Monolithic Power Outlook - A Stock Under Mixed Pressures

Market Snapshot

Takeaway: Monolithic Power is showing a recent price rise of 3.16%, but the technical outlook is weak with bearish signals dominating. Stance: Cautious.

News Highlights

• May 30 - McKinsey weighs in on tariffs and chip supply chains: Analysts from McKinsey & Co. released research on the impact of US tariffs on the semiconductor industry. The sector faces ongoing legal and policy uncertainty, which could affect companies like Monolithic Power in the long term.
• May 28 - US Semiconductors ETF SOXX Faces $750M Net Outflow: A major outflow from the semiconductor sector ETF SOXX signals shifting investor sentiment. This could indirectly impact Monolithic Power as it’s a component of the broader chip sector.
• May 30 - Japan to Offer U.S. Proposals for Cooperation on Rare Earths, Semiconductors: Japan and the U.S. are planning closer cooperation on semiconductors and rare earths. This could have positive long-term implications for global semiconductor supply chains and companies like Monolithic Power.

Analyst Views & Fundamentals

Analysts are broadly split in their outlooks for Monolithic Power, with a simple average rating of 4.10 and a performance-weighted average of 3.71. The ratings range from “Strong Buy” to “Neutral,” showing some divergence in expectations. However, these ratings do align with the current price trend of a 3.16% rise, indicating market sentiment is moderately positive.

Fundamental Highlights

• Net Cash Flow from Operating Activities per Share (YoY growth rate): 29.13% (internal diagnostic score: 2.00)
• EV/EBIT: 83.14 (internal diagnostic score: 2.00)
• Gross Profit Margin (GPM): 55.08% (internal diagnostic score: 0.00)
• Cash Flow from Operating Activities (CFOA): $0.0598 (internal diagnostic score: 3.00)
• Net Profit Attributable to Parent Company Shareholders (YoY growth rate): 38.68% (internal diagnostic score: 3.00)
• Cash to Market Value (Cash-MV): -0.84% (internal diagnostic score: 2.00)

Money-Flow Trends

Large-scale fund flows are showing a positive trend for Monolithic Power. The overall inflow ratio is 52.79%, with positive trends observed across all fund categories—from small to extra-large investors. The block inflow ratio is 53.00%, suggesting strong institutional confidence. Retail investors also show a slightly positive trend with an inflow ratio of 50.22%.

Key Technical Signals

The technical outlook for Monolithic Power is weak, with 4 bearish indicators and 0 bullish ones. The overall technical score is 1.9 (internal diagnostic score, 0-10).

Key Indicators and Recent Chart Patterns

• WR Overbought: Score 2.04 (internal diagnostic score). Recent signals indicate overbought conditions, typically associated with a higher risk of a price correction.
• MACD Death Cross: Score 1.00 (internal diagnostic score). A bearish signal, indicating a potential shift in momentum.
• Marubozu White: Score 1.00 (internal diagnostic score). Another bearish candlestick pattern suggesting a possible downward trend.

Recent Indicators by Date

• 2025-08-21: MACD Death Cross
• 2025-08-26: Marubozu White
• 2025-08-28: MACD Death Cross
• 2025-09-05: WR Overbought

Insight: The recent chart patterns reinforce the bearish bias. Momentum is weak, and the risk of a downward correction is elevated.

Conclusion

While Monolithic Power is showing a recent price rise of 3.16%, the technical outlook remains weak, with key indicators pointing to bearish momentum. The fundamental picture is mixed—some metrics suggest decent growth, but others remain under pressure. Analysts are divided in their views, and while inflows are positive, the technical warning signs are clear.

Actionable Takeaway: Consider waiting for a pull-back or clearer technical support before entering long positions. Investors should closely monitor the next earnings report and any broader sector developments, especially in light of ongoing geopolitical and policy shifts in the semiconductor industry.