Monolithic Power Systems, Inc. (NASDAQ: MPWR) engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers and notebooks, monitors, infotainment applications, and medical equipment. It also offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors and value-added resellers, as well as directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers in China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is based in Kirkland, Washington.

Company Overview

• Market Cap: 30.465 Billion
• PE Ratio: 68.97
• EPS: 9.22
• Dividend Yield: 0.63%

Analysts expect robust sales and earnings next year for MPWR, at 16.8% and 15.7% respectively. The stock is trading at a good value compared to historic P/E ratios over the last five years—41.3 to 140.1. Monolithic Power has the only “A” financial health grade from Morningstar on this list, and it has outpaced the S&P 500 by an average of nearly 20 percentage points per year over the last five years. It pays a 0.63% dividend. Therefore, MPWR is the best semiconductor stock for long-term investors.