$Monolithic Power(MPWR)$ π‘π₯β‘ Why I want to buy Monolithic Power Systems ($MPWR) today @Daily_Discussion Thank you, Daily Discussion, for the coins awarded today. Bringing my total to 82,275 coins. Grateful for the recognition. Every win fuels the next.
Iβm extremely confident Monolithic Power Systems is delivering the rare combination of undervalued quality growth, real breakout momentum, and structural AI tailwinds, yet itβs flying under the radar. While the crowd is piling into extended names like $NVDA and $AVGO, Iβm focused on a fabless outperformer thatβs not just riding the AI wave but powering its most space-constrained, performance-sensitive devices.
The technicals are screaming breakout. The fundamentals are elite. The valuation is misunderstood. Letβs break this down.
π Whatβs driving this setup?
β’ Citi just raised its price target from $785 to $825, and the stock surged over 5% intraday to $835. Thatβs not retail; itβs institutions rotating into strength.
β’ MPWRβs 5-year sales CAGR is 26.9%, yet it trades at a significantly lower P/E than Nvidia or Broadcom. The market hasnβt caught up.
β’ Powering Nvidiaβs Blackwell: MPWRβs dense power architecture is a perfect fit for GPUs where board real estate is critical. This isnβt just another chip supplier; itβs embedded in tomorrowβs infrastructure.
β’ Quality at the core: With 55% ROIC, 115% ROE, and a fabless model, this is arguably one of the most profitable, efficient power players globally.
β’ CEO/founder-led since 1997: Michael Hsing still holds a 2% stake and hasnβt stepped aside. Heβs still actively building. That matters.
π Stock to Watch Today: $MPWR
β’ Todayβs Move: +5.73%, closing near highs at $835
β’ Performance: +8,047% total return since inception (CAGR 23.8%)
β’ Catalyst: Citiβs target hike, plus sector rotation into power components
β’ Trend: Consolidation breakout across all timeframes with macro tailwinds in EVs, edge AI, and robotics
The 4H and daily charts confirm the setup. Price exploded out of compression bands, now riding upper Keltner and Bollinger envelopes. RSI on the weekly is at 68.9 with momentum accelerating. The 15m chart shows textbook AVWAP alignment above EMA 21 and 55; this isnβt noise, itβs a defined trend.
π‘ Trading Plan
β’ Setup: Post-consolidation breakout with upside momentum and options tailwind
β’ Entry: Buy between $828 and $835
β’ Target: $950 (previous high and current Street high PT)
β’ Stop-loss: $805 to protect against post-Citi reversal
β’ Risk: Minor analyst split (Wells Fargo still holding a $750 PT), but improving consensus and options sentiment suggest that may soon flip
π― Market Bias Today
If capital rotation continues toward high-quality semis and away from crowded mega caps, $MPWR stands to benefit directly. The stock fits perfectly in a narrative of smart institutions allocating toward profitable AI enablers, not just headline makers. With rising short interest (32.85%) and a short ratio of 19.3, we could see a pressure-driven extension.
π‘οΈ Risk Management Snapshot
β’ Size position at 1.5%β2% of portfolio
β’ Stop-loss below $805 to guard against reversal gaps
β’ Take partials near $880 if momentum stalls pre-breakout
π₯ Why Today Matters
Today isnβt just another green candle. Itβs confirmation of a high-conviction thesis playing out in real time. $MPWR is a top-tier compounder with founder alignment, elite profitability, and a role in the physical deployment of AI and automation. And right now, itβs showing us itβs ready to lead again. Iβm not just watching it; Iβm buying it.
π’ Donβt miss out! Like, Repost and Follow me for exclusive setups, cutting-edge trends, and insights that move markets ππ Iβm obsessed with hunting down the next big movers and sharing strategies that crush it. Letβs outsmart the market and stack those gains together! π
Trade like a boss! Happy trading ahead, Cheers, BC πππππ
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Good one bc sharing this one fr π₯