Fortnightly Publication Highlighting Latest Insights From IRF Providers
Company Research
Monolithic Power Systems (MPWR)
Technology
KinNgai Chan continues to believe MPWR is positioned to benefit from the increased power requirement from AI-related xPUs, Server CPUs, and DDR5 DRAM. While he understands investors' concern about the company's future market share in the AI market, he believes it can offset any share loss with market unit growth coupled with content increase. While the Enterprise Data and Storage & Computing end-markets represents the largest growth opportunity for MPWR in 2025, KinNgai's checks also indicate that MPWR will likely gain share in other market verticals. He expects MPWR to outperform Street expectations.
Edition: 198
- 01 November, 2024
SOXX starting another leg higher
Technology
After a 17% pullback from the March high the iShares Semiconductor ETF (SOXX) is emerging from a consolidation phase and about to start another bullish leg higher. Guy Cerundolo scored the constituents of the SOXX and found 53% of the stocks with a bullish multi-factor model score. His top five scoring stocks are: Nvidia, Broadcom, KLA Corp, Applied Materials and Monolithic Power Systems. A full listing and chart review of the constituents is available on request.
Edition: 186
- 17 May, 2024
Monolithic Power Systems (MPWR)
Technology
4Q23 sales declined 4% q/q, but MPWR's position in AI was able to offset demand weakness in many of its other end markets. Kinngai Chan believes the company will remain well positioned in the AI-related and computing markets and expects both areas to support future quarters' outperformance. Additionally, he expects gross margin will improve to the high-50% range in 2H24 as next-generation design wins ramp coupled with lower pricing from the foundry. MPWR can continue to grow faster than its peers and outperform consensus expectations in the near to medium, driven by content growth, share gains and new markets.
Edition: 179
- 09 February, 2024
FirstAlert: 10Q/10K analysis module
280First's flagship product rapidly extracts actionable insights from financial filings through quantitative and qualitative inputs. Recent alerts include: 1) Casella Waste Systems - targeting larger, more strategic acquisitions which would require additional financing either in the form of debt or equity. 2) Halliburton - no longer focusing on increasing cash returns to shareholders. 3) Monolithic Power Systems - loss of customers and less bullish on margins. 4) Prestige Consumer Healthcare - worries around demand elasticity and market share. 5) Seagate Technology - large hyperscale DC customer concerns.
Edition: 160
- 12 May, 2023