength Index (RSI) and the Bullish Marubozu pattern [2]. These signals suggest a potential buying opportunity, as the stock has fallen below its fundamental support level.

Monolithic Power Systems' strong financial performance, despite losses, makes it a company worth watching. The company's focus on semiconductor-based power electronics solutions for various markets, including storage, computing, and automotive, positions it well for future growth. As the demand for these technologies continues to rise, Monolithic Power Systems is poised to capitalize on this trend.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-redwood-investment-management-llc-invests-134-million-in-monolithic-power-systems-inc-mpwr-2025-08-27/
[2] https://www.ainvest.com/news/monolithic-power-15min-chart-shows-rsi-oversold-bullish-marubozu-signal-2508/