Monolithic Power selling off on report of Nvidia loss, says Deutsche Bank
The Fly

Monolithic Power selling off on report of Nvidia loss, says Deutsche Bank

Deutsche Bank says a sell-side report was issued earlier today that indicated Monolithic Power (MPWR) would lose most if not all of its market share providing power management solutions for Nvidia’s (NVDA) latest generation artificial intelligence processors, suggesting the loss was due to performance issues at higher power levels. The firm has not been able to directly verify these claims, but notes its existing model assumes Monolithic loses share in 2025 and 2026 in Nvidia’s Blackwell generation, likely to Renesas initially and Infineon later. In addition, Deutsche would be surprised if Monolithic Power lost all of its share, saying the value of being the incumbent is high and the likelihood of such severe performance issues is low. Should the sell-side report prove true and Monolithic did lose all of its Nvidia business, this would put 15% of the company’s revenue at risk, the firm adds. It believes the worst case is currently being priced into Monolithic shares. Deutsche has a Buy rating on the name with a $900 price target. The stock in morning trading is down 19%, or $148.03, to $613.27.

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App