15 Best Growth Stocks to Buy for the Next 3 Years

11. Monolithic Power Systems Inc. (NASDAQ:MPWR)

3-Year Revenue CAGR: 22.26%

Number of Hedge Fund Holders: 51

Monolithic Power Systems Inc. (NASDAQ:MPWR) designs, develops, markets, and sells semiconductor-based power electronics solutions. It serves a range of markets, such as storage & computing, automotive, enterprise data, consumer, communications, and industrial markets.

In Q4 2024, the company’s automotive sector demonstrated solid growth due to the increasing adoption of Monolithic Power Systems Inc.’s (NASDAQ:MPWR) solutions in EVs, particularly in China, and the anticipated ramp-up of new designs. Notably, the company provides integrated 48-volt solutions. Looking ahead, growth in the automotive segment is expected to be further fueled by a European OEM’s ADAS (autonomous driving) solution in H2 2025

On March 24, Truist Securities reiterated a Buy rating on the stock with a $897 price target. The firm emphasized Monolithic’s position as a pioneer in the analog semiconductor field, particularly noting the company’s ongoing strength in product innovation. Truist also predicted that Monolithic could potentially hit about 20% in sales growth and low-20% EPS growth over a business cycle.

TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q4 2024 investor letter:

“Monolithic Power Systems, Inc. (NASDAQ:MPWR) designs and develops integrated semiconductor solutions for power delivery architectures in computing, storage, automotive, industrial, communications, and consumer applications. Their stock came under pressure during the quarter due to a research report alleging technical issues with Monolithic’s products on Nvidia’s Blackwell AI platform and that it was in danger of completely losing that business. Our research indicated there is little merit to this claim and while Nvidia is going to multi-source, it is unlikely that Monolithic will be fully displaced. That gave us an opportunity to add this stock to the portfolio.”