MPWR Stock Surges 12% With A 7-day Winning Spree On Wells Fargo Upgrade
Monolithic Power Systems (MPWR) – a DC to DC integrated circuit manufacturer for voltage conversion – hit 7-day winning streak, with cumulative gains over this period amounting to a 12%. The company market cap has surged by about $5.6 Bil over the last 7 days, and currently stands at $51 Bil.
The stock has YTD (year-to-date) return of 18.6% compared to 0.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Wells Fargo Upgrade to Overweight
- Rating changed from Equal-Weight to Overweight
- Cited improving semiconductor sector outlook
- Impact: Stock price increased 5.3% after upgrade, Increased positive analyst sentiment
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in MPWR stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile (For details, see Buy or Sell MPWR).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for MPWR stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | MPWR | S&P 500 |
|---|---|---|
| 1D | 3.9% | 1.2% |
| 7D (Current Streak) | 12.1% | -1.3% |
| 1M (21D) | 15.8% | 1.5% |
| 3M (63D) | 4.4% | 2.1% |
| YTD 2026 | 18.6% | 0.4% |
| 2025 | 54.5% | 16.4% |
| 2024 | -5.6% | 23.3% |
| 2023 | 79.8% | 24.2% |
However, big gains can follow sharp reversals – but how has MPWR behaved after prior drops? See MPWR Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 28 S&P constituents with 3 days or more of consecutive gains and 34 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 11 | 12 |
| 4D | 4 | 13 |
| 5D | 4 | 2 |
| 6D | 2 | 2 |
| 7D or more | 7 | 5 |
| Total >=3 D | 28 | 34 |
Key Financials for Monolithic Power Systems (MPWR)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $1.8 Bil | $2.2 Bil |
| Operating Income | $481.7 Mil | $539.4 Mil |
| Net Income | $427.4 Mil | $1.8 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $664.6 Mil | $737.2 Mil |
| Operating Income | $164.8 Mil | $195.2 Mil |
| Net Income | $133.7 Mil | $178.3 Mil |
While MPWR stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.