TXN - Why Monolithic Power Systems May Be Heading For A Correction

• MPWR has been growing for many years, but the stock has ratcheted to another gear after the company raised its guidance.
• MPWR makes it clear that it's raising guidance due to temporary and non-recurring factors and not because of a change in underlying fundamentals.
• The pulling in of revenue into Q3 opens the door for a future correction, both in quarterly revenue and the stock itself.
• The price action since mid-September looks unsustainable since it seems to be driven by a misunderstanding of why guidance was raised.

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