TXN - Monolithic Power Systems May Have Decided A Change In Direction Is Needed

Summary

• The stock has rallied in recent months in an uptrend, but the trend may have been broken if the charts are anything to go by.
• MPWR is set to grow earnings by an impressive 66% in FY2022, but the outlook suggests demand is starting to falter and a downturn is close at hand.
• Multiples for MPWR are higher than most due to its superior growth, which could become a problem if growth fades away.
• Slowing growth, an industry downturn, high multiples, and charts all suggest to stay on the sidelines with the stock likely heading lower.

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