Stock Analysis | Monolithic Power Outlook - Mixed Signals Amid Sector Volatility

Market Snapshot

Headline Takeaway: Monolithic Power (MPWR.O) continues to climb on an 8.90% price increase, but analyst views are mixed and technical indicators are neutral, urging a cautious approach.

News Highlights

1. Trump Announces 100% Tariffs on Semiconductors

President Donald Trump announced a 100% tariff on imported semiconductors, creating immediate sector jitters. While U.S. chipmakers like Apple and Texas Instruments are strengthening domestic production, the move could raise costs and disrupt global supply chains. Monolithic Power, as a U.S. semiconductor player, may benefit or face headwinds depending on how the policy unfolds.

2. Cyient and GlobalFoundries Strengthen Semiconductor Supply Chain

Cyient Semiconductors has partnered with GlobalFoundries to boost custom silicon development. The move enhances the semiconductor ecosystem and could drive demand for components and services, indirectly supporting firms like Monolithic Power in the broader sector.

3. Malaysia's Semiconductor Exports Exempt for Now

Malaysia’s semiconductor exports to the U.S. remain exempt from retaliatory tariffs, at least for now. This provides some short-term stability for global semiconductor trade but remains subject to future policy changes.

Analyst Views & Fundamentals

Recent analyst ratings show a simple average score of 4.10 and a weighted performance rating of 3.48, indicating a generally neutral-to-bearish outlook based on historical accuracy. Analysts are divided, with 4 "Strong Buy", 3 "Buy", and 3 "Neutral" ratings in the last 20 days. The stock's price is currently in an upward trend, but this doesn't strongly align with the average analyst ratings, which are performance-weighted toward caution.

Key Fundamental Factor Values:

• Net profit attributable to parent company shareholders (YoY growth rate): 38.68% — indicates strong growth in profitability, aligned with a high internal diagnostic score (3.72).
• Net cash flow from operating activities per share (YoY growth rate): 29.13% — suggests solid cash generation, with a moderate internal diagnostic score (6.65).
• Inventory turnover days: 140.55 — reflects a relatively slow turnover, with a low internal diagnostic score (8.15).
• Accounts receivable turnover ratio: 7.09 — indicates moderate liquidity, with the lowest internal diagnostic score (1.00).

Money-Flow Trends

Big-money investors are showing a positive trend in their inflow patterns, with large and extra-large investors pushing in funds with inflow ratios of 51.35% and 51.40% respectively. The fund flow score is 7.65 (good), indicating strong institutional confidence. In contrast, small investors have shown a negative trend, with an inflow ratio of only 49.09%, suggesting retail caution or uncertainty in the current environment.

Key Technical Signals

Monolithic Power's technical indicators are mixed, with an overall trend of neutrality, according to our proprietary model. The technical score is 5.86, meaning the chart is currently in a consolidation phase without a clear direction.

Recent Chart Patterns:

• 2025-07-31: WR Oversold and Earnings Release Date both showed positive internal diagnostic scores of 8.15 and 7.51, suggesting short-term bullish signals around earnings.
• 2025-08-05: A Long Lower Shadow pattern appeared, with an internal diagnostic score of 6.65, reinforcing the bullish outlook.
• 2025-08-07: A Bearish Engulfing candle formed, with a strong internal diagnostic score of 7.14, suggesting a potential reversal to the upside.

Key Insights:

• The market is in a neutral, consolidating phase with mixed momentum signals.
• Bullish and bearish indicators are nearly balanced, with 3 bullish and 2 bearish signals in the recent 5-day period.

Conclusion

Monolithic Power is in a holding pattern with mixed analyst views, positive institutional money flow, and neutral technical signals. While recent patterns suggest potential for a rebound, the lack of a clear trend and mixed fundamental momentum suggest cautious monitoring rather than aggressive entry. Consider waiting for a pull-back or clearer momentum signals before taking a position, especially given the sector's sensitivity to U.S. policy shifts and earnings surprises.