Power Integrations, Inc. research snapshot
POWI AI stock analysis currently reads Power Integrations as a high-quality high-voltage power conversion franchise that is testing the durability of its 2026 recovery after a sharp pullback. The stock closed at $60.71 on July 31, 2026, about 33% below a June 2026 peak near $91, leaving a market cap near $3.38 billion. Q1 2026 revenue of $108.3 million rose 3% year over year, non-GAAP EPS of $0.25 beat the $0.23 consensus, industrial revenue grew 23% year over year, and management guided Q2 revenue to $115 million to $120 million ahead of the August 5 earnings report. The counterpoint is that the stock fell below its 50-day moving average near $75, RSI sits near 38, short interest has risen to about 9.8% of shares out, and the forward P/E near 41x to 44x still expects a strong earnings recovery. This POWI AI stock forecast uses scenario ranges rather than a certain price prediction. It is an informational tool, not investment advice.
Current price
$60.71 close on July 31, 2026
Market cap
$3.38 billion
AI score
53 / 100
Rating
A high-quality power-conversion franchise with improving industrial demand and a data center option, balanced against a broken short-term uptrend, rising short interest, and a forward multiple that still expects a strong earnings recovery
Trend status
Fell about 33% from a June 2026 peak near $91 to the low $60s, now below the 50-day average near $75 but still above the 200-day average near $54
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Power Integrations designs high-voltage analog and mixed-signal ICs for power conversion across industrial, consumer, communications, and automotive applications, with a new entry into AI data center auxiliary power. Its EcoSmart, InnoSwitch, and PowiGaN technologies target energy efficiency across a wide range of end products. | High |
| Moat | The moat rests on 30+ years of high-voltage design expertise, a large patent portfolio, customer design-in qualification cycles that create switching costs, and a proprietary 1700 V single-HEMT GaN capability. The NVIDIA Kyber reference designs are an early proof point, but larger GaN competitors are investing heavily. | Medium-high |
| Management | CEO Jennifer Lloyd took over in July 2025, followed by new CFO, sales, marketing, legal, and people leaders with strong pedigrees. The balance sheet stayed debt-free, $671 million was returned to stockholders from 2022 to 2025, and a recent CEO stock sale of about $936,000 warrants monitoring. | Medium |
| Financial trend | TTM revenue through March 2026 was $446.3 million with TTM net income of $16.6 million, reflecting a deep cyclical trough. Q1 2026 revenue rose 3% year over year and 5% sequentially, non-GAAP EPS of $0.25 beat consensus, and Q2 guidance implies roughly 8.5% sequential growth. | High |
| Valuation | At $60.71, POWI trades near 202x TTM EPS, 7.6x sales, 5.0x book value, and near 40x free cash flow, with a forward P/E of roughly 41x to 44x. The about $257 million cash balance with no debt provides balance-sheet support, but the forward multiple still embeds a strong earnings rebound. | High |
| Technical trend | The stock ran from a February 2026 low near $31 to a June peak near $91, then retraced about 33% to $60.71. It now trades below the 50-day moving average near $75.09 while holding above the 200-day moving average near $54.36, with RSI near 38. | Medium |
| Risk level | Risk is high for a cyclical semiconductor stock. The main risks are an earnings miss or cautious guidance on August 5, a data center narrative that runs ahead of revenue, soft consumer demand, rising short interest near 9.8% of shares out, new-management execution risk, and a further de-rating if the recovery disappoints. | Medium-high |
| AI confidence | Confidence is high for descriptive facts and audited calculations, cross-checked across SEC filings, the earnings release, Google Finance, Yahoo Finance, and stockanalysis.com, and medium for chart levels, scenario prices, and the interpretation of the current cycle phase. | High data confidence |
| Investment certainty | Investment certainty is low to medium. POWI has a strong balance sheet and technology position, and the valuation is more reasonable after the pullback, but the August 5 earnings report and the still-depressed earnings base keep near-term certainty low. | Low to medium |
POWI AI stock forecast
The POWI AI stock forecast is a three-year scenario range, not a price promise. Using the July 31 close of $60.71 and an estimated forward EPS base of about $1.40 (consistent with the forward P/E of roughly 41x to 44x reported by Yahoo Finance and stockanalysis.com), the financial_rigor.py model produced anchor prices of $109 for the bullish case, $55 for the base case, and $21 for the bearish case. The displayed ranges are wider to reflect cyclical recovery, data center adoption, and multiple uncertainty.
$95 to $130
More likely if Q2 2026 results and guidance confirm a durable industrial and data center recovery, non-GAAP EPS compounds near 25% from the estimated forward base, gross margin holds near 55%, and investors pay a premium growth multiple near 40x on recovering earnings.
$48 to $68
More likely if EPS compounds near 12% from the estimated forward base, the recovery is gradual, gross margin stabilizes near 54%, and the market values POWI near a 28x forward multiple, a modest discount to current levels.
$15 to $28
More likely if the recovery stalls, consumer end-markets stay weak, data center revenue fails to scale, EPS compounds near 0% from the estimated forward base, and the market rerates POWI toward a 15x multiple on a depressed earnings base.
POWI AI technical analysis
POWI AI technical analysis uses the July 31, 2026 close of $60.71 as the reference. The stock fell about 33% from a June 2026 peak near $91 and now trades below its 50-day moving average of $75.09 while holding above the 200-day moving average of $54.36. RSI near 38 shows weak momentum approaching oversold. These levels are static references and should be checked against a live chart.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $60.71 | July 31, 2026 closing price, with about $60.01 traded intraday on August 3, 2026. Used for the market-cap and valuation calculations. |
| Near support | $58 to $60 | The early-August swing-low zone near $58.44. A hold above this area would help stabilize the pullback. |
| Major support | $54 to $56 | The 200-day moving average near $54.36. A sustained break below this level would end the intermediate-term uptrend. |
| Deeper support | $45 to $47 | The pre-rally consolidation zone near the May 2026 breakout, close to Northland’s $46 price target. |
| Near resistance | $64 to $68 | The July breakdown zone. POWI needs to reclaim this area to improve the short-term structure. |
| Major resistance | $74 to $76 | The 50-day moving average near $75.09. A move above this level would start repairing the short-term trend. |
| Upper resistance | $83 to $91 | The June peak area leading to the 52-week high of $91.18. This zone caps the advance until a new high is set. |
| Moving averages | 50-day near $75.09; 200-day near $54.36 | The price sits between the two averages, a neutral-to-cautious posture after the rally broke below the 50-day. |
| Momentum | RSI near 38 | Weak momentum approaching but not yet in oversold territory. Oversold bounces are possible but need confirmation. |
| Volume | About 690,000 shares average 20-day | Short interest is near 9.83% of shares out (5.48 million shares, up from 4.68 million a month earlier), adding squeeze and volatility risk. |
| Volatility | Beta 1.56; 52-week range $30.86 to $91.18 | The wide range and above-market beta call for disciplined position sizing in any rules-based framework. |
| Invalidation | Sustained close below $54 | A decisive break below the 200-day area would weaken the recovery setup and require a fresh earnings and demand review. |
POWI AI trading strategy
This POWI AI trading strategy is a rules-based framework, not personalized financial advice. It combines price confirmation with earnings results, end-market demand signals, gross margin recovery, and data center design-win progress.
Consider POWI only after it reclaims and holds the $64 to $68 zone or the 50-day moving average near $75, with confirmation from Q2 2026 earnings on August 5 and improving order commentary. In an established uptrend, pullbacks toward the 200-day moving average near $54 have historically offered better reward-to-risk entries.
A close below $52 on above-average volume is a warning. A break below the 200-day moving average near $54 weakens the medium-term recovery thesis.
If POWI approaches oversold RSI conditions and holds the $58 to $60 zone or the $54 to $56 area near the 200-day moving average, wait for a higher low and improving fundamentals before treating the pullback as a reversal. Require confirmation from the August 5 earnings report.
Do not average down purely because the stock has fallen. Require evidence that industrial and data center demand and earnings estimates are improving.
Track Q2 2026 earnings on August 5, 2026, revenue mix by end market, gross margin, NVIDIA Kyber data center design-win updates, distributor inventory levels, and analyst estimate revisions.
Lower confidence if revenue growth stalls, gross margin fails to hold near 54%, consumer weakness persists, or management guides below consensus.
Investment research summary
Customers pay Power Integrations for high-voltage power conversion ICs that make electronic products more energy-efficient, smaller, and more reliable. The value is deep analog and mixed-signal design expertise applied across industrial, consumer, communications, and automotive power applications, now extending into AI data center auxiliary power.
Power Integrations holds a strong position in high-voltage design, with a large patent portfolio, customer design-in qualification cycles that create switching costs, and a proprietary 1700 V single-HEMT GaN capability that the company describes as unique. The NVIDIA Kyber 800 VDC reference designs are an early proof point, but GaN competition from larger players is intensifying.
The thesis fails if the AI data center and industrial recovery narratives run ahead of actual revenue, consumer demand stays weak, or gross margin does not hold near 54%. TTM P/E near 202x and a forward multiple near 41x to 44x already discount a strong earnings rebound, leaving the stock exposed to disappointment or multiple compression. Rising short interest near 9.8% of shares out shows some investors doubt the recovery.
CEO Jennifer Lloyd took over in July 2025, followed by new CFO, sales, marketing, legal, and people leadership. The team brings strong pedigrees from Analog Devices, Infineon, onsemi, and Micron but is new to Power Integrations. The company kept a debt-free balance sheet, returned $671 million via dividends and buybacks from 2022 to 2025, and reported a recent CEO stock sale of about $936,000 that warrants watching.
Power Integrations sits at the intersection of electrification, renewable energy, AI data centers, and energy efficiency. The 800 VDC AI data center architecture is a new addressable market where its high-voltage GaN products have a credible entry point, and industrial demand grew 23% year over year in Q1 2026. The industry remains cyclical, and the magnitude of data center contribution to revenue is not yet disclosed.
At $60.71, POWI trades near 202x TTM EPS, about 7.6x sales, 5.0x book value, and near 40x free cash flow, with a forward P/E of roughly 41x to 44x. The balance sheet is a clear strength, with about $257 million of cash and no debt. The margin of safety depends on the earnings recovery actually materializing, because the current price still embeds a strong rebound.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| POWI price | $60.71 close on July 31, 2026; about $60.01 intraday on August 3, 2026 | Google Finance and stockanalysis.com price snapshot | August 3, 2026 |
| Market capitalization | $3.38 billion, verified as $60.71 x 55,720,000 shares | Google Finance, Yahoo Finance, financial_rigor.py | August 3, 2026 |
| TTM revenue | $446.28 million through March 31, 2026 | SEC 10-Q (XBRL) and Yahoo Finance | August 3, 2026 |
| TTM net income and EPS | $16.6 million net income; $0.30 GAAP EPS | SEC filings and Yahoo Finance | August 3, 2026 |
| TTM free cash flow | $84.51 million, or about $1.52 per share; operating cash flow $105.18 million less capex $20.67 million | stockanalysis.com statistics (S&P Global data) | August 3, 2026 |
| Q1 2026 operating data | $108.31 million revenue, $3.30 million GAAP net income, $0.25 non-GAAP EPS (beat $0.23 consensus); Q2 2026 guidance of $115 million to $120 million revenue | Power Integrations Q1 2026 earnings release and SEC 10-Q | August 3, 2026 |
| FY2025 results | $443.50 million revenue, up 5.9% year over year; $22.09 million net income, down 31.5% year over year | SEC 10-K filed February 6, 2026 | August 3, 2026 |
| Cash and debt | $257.2 million cash and short-term investments; no long-term debt | SEC 10-Q and Yahoo Finance | August 3, 2026 |
| Valuation snapshot | 202.37x TTM PE, 5.03x PB, 39.94x P/FCF, 7.58x PS, 41.40x to 44.05x forward PE, and 1.42% dividend yield | financial_rigor.py using Yahoo Finance and stockanalysis.com inputs | August 3, 2026 |
| Technical snapshot | 52-week range $30.86 to $91.18; 50-day MA $75.09; 200-day MA $54.36; RSI 38.12; beta 1.56; short interest 5.48 million shares (9.83% of shares out) | stockanalysis.com statistics (S&P Global data) | August 3, 2026 |
| Analyst consensus | Average price target $76.20; consensus Buy (Stifel $95, Benchmark $90, Needham $90, Susquehanna $85, Deutsche Bank $65, Argus $62, Northland $46) | Google Finance and Yahoo Finance analyst pages | August 3, 2026 |
This POWI page is an informational research tool, not investment advice, a recommendation, or a promise of returns. Forecasts are scenario estimates based on available data and can be wrong. Prices, technical levels, filings, and estimates should be rechecked before any financial decision.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
