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Here's How Much a $1000 Investment in Monolithic Power Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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 $507.4 million in the second quarter of 2024. 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 98.8% of total revenues in the second quarter of 2024. Lighting control ICs are used in backlighting and general illumination products. In the second quarter of 2024, the product line accounted for 1.2% of total revenues.
End-market-wise, 22.6% of total revenues came from Computing and Storage in the second quarter of 2024.
Precisely, Enterprise Data, Consumer, Industrial, Automotive and Communications end-markets contributed 36.9%, 8.3%, 6.4%, 17.2% and 8.6%, respectively, to the second quarter of 2024 revenues.
Monolithic’s primary competitors are Skyworks Solutions (SWKS), Microchip Technology (MCHP), Lattice Semiconductor (LSCC), IPG Photonics (IPGP), Power Integrations (POWI), Cree (CREE), Semtech (SMTC), Micron Technology (MU), Analog Devices (ADI), and GLOBALFOUNDRIES (GFS).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Monolithic Power ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $19,562.16, or a gain of 1,856.22%, as of September 2, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 181.94% and gold's return of 86.52% over the same time frame.
Analysts are forecasting more upside for MPWR too.
Monolithic reported strong second-quarter 2024 results, wherein both the top and bottom lines beat the respective Zacks Consensus Estimate. The results were driven by increased year-over-year sales of server solutions. The company is well-positioned to benefit from IoT and AI growth, with expanding automotive sector involvement, robust in-car connectivity and driver assistance products. Investments in various markets, along with the development of the AI-driven e-commerce platform, support future expansion. Strategic partnerships are expected to enhance technology development while reducing costs. However, Monolithic confronts intense competition in the analog market, resulting in pressure on profit margins. Soft demand for point-of-sale applications and reduced sales in storage solutions further complicate the landscape.
Over the past four weeks, shares have rallied 17.46%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Monolithic Power Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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 $507.4 million in the second quarter of 2024. 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 98.8% of total revenues in the second quarter of 2024.
Lighting control ICs are used in backlighting and general illumination products. In the second quarter of 2024, the product line accounted for 1.2% of total revenues.
End-market-wise, 22.6% of total revenues came from Computing and Storage in the second quarter of 2024.
Precisely, Enterprise Data, Consumer, Industrial, Automotive and Communications end-markets contributed 36.9%, 8.3%, 6.4%, 17.2% and 8.6%, respectively, to the second quarter of 2024 revenues.
Monolithic’s primary competitors are Skyworks Solutions (SWKS), Microchip Technology (MCHP), Lattice Semiconductor (LSCC), IPG Photonics (IPGP), Power Integrations (POWI), Cree (CREE), Semtech (SMTC), Micron Technology (MU), Analog Devices (ADI), and GLOBALFOUNDRIES (GFS).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Monolithic Power ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $19,562.16, or a gain of 1,856.22%, as of September 2, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 181.94% and gold's return of 86.52% over the same time frame.
Analysts are forecasting more upside for MPWR too.
Monolithic reported strong second-quarter 2024 results, wherein both the top and bottom lines beat the respective Zacks Consensus Estimate. The results were driven by increased year-over-year sales of server solutions. The company is well-positioned to benefit from IoT and AI growth, with expanding automotive sector involvement, robust in-car connectivity and driver assistance products. Investments in various markets, along with the development of the AI-driven e-commerce platform, support future expansion. Strategic partnerships are expected to enhance technology development while reducing costs. However, Monolithic confronts intense competition in the analog market, resulting in pressure on profit margins. Soft demand for point-of-sale applications and reduced sales in storage solutions further complicate the landscape.
Over the past four weeks, shares have rallied 17.46%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.