Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the must-buy US stocks to buy right now. On March 19, Truist Securities analyst William Stein reiterated a Buy rating on Monolithic Power Systems, Inc. (NASDAQ:MPWR) and maintained his $1,396 price target. This move came right after Truist met with Monolithic’s executives.
Stein noted that during the meeting, management pointed to the company’s expanding design win pipeline. These design wins are rooted in Monolithic’s growing footprint in AI infrastructure. Interestingly, this aspect also happens to have been key in Truist’s stance on Monolithic in an earlier note, posted on December 19, where the firm raised its price target to $1,375 from $1,163 and left the Buy rating unchanged.
In that note, Truist noted that Monolithic was benefiting from next-generation GPU and XPU platforms that require higher-density power delivery. The note added that the company’s proprietary DC to DC converters and vertical power delivery solutions were targeting a market opportunity of more than $4 billion in AI data centers.
In that December note, Truist had also highlighted Monolithic’s emerging role in Power Distribution Boards for hyperscale AI clusters. Management saw these wins as structural, not cyclical, the firm noted.
In the current note, Truist noted that management came out of the March 18 meeting with high confidence in design wins, customer positioning, and margins. That optimism gave Truist the confidence to leave its calendar year 2027 EPS estimate unchanged at $25.39. In fact, Stein stated that the risk in his firm’s model is tilted toward the upside rather than the downside. Put simply, Truist believes there is a greater chance of Monolithic beating those estimates than missing them.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor company that designs and supplies power management solutions for electronic systems. It develops analog and mixed-signal integrated circuits, including DC-DC converters, power modules, battery management systems, and motor drivers used in data centers, consumer electronics, automotive systems, and industrial equipment.
While we acknowledge the risk and potential of MPWR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MPWR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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