Right now, two technology stocks stand out for their rebound to kick off 2025. Shares are appreciating strongly after getting crushed in the final quarter of 2024. Below, I’ll detail what caused these names to come under pressure in the first place and why things are starting to look up. All 2025 return and market capitalization figures use prices as of the Feb. 11 close.
Monolithic Power Systems: Worst-Case Scenario Avoided With Customer NVIDIA
The $33 billion semiconductor company Monolithic Power Systems MPWR saw its share price fall massively near the end of 2024. In the final quarter of the year, shares dropped nearly 34%. The fall began on Oct. 30, when the company failed to raise guidance on its earnings report. Shares dropped over 17%.
Then, on Nov. 11, shares dropped nearly 15%. This was due to a research report that questioned the company’s relationship with NVIDIA NVDA. Monolithic makes the chips that regulate the use of power for NVIDIA’s advanced graphics processing units (GPUs). The report stated that NVIDIA would be significantly reducing or eliminating its use of Monolithic components for its upcoming Blackwell chips. Ultimately, the report was accurate, but the worst-case scenario didn’t play out. Analysts at Oppenheimer expect the company’s market share within NVIDIA to drop from 100% in 2024 to 50% in 2025. Infineon Technologies IFNNF is the company taking market share. Even though this is a big loss, it’s much better than the complete loss of the relationship that some feared.
Monolithic shares have continued to experience volatility in 2025, but overall, shares are up by 18%. The company’s Feb. 6 earnings report was a key contributor to the recovery. The company’s revenue and adjusted earnings per share (EPS) came in moderately above expectations. The company also announced it was increasing its quarterly dividend by 25% and announced a $500 million share buyback program. It also sees revenue for Q1 2025 rising 35% from Q1 2024. Analysts forecast only a 27% increase.
Five out of the company’s six end markets saw an acceleration in revenue growth compared to Q3 2024. This is important and reassuring, especially in light of the NVIDIA news. The company’s enterprise data segment has grown significantly. It now accounts for 31% of total revenue. Seeing strong growth in the other 69% of its business softens the blow of the reduction in the NVIDIA relationship. After the earnings report, MarketBeat tracked five price target updates. These updates indicate that Monolithic shares have solid potential upside of almost 15%.
Shares of Uber Technologies UBER also got hit hard in Q4 2024, dropping nearly 19%. Technically, Uber is in the industrials sector, but the app-based nature of its ride-hailing platform allows investors to also consider it a technology stock. Uber shares got hit hard on Oct. 31, as it released earnings. The company’s revenue and EPS were impressive compared to expectations, but shares still fell 9%.
A key performance indicator, gross bookings, missed the mark. It measures the value of purchases prior to deducting the earnings of drivers and other partners. Also, concerns about Tesla’s TSLA plan to join the ride-hailing market with self-driving cars put pressure on Uber shares. However, Uber’s share price has been on the mend to kick off 2024, surging over 27%.
News that the company would do a $1.5 billion accelerated share buyback program helped the stock appreciate in the first week of the year. The company’s next earnings report in Feb. was somewhat reminiscent of the one in October. Revenue, earnings, and gross bookings all beat, but shares still fell over 7%. Weak gross bookings guidance for Q1 2025 was the culprit. However, shares jumped 22% in three days after a famed investor revealed a large position in the company.
Billionaire Bill Ackman, founder of the Pershing Square Capital Management hedge fund, says the firm owns 30.3 million shares of Uber. That is a position worth over $2.3 billion. On the social media platform X, Ackman stated, “We believe that Uber is one of the best-managed and highest-quality businesses in the world. Remarkably, it can still be purchased at a massive discount to its intrinsic value.” This high praise from one of the most followed names in finance has gotten investors excited about Uber stock.
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The article “These 2 Tech Stocks Are Surging Back After a Q4 2024 Plunge” first appeared on MarketBeat.
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