Artificial Intelligence systems call for tremendous amounts of memory. And highly rated memory-chip maker Monolithic Power Systems is among those at the forefront of this surging industry. On Wednesday, Monolithic Power stock got a key upgrade to its Relative Strength (RS) Rating, jumping 10 points from 68 to 78.
Regarding top and bottom line numbers, Monolithic Power Systems has posted rising EPS growth over the last seven quarters. Sales gains have also moved higher over the same time frame.
How To Invest In Stocks In Both Bull And Bear Markets
Monolithic Power's Ratings Overall Shine
Market research reveals that the market's biggest winners often have an RS Rating north of 80 in the early stages of their moves. See if Monolithic Power Systems can continue to show renewed price strength and clear that threshold.
Monolithic Power works with AI processor leader Nvidia and others to develop AI systems.
Among its other key ratings Monolithic Power has a best-possible 99 EPS Rating and an excellent 97 IBD Composite Rating. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better. Its B Accumulation/Distribution Rating shows that ETFs, insurance funds and the like are fairly avid buyers of its stock.
Monolithic Power Systems stock popped from a 438.86 low on April 8 as the market correction was ending to around 717 Wednesday afternoon. The Kirkland, Wash.-based chipmaker has room to run as it tries to retake its all-time high 959.64 set on Aug. 29 last year, according to MarketSurge chart analysis.
Among Top 5 In Its Industry
Over the past year, EPS growth rose from 12% to 32%, 42% and 44% last quarter to a hefty $4.04 per share. During that time sales rose 15% then 31%, 37% and 39% to $637.6 million last quarter. Analyst consensus is for 30% EPS growth on a 28% rise in revenue this quarter, according to FactSet.
Monolithic Power Systems holds the No. 2 rank among its peers in the 39-stock Electronics-Semiconductor Fabless industry group. Custom AI-chip maker Broadcom is the top-ranked stock in the group.
The unique IBD Relative Strength Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
RELATED:
Get Timely Buy & Sell Alerts With IBD Leaderboard
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
MarketSurge: Research, Charts, Data And Coaching All In One Place
