Power Integrations, Inc. (POWI)

In the past six months, Power Integrations' stock has experienced a notable decline. In Q3 2025, the company reported earnings per share (EPS) of $0.36, surpassing estimates, and revenue rose 2.7% year-over-year. Power Integrations projected a potential sequential decrease in Q4 2025 revenue due to seasonality and softness in the consumer and industrial segments. Balu Balakrishnan is retiring as CEO in 2025, with Jennifer Lloyd currently serving as CEO, and Nancy Erba was appointed as the new CFO. Power Integrations is collaborating with NVIDIA on an 800V DC architecture for AI data centers, with production slated for late 2026. The board declared a dividend increase of $0.005 to $0.215 per share, effective in 2026. Channel inventory increased to 9.8 weeks from 7.6 weeks, with management expecting significant sell-through in Q4. POWI has underperformed both the US Semiconductor industry and the overall US market over the past year.

Power Integrations experiences demand seasonality, with Q4 revenue guidance typically reflecting a sequential decline in both consumer and industrial businesses. The company's consumer business is expected to see a recovery by 2026 as existing inventory clears. The industrial segment has shown strength, driven by trends in electrification and grid modernization. Power Integrations is shifting its research and development efforts towards high-growth areas such as data centers, automotive, and high-power applications. The company's GaN-based product revenues experienced a significant surge in the first half of 2025, with a return to growth expected in 2026. Power Integrations maintains strong pricing power due to its differentiated and value-added products.

Power Integrations, Inc. is a semiconductor technology company specializing in high-voltage power conversion, designing, developing, manufacturing, and marketing analog and mixed-signal integrated circuits and other electronic components. Their products include AC-DC conversion products, LED drivers, gate drivers, and motor drivers, with a focus on automotive solutions for EVs. A key differentiator is its proprietary Gallium-Nitride (GaN) technology, PowiGaN™.

Headquartered in San Jose, California, Power Integrations has a global presence with operations and sales across North America, Europe, the Middle East, Africa, and the Asia-Pacific region. It has subsidiaries and offices in countries such as the United Kingdom, Canada, Germany, Italy, and Japan.

Power Integrations maintains a strong brand reputation as a leading innovator in high-voltage power conversion and a crucial supplier for power-related semiconductors. The company is recognized for driving megatrends in Silicon Carbide (SiC) and Gallium Nitride (GaN) technologies. Its products are considered fundamental to the clean-power ecosystem, promoting renewable energy generation and efficient power consumption. Power Integrations' stock is included in clean-technology indices, and analysts generally hold a positive view of the company.

Power Integrations' ownership is largely concentrated among institutional investors, who collectively hold over 80% of the company's stock. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Neuberger Berman Group LLC, State Street Corp., Wellington Management Group Llp, Disciplined Growth Investors Inc /mn, and JPMorgan Chase & Co. The largest individual shareholder is Balu Balakrishnan, and insiders collectively hold approximately 2.16% of the stock.