Monolithic Power Systems (NASDAQ: MPWR) is a chip stock that isn’t nearly as talked about as some other companies in its industry, like NVIDIA (NASDAQ: NVDA) or Taiwan Semiconductor Manufacturing (NYSE: TSM). But that doesn’t mean the company hasn’t had great success over the years. It has been able to amass a value of nearly $28 billion, a number that looks much smaller after the last few weeks. Since Oct. 29, the company has lost over 39% of its value.
However, regardless of what the market says, it’s fair to question whether this massive drop justifies itself. Has the company’s intrinsic value really dropped by $18 billion in a mere two weeks, or is the market overreacting to recent news?
