The Quiet Architect of the Modern World VIEW IN BROWSER BY JASON BODNER, EDITOR, QUANTUM EDGE PRO Michael Hsing started an invisible revolution. It was the Roaring ‘90s. Companies and investors alike were jumping on dot-com mania. But Michael saw past the mania… and into the future. He realized the real game was computing power and the electronic devices required to advance it. Thirty years later, semiconductors underpin the ongoing tech revolution. And his company is at the center of it all. Michael grew up in China during its turbulent and violent Cultural Revolution. Not only were schools closed part of the time, but he was also diagnosed with a learning disability after coming to the U.S. as a 21-year-old exchange student. He was always fascinated by how things work. Thanks to help with his learning disability and his perseverance, intellect, and vision, Michael started Monolithic Power Systems (MPWR) in 1997. His vision was singular: to make power electronics devices smaller, smarter, and impossibly efficient. At the time, these devices were clunky, stitched together from an unwieldy mess of components and hemorrhaging energy efficiency. Giants in the semiconductor industry saw power management as a necessary evil – boring, stagnant, and less important than racing for faster processors and bigger memory. Hsing realized something they didn’t: Without power efficiency, technological innovation would hit a wall. He and his company set out to do what was thought to be impossible. Instead of patching together outdated power converters, they miniaturized and integrated them into sleek, monolithic chips, boosting efficiency while shrinking size. Monolithic Power’s impact on technology became increasingly evident during the consumer electronics explosion in the early 2000s. Laptops, smartphones, and gaming consoles demanded more power with less heat, and MWPR answered the call. The company’s chips silently crept into more and more devices, making them last longer, run cooler, and charge faster. Then came the cloud computing boom, electric vehicles, and now the AI revolution – all hungry for even greater power efficiency. Self-driving cars? Monolithic’s chips optimize battery life. Hyperscale power-hungry data centers? Monolithic makes them greener. 5G networks? Much faster, thanks to Monolithic’s ultra-efficient power modules. By the time other companies realized what was happening, MPWR had cemented itself as the quiet architect of the modern world – the leader and pioneer of a cornerstone technology on which other tech flourishes. Today, Monolithic Power Systems is the heartbeat of a world with a rapidly increasing power demand as AI, quantum computing, and more push technology further into the ever-expanding frontier. | Recommended Link | | | | One company to replace Amazon… another to rival Tesla… and a third to upset Nvidia. These little-known stocks are poised to overtake the three reigning tech darlings in a move that could completely reorder the top dogs of the stock market. Eric Fry gives away names, tickers and full analysis in this first-ever free broadcast. Watch now… |  | | Powering the Future – and Portfolios As indispensable as Monolithic Power is, it never became quite the household name like Intel (INTC), Advanced Micro Devices (AMD), or Nvidia (NVDA). But shares are up nearly 11,000% since MPWR went public in late 2004. The last few years have been choppier, which is why we’re back in for our second run in TradeSmith Investment Report. We booked 86% returns the first time around after buying on a pullback in September 2023 and riding shares higher until taking profits in October 2024. Then turbulence hit. Shares fell 50% from the end of October to the market’s lows in April this year on guidance, rumors about losing Nvidia as a client – which turned out to be false – and other overblown factors. 
As my friend and 40-year growth investing expert Louis Navellier likes to say, good stocks bounce like fresh tennis balls. When MPWR got hammered earlier this year, I knew we wanted to get back in after the dust settled. We did just that on April 10, two days after the market bottomed, and shares are up 66% for us in less than four months. This was not a typical trade for us. One of my favorite setups is buying into an uptrend but on a pullback, which diminishes risk and increases profit potential. This was not your average pullback, but quant data and money flows pointed to a rebound. It was what I call a “divergence” trade because of an unusual difference in the data. MPWR’s fundamental ratings in my Quantum Edge system were a stellar 83.4, but the technicals were weak at 41.2. With superior companies like Monolithic Power, that gap almost always narrows in favor of price action – and therefore the Technical Score – moves higher to better reflect the fundamental strength. It was also unusual because I like to see Big Money inflows when I buy or recommend a stock. In this case, money was flowing out – as with pretty much every other stock in the market. My Quantum Edge system showed outflows everywhere. But outflow signals – unusually heavy selling – tell us something, too. I showed readers the chart below, illustrating how sell signals – the red bars – often mark or precede a reversion higher. 
Source: MoneyFlows.com This is another way to leverage the power of money flows. In fact, I expect to see more of this kind of setup in the next couple of months as stocks take a breather in both seasonal weakness and after a stretch of unsustainably high inflows. What’s Next for MPWR We’ve made good money already in MPWR, but the data points to higher prices in the future. The Quantum Score tells you everything you need to know, and MPWR sits firmly in the buy zone at 81. 
Source: TradeSmith Finance The fundamentals and technicals provide confirmation of strength in the business and price action. Both are exactly what I like to see. Especially that beefy Fundamental Score of 83.4. The technicals fluctuate more, especially in volatile markets, so the fundamentals are the foundation. Shares have surged 75% since the April lows, and Big Money started buying again as my system registered two inflow signals to start August. Last Friday’s signal is especially noteworthy because it was a fairly big down day for the market after a weak jobs report and the reintroduction of tariffs. 
Source: MoneyFlows.com With August and September historically bumpy months for stocks and the market just now coming out of being overbought, the data points to increased volatility and likely pullbacks in the coming weeks. I view any pullbacks as buying opportunities in stocks with superior fundamentals and favorable money flow data. MPWR fits the bill. Talk soon, 
Jason Bodner
Editor, Quantum Edge Pro Note from Michael Salvatore, Editor, TradeSmith Daily: Dedicated TradeSmith readers and users are well aware that 2025 has been the “Year of the Breakthrough” for our firm. It started with our new Seasonality software and the Seasonal Edge strategy in January. It continued with our Snapback strategy and our proven call for a Mega Melt Up in March. And it kept rolling with TradeSmithGPT in June. With each passing day, we discover new ways to optimize the market’s moves and better service our customers. And with each new breakthrough, TradeSmith cements itself as a financial technology leader whose accomplishments are only accelerating. That leads me to what’s coming next week… Our CEO, Keith Kaplan, is set to announce yet another major trading breakthrough – this time in the realm of quantitative trading algorithms and order flow. A rare combination of signals is leading us to a big investment theme for the coming years which cannot be ignored. Look to this Saturday’s TradeSmith Daily for the first official word on this new development from Keith and prepare for our big announcement next week. | 
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