Monolithic Power stock surges on earnings, guidance
Shares Monolithic Power Systems (MPWR) surged higher on Thursday. The chip company reported better-than-expected fourth quarter results and 2024 guidance. Investors are betting its AI exposure will power future growth. Monolithic Power also announced it's raising its dividend from $1.00 per share to $1.25 per share.
Yahoo Finance's Julie Hyman and Josh Lipton break down the report.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JOSH LIPTON: This semiconductor device company that reported, Julie, Q4 results beat on the top and the bottom. Investors seem to like the outlook as well. Lots of talk about, you guessed it, on AI as well. Interesting note from the team at Truist. They comparing and contrasting saying this company is showing what they refer to as remarkable performance relative to peers that are struggling with industrial and auto demand and excess inventory. So monolithic, they were saying navigating the waters here better than some rivals.
JULIE HYMAN: Yeah. This was one, full disclosure, and I'm disclosing on your behalf as well, Josh, this was one that we were not super familiar with, right? It just was added to the S&P 500 in February 2021, so it hasn't been in the S&P for that long here. But and, and I feel like the semiconductor industry in terms of size has been expanding.
And this one is one of those that wasn't necessarily on our list before. I mean, I think Confluent in the enterprise software realm is in that category as well. And as we talk about the Mag Seven, and the biggest of the big, there are a lot of these, they're not small cap, they're still large cap, but not the largest, that are also standing out this earnings season, which has been an interesting trend to see.
JOSH LIPTON: Yeah. I am guilty of sleeping on this one. But a lot of people have. This stock is now up about 60% in the past 12 months. It's a big move, and about 70% of analysts who rate this one still say buy it.
JULIE HYMAN: Interesting. Well, and it's also trending on our ticker page today. So obviously people are taking note.
