10 Best Economic Recovery Stocks to Buy

3. Monolithic Power Systems, Inc. (NASDAQ:MPWR)

Estimated average analysts’ upside: 76.51%

Revenue CAGR last 5 years: 29.75%

Number of Hedge Fund Holders: 51

​​​Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a fabless semiconductor company designing high-performance and energy-efficient analog and mixed-signal integrated circuits (ICs) used in cloud computing, telecommunications, automotive, industrial, and consumer electronics. The company’s product portfolio is centered around DC-to-DC converters, AC-to-DC solutions, motor drivers, battery management systems, and sensors. MPWR’s presence across multiple high-growth and cyclical industries positions it to benefit from increased demand during economic recoveries.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) achieved its 13^th consecutive year of growth in 2024, posting full year revenue of $2.2 billion, representing a 21% increase from 2023. The company demonstrated strong performance in Q4 2024 with record quarterly revenue of $621.7 million, which was 37% higher than Q4 2023. This performance reflected the strength of their diversified market strategy, consistent execution, continued innovation, and strong customer focus.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) is transforming from being a chip-only semiconductor supplier to a full-service silicon-based solutions provider, with several new product developments, including silicon carbide inverters, automotive audio products, and high-accuracy converters. The company also continues to invest in new technology, expand into new markets, and diversify its end market applications and global supply chain to capture future growth opportunities and maintain supply chain stability. With exposure to primarily cyclical end markets and 79.51% average upside estimated by analysts, MPWR ranks 3^rd on our list of best economic recovery stocks to consider.