How Monolithic Power's Stock Performance Compares to Its Tech Sector Rivals

When hunting for strong performers within the Computer and Technology sector, it’s worth zeroing in on companies that are beating their competition. Monolithic Power Systems (MPWR) has emerged as one worth watching this year. By analyzing how the monolithic chip-maker’s stock has fared against comparable Computer and Technology companies, a clearer picture emerges about its market positioning.

Within the Computer and Technology sector—which encompasses 611 individual stocks and ranks #3 overall among 16 sector groups tracked by Zacks—monolithic power solutions provider MPWR holds particular significance. The Zacks ranking system evaluates stocks based on earnings estimate revisions and identifies companies showing improving profit outlooks. MPWR currently carries a Zacks Rank of #2 (Buy), signaling strong potential. Over the past quarter, analyst consensus expectations for MPWR’s annual earnings climbed 1.4%, demonstrating strengthening conviction about the company’s trajectory.

Year-to-Date Returns: A Competitive Edge

The numbers tell an interesting story about MPWR’s relative strength. The company has delivered approximately 30.5% in returns since the start of the year, outpacing the Computer and Technology sector’s average gain of 29.4%. This positions monolithic power systems among the sector’s standout performers.

FormFactor (FORM), another Computer and Technology stock, has similarly impressed, posting 31.5% year-to-date gains. FormFactor’s consensus earnings estimate has risen 2.6% over the same three-month window, and it too carries a Zacks Rank #2 (Buy) designation. Both stocks reflect analyst optimism about their respective earnings potential.

The Industry Lens: Where MPWR Stands

Digging deeper into industry-specific performance provides additional context. MPWR belongs to the Semiconductor - Analog and Mixed subsector, a specialized group containing 10 companies currently ranked #24 among all tracked industries. Stocks within this monolithic technology niche have surged an average 40.7% year-to-date, which means MPWR is actually lagging slightly behind its peers within this narrower industry classification.

FormFactor, by contrast, competes in the Electronics - Semiconductors space, a larger 47-stock industry ranked #66. That sector has advanced 44.1% year-to-date, where FormFactor’s gains are moderately below the group average.

What’s Next for Tech Stock Watchers?

As investors continue evaluating Computer and Technology opportunities, both monolithic-based chip suppliers like MPWR and comparables like FormFactor merit ongoing observation. The combination of improving earnings estimates, strong year-to-date performance, and solid sector rankings suggests both companies could sustain their momentum heading forward. However, the distinction between sector-level and industry-level performance demonstrates why nuanced analysis matters—a stock can outpace its broader sector while underperforming its specialized industry peer group.