Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds

6. Monolithic Power Systems, Inc. (NASDAQ:MPWR) 

3-Year Average Revenue Growth: 22.26%

Number of Hedge Fund Holders: 51

Monolithic Power Systems, Inc. (NASDAQ:MPWR) serves various sectors like computing, auto, data centers, and communications by designing and selling semiconductor-based power solutions. The company mainly focuses on DC-DC integrated circuits and power management systems used in cloud computing, storage, and vehicle applications.

In Q4 ended December 31, 2024, Monolithic Power Systems, Inc. (NASDAQ:MPWR) achieved record revenue of $621.7 million, an increase of 37% from last year. The company’s yearly revenue was $2.2 billion, growing 21% from 2023, which marks its thirteenth straight year of growth. This surge was driven by strong demand in the automotive, communications, and enterprise computing sectors. Moreover, data center demand bounced back, and cloud infrastructure expansion helped drive revenue gains. Monolithic’s full-year EPS rose to $36.59 from $8.76 in 2023, displaying better margins and efficient operations.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) also focused on growing its product lineup in 2024. It launched a silicon carbide inverter for high-power uses, with first sales expected by the end of 2025. Additionally, the company also introduced car audio products, advanced battery management systems, and precise analog-to-digital converters thus positioning Monolithic for market growth.

For the future, Monolithic Power Systems, Inc. (NASDAQ:MPWR) predicts growth in both the automotive and communications sectors from delayed design wins and new product launches in 2025. Yet the enterprise data market might stay flat early in 2025 before advancing later in the year.