Monolithic Power upgraded to Buy at Loop Capital following selloff

As previously reported, Loop Capital upgraded Monolithic Power (MPWR) to Buy from Hold with an unchanged price target of $660 following the 10% selloff since the firm initiated coverage of the stock on November 11 and the 40% decline from the stock’s 52-week high. The share pressure has been triggered by investors concerns that Monolithic may not retain 100% PMIC market share with Nvidia’s (NVDA) AI GPU systems and the “lumpiness” in Nvidia’s orders, notes the analyst, who feels confident in the FY25 revenue consensus of $2.6B and believes Nvidia’s Enterprise Data segment should be accretive to the 20% growth assumed in consensus revenue forecasts.