Monolithic Power Systems slumps as forecast disappoints

Monolithic Power Systems

31/10/2024 15:50

Oct 31 (Reuters) -    ** Semiconductor-based product
maker Monolithic Power Systems shares  MPWR.O  tumble 18% to
$752.8 after Q4 revenue forecast fails to impress investors  
    ** MPWR forecasts sequential sales dip in Q4 due to possible
weak EV demand, which can hamper sales of its vehicle power
control and semiconductor products
    ** MPWR expects Q4 revenue between $600 mln to $620 mln,
with a midpoint of $610 mln, above Wall St est. of $602.7 mln-
LSEG
    ** At the midpoint, sales would sequentially decline close
to 2% 
    ** "We have rosy expectations for both AI and non-AI growth
over the next 10 years for MPS, but we believe there remains
some overexuberance priced into the stock at current levels,"
Morningstar analysts write in a note
    ** Stock still up about 46% YTD, having touched an all-time
high late August
    ** Overall, tech and chip sector slump on Thursday following
AI-related cost warnings from Microsoft  MSFT.O  and Meta
Platforms  META.O 
    ** The Philadelphia SE Semiconductor index  .SOX  down about
4%, while tech-heavy Nasdaq  .IXIC  falls 2.3%  .N 

 (Reporting by Ragini Mathur)
 ((Ragini.Mathur@thomsonreuters.com;))