The NVIDIA of Data Center Power Chip Stocks? And Next 10-For-1 Stock Split Candidate? MPWR Analysis

[@chipstockinvestor]

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[@SigFigNewton]

Im staying away due to valuation metrics. My tendency to do that is part of why I get so much value out of this channel. You remind me to question my tendency to over focus on valuation. “Yo, self, am I making the mistake Buffet called out of preferring fair companies at a great price over great companies at a fair price?” And you give me new insights that help me understand why higher valuations may be deserved in some instances, such as the lack of need for huge cap ex on fabs and the ability of such companies to see more dramatic profitability increases in up cycles. This is just a wordy thank you. Thanks.

[@bluebadgersec]

I tripped over MPWR yesterday while doing some screening. I really liked the Rev and GPM CAGR, but this look into business and market segment will probably make me a buyer. Thanks!

[@santiagorestrepo8460]

Nk/kc your content is amazing! Loyal viewers know that and don’t care about clickbait titles. Keep naming videos whatever you want. One of the best channels in Tech

[@chipstockinvestor]

Thanks Santiago, we appreciate it!

[@Lasereyes87]

So much details, so deep analysis. Thank you for your afford 🙂

[@jr0812]

Spectacular insights 🙏🎉 Both of you look great with vacation vibes ✌️ It brings new perspectives and energy to the channel 🌻

[@RoTelnCheese]

Nice to have you guys back. I hope you had a great holiday

[@chipstockinvestor]

We did! Thank you!!

[@julielaw520]

Thank you for the analysis and info; putting it on my watchlist!

[@chipstockinvestor]

Thanks for watching Julie, hope you find the info helpful!

[@julielaw520]

@@chipstockinvestor I certainly did, thanks!

[@rahulchahal3824]

Excellent analysis guys

[@mikev9578]

I just started looking into this stock a few months ago and will start a position pretty soon

[@11101Jason]

Great insights! I was just starting to ask myself while listening what do they get it. Sure enough you jumped right into the explanation and now I get it. Thanks!!

[@chipstockinvestor]

Nice, glad we got the question answered Jason!

[@shannonoliver7992]

I’ve been trying to find a chip company looking at energy efficiency. This is going to play a larger role than we realize. EROEI is an important consideration. I’ll be taking a closer look at this company. Kudos to you Nick for having the courage and insight to look at your own biases. That’s an important life and business skill . Respect! What a gift to have a partner that keeps you honest and balanced. Kudos to you Kasey. As Kasey said “ Let’s do it “ 🎉😂

[@IftikharKhan-fy3oj]

One important piece of information you probably missed is the fact that their (MPWR) 67% business is in China+Taiwan. With the new tariffs on Chinese Tech industries from USA and EU may have an effect on the revenue.

[@chipstockinvestor]

We covered that in previous videos, one of the reasons we never bought, but they've been diversifying

[@jamilbiotech91]

Pleaaaaasssssse update. This is under a lot of pressure

[@chipstockinvestor]

quickest update is over on Discord

[@jamilbiotech91]

@ perfect thanks

[@juliedavis9292]

I just read about photon powered neural network microchips that run on a thousandth as much energy as common electron-powered chips - produced by HIMX for example. What are your thoughts about that technological innovation and the potential market impact?

[@chipstockinvestor]

Hi Julie, do you have a link to share for the Himax product? We are aware of some of these new photonics chips, very promising. Big breakthroughs like this take a great deal of time to make their way to commercialization, sometimes many years or even decades.

[@pierrever]

CANON is also an specialist of this kind of chips 👍🤑

[@bigmountain19]

Using finchat now! I might have to get on that bandwagon

[@chipstockinvestor]

We hope you like it! We're finding it useful.

[@michaelbrown-nz4on]

🥇

[@christophevandesande9749]

@chipstockinvestor what do you guys think about recent developments? Q3 report and outlook for Q4? And the edgewater report? Which to me seems like a lot of assumptions and much to do about nothing in the end

[@jeffj8825]

Amazing company. Pays a dividend and has a solid dividend cagr too. What's your views on the valuation? They also have no debt

[@chipstockinvestor]

Did you see the reverse DCF analysis at the end of the video?

[@SigFigNewton]

“Finding new types of equipment” that need power chips Are they gonna keep finding new types of equipment, or might growth be expected to slow as growth becomes more dependent upon growth of the end markets they already serve?

[@chipstockinvestor]

Yes, eventually it won't grow as fast, but it isn't necessarily about finding new equipment, but rather existing equipment that could benefit from their smaller and higher performing power chips.

[@jr0812]

Question: Does MPS have a market share in the Consumers (PC) & smartphones market segment?

[@chipstockinvestor]

We actually answered that question in the video!

[@kylemac6221]

MPWR --- capped at 20x Sales and almost 160x OpCashFlow.

[@chipstockinvestor]

It isn't "cheap" at all, but it is also at the bottom of a cycle though too.

[@azulsimmons1040]

95 times earnings and 30 plus times sales. Another lovely stock with insane valuations riding the AI chip hype. How fast can they grow to make that valuation feel right and will their valuation keep rising to stay insane as their earnings and sales rise? Hard to know.

[@chipstockinvestor]

More like 20x expected current year sales, but yes still, valuation is assuming impressive earnings growth.

[@azulsimmons1040]

@@chipstockinvestor DCA is probably the way for the long-term story. I can't put too much in these crazy valuation as when the crash comes, I can't have that much capital at risk.

[@Hashtag-Hashtagcucu]

100.000 GPU order could be an impressive number while 100.000 in 1kW power supplies doesn’t move the needle

[@EllyMoody]

Can Nvidia still grow from 3T? Will they become a 10T company? Make a video about that we're waiting

[@chipstockinvestor]

We have something planned, know that's what everyone wants!

[@EllyMoody]

@@chipstockinvestor Thanks!

[@hafeld8348]

Great analysis. However your headline mentions a possible 10 for 1 split. I didn't hear anything about that. Thoughts?

[@chipstockinvestor]

Right at the beginning of the video

[@hafeld8348]

@@chipstockinvestor Thanks. I missed the first few minutes.

[@themusic6808]

Seems to be the pattern. Nvidia just did one, Broadcom is doing a 10 to 1 next month and Lam Research is doing a 10 to 1 split in October. ASML is another one that could be due.

[@MrYas18]

Any thoughts on LSCC - Massively down atm

[@chipstockinvestor]

Just addressed that last week: kzbin.info/www/bejne/Z3vOoItmrd2Za7s

[@javier5766]

How does it compare to SMCI?

[@chipstockinvestor]

No comparison, SMCI assembls parts, MPWR is an engineer of power chips

[@cyfrowymuza]

is this Monolithic Power company comparable to Vertiv ?

[@chipstockinvestor]

It isn't, Monolithic does power chips, Vertiv makes power delivery and cooling systems. So Vertiv might be a buyer of Monolithic chips.

[@randomsitisee7113]

8% terminal is not reasonable. 5% tops

[@sirus312]

My pure storage growing too slow?! lol

[@chipstockinvestor]

Lol the financials maybe just not keeping up with the stock price, right?

[@carahulsrivastava9279]

Why NVIDIA is going down

[@RK-um9tu]

Stock has gone up 190% over the past year. For this reason, people cashing in some their profits. Nvidia should start climbing again this week...

[@tafferezewdie]

I watch every video and I really appreciate your insights but I don’t think you gave a fair valuation of ARM. How come you miss opportunity

[@chipstockinvestor]

We aren't investing in a stock price, we're investing in businesses. ARM still trading for 100X EXPECTED earnings per share. What opportunity exactly are we missing? We like the business, but the valuation seems way off, and so we passed, and are still passing.

[@tafferezewdie]

@@chipstockinvestor 3X opportunity from its IPO.

[@Hashtag-Hashtagcucu]

Please stop this nonsense of headlines “The Next NVIDIA..” The NVIDIA of ..” I really appreciate❤ your channel by the quality of the content but I feel insulted in my intelligence by this kind of titles.

[@chipstockinvestor]

Sorry, no intention to insult you, however the vast majority of potential viewers don't click on our videos. We'll keep trying to dial things in. Appreciate your support!

[@11101Jason]

Lol just keep doing what you're doing, I like that you're getting your channel more exposure and NVDA references are a good way to do that, this is how the youtube algorithm works keep taking advantage and keep em coming!! Love you guys!

[@mohammedmudassirshaikh557]

you are pretty late to the game, kids. Well, better late than never !

[@chipstockinvestor]

Knew someone would say this! Nick started covering the company four years ago... and unfortunately didn't pull the trigger then.