Monolithic Power Tumbles 4.59% Despite Record Earnings and $830M Volume Ranking 147th

Market Snapshot

Monolithic Power (MPWR) fell 4.59% on November 4, 2025, with a trading volume of $0.83 billion, ranking 147th in market activity among U.S. equities. The stock opened at $1,003.93, trading near its 52-week low of $438.86 and below its 52-week high of $1,123.38. The decline occurred despite strong quarterly earnings of $4.73 per share, exceeding estimates by $0.11, and a 18.9% year-over-year revenue increase to $737.18 million. The stock’s 50-day and 200-day moving averages stand at $934.73 and $790.01, respectively, while its market cap remains at $48.08 billion.

Key Drivers

Monolithic Power’s earnings report, released October 30, highlighted robust financial performance, with non-GAAP EPS of $4.73 and revenue growth driven by demand in computing and automotive markets. However, the stock’s 4.59% decline suggests investor caution, potentially linked to broader market sentiment or concerns about valuation. The company’s 0.6% annualized dividend yield, derived from a $1.56 per share quarterly payout, may have provided limited support to price.

Analyst activity has been predominantly bullish, with a “Moderate Buy” consensus rating from 14 firms. TD Cowen raised its price target to $1,250.00 (14.94% upside from the previous close), while Wolfe Research and Raymond James Financial maintained elevated targets of $1,200.00 and $875.00, respectively. Despite these optimistic forecasts, the stock’s put/call ratio of 1.23 indicates bearish options positioning, signaling potential short-term volatility.

Recent analyst upgrades underscore confidence in Monolithic Power’s long-term potential. Stifel Nicolaus increased its price target to $1,100.00, and Oppenheimer raised its objective to $800.00. However, mixed institutional activity complicates the outlook. While 93.46% institutional ownership reflects strong confidence, insider selling by executives like CFO Theodore Blegen and EVP Saria Tseng—reducing their holdings by 6.83% and 9.13%, respectively—may signal internal uncertainty.

The stock’s price action also reflects broader semiconductor sector dynamics. Institutional investors, including T. Rowe Associates and Vanguard, increased allocations to MPWR, with the former boosting its stake by 19.02% in the last quarter. Yet, declining projected revenue (2,505MM, a 5.86% drop) and a bearish put/call ratio highlight market skepticism about near-term growth. Analysts project 13.2 EPS for 2025, but the stock’s P/E ratio of 26.14 suggests investors are paying a premium for earnings, which may amplify downside risk in a slowing economy.

In summary, Monolithic Power’s earnings and analyst ratings reinforce its strategic position in high-growth markets like AI and 5G. However, technical indicators, insider selling, and mixed institutional sentiment highlight a tug-of-war between optimism and caution. The stock’s near-term trajectory will likely hinge on whether earnings momentum outpaces macroeconomic concerns and whether analysts’ price targets align with market expectations.