Two Tech Stocks Rebounding Strongly After Q4 2024 Slump
usage of power for NVIDIA’s advanced graphics processing units (GPUs). The report speculated that NVIDIA would be reducing or eliminating its use of Monolithic components for its upcoming Blackwell chips. Although this report turned out to be true, the worst-case scenario did not materialize. Analysts predict that Monolithic’s market share within NVIDIA will drop from 100% in 2024 to 50% in 2025, with Infineon Technologies taking over some market share. Despite this significant loss, it is a better outcome than the complete loss of the relationship that some had feared.
In 2025, Monolithic shares have seen fluctuations, but overall, they are up by 18%. The company’s earnings report on Feb. 6 played a crucial role in this recovery. The company’s revenue and adjusted EPS exceeded expectations. They also announced a 25% increase in their quarterly dividend and a $500 million share buyback program. Additionally, they forecast a 35% increase in revenue for Q1 2025, higher than analysts’ expectations of a 27% increase.
Five out of six of the company’s end markets experienced accelerated revenue growth compared to Q3 2024. This growth is reassuring, especially considering the news about NVIDIA. Monolithic’s enterprise data segment, accounting for 31% of total revenue, saw significant growth. The company’s strength in the remaining 69% of its business helps offset the impact of the reduction in the NVIDIA relationship. Following the earnings report, MarketBeat reported that five price target updates suggest Monolithic shares have a potential upside of almost 15%.
Uber: Ackman’s Multi-Billion-Dollar Position Boosts Shares
Uber Technologies UBER is technically in the industrials sector, but its app-based ride-hailing platform positions it as a technology stock as well. Uber shares faced a drop of nearly 19% in Q4 2024. Despite impressive revenue and EPS performance in the earnings report released on Oct. 31, Uber shares fell 9% due to missed expectations in gross bookings, a key performance indicator. Additionally, concerns about Tesla’s plan to enter the ride-hailing market with self-driving cars added pressure to Uber shares.
In the beginning of 2025, Uber saw a surge of over 27% in its share price following news of a $1.5 billion accelerated share buyback program. In the subsequent earnings report in February, Uber beat revenue, earnings, and gross bookings expectations, but shares still dropped over 7% due to weak gross bookings guidance for Q1 2025. However, shares rebounded with a 22% increase after billionaire Bill Ackman revealed Pershing Square Capital Management’s large position in Uber.
Ackman’s announcement of owning 30.3 million Uber shares worth over $2.3 billion brought positive attention to the company. Ackman praised Uber as one of the best-managed businesses, available at a bargain compared to its intrinsic value. This endorsement from such a prominent figure in finance generated optimism among investors regarding Uber stock.
