What Happened?
Shares of power management chips maker Monolithic Power Systems (NASDAQ:MPWR) jumped 2.4% in the afternoon session after investor optimism continued to be fueled by the company's strong revenue growth and a positive consensus among analysts. The company showed strong revenue growth, especially in its industrial segment. This area grew significantly, with reports indicating a quarterly increase of 18.4% and a year-over-year rise of 25.7%. This growth was driven by high demand related to factory automation. Adding to the positive sentiment, the stock held a strong consensus "Buy" rating from multiple analysts, reflecting confidence in its performance and future prospects.
After the initial pop the shares cooled down to $988.31, up 2.6% from previous close.
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What Is The Market Telling Us
Monolithic Power Systems’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 2.6% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Monolithic Power Systems is up 66.3% since the beginning of the year, but at $988.31 per share, it is still trading 10.6% below its 52-week high of $1,105 from October 2025. Investors who bought $1,000 worth of Monolithic Power Systems’s shares 5 years ago would now be looking at an investment worth $3,055.
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