Power Integrations, Inc.
- Open
- 50.50
- Day high
- 50.77
- Day low
- 49.34
- Prev close
- 51.38
- Volume
- 67K
- Mkt cap
- $2.8B
- P/E (TTM)
- 110.0
- EPS (TTM)
- $0.46
- P/B
- 4.1
- P/S
- 6.2
- Yield
- 1.71%
- Per share
- $0.85
- ▼Insiders net selling -$936K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Power Integrations, Inc. (POWI) is a Technology company listed on NASDAQ. The stock is up 15% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
Power Integrations, Inc. (POWI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
POWI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.32 | $0.37 | +15.6% | $119M | +1.3% |
| May 7, 2026 | $0.23 | $0.25 | +8.7% | $108M | +1.5% |
| Feb 5, 2026 | $0.19 | $0.23 | +21.1% | $103M | -3.2% |
| Nov 5, 2025 | $0.34 | $0.36 | +5.9% | $119M | +6.9% |
| Feb 6, 2025 | $0.28 | $0.30 | +7.1% | $105M | +0.1% |
| Feb 8, 2024 | $0.15 | $0.22 | +46.7% | $90M | -0.7% |
| Aug 3, 2023 | $0.34 | $0.36 | +5.9% | $123M | +0.7% |
| May 4, 2023 | $0.24 | $0.25 | +4.2% | $106M | +0.8% |
| Nov 2, 2022 | $0.84 | $0.84 | +0.4% | $160M | -3.6% |
| Aug 4, 2022 | $0.99 | $1.03 | +4.3% | $184M | -4.3% |
| Apr 28, 2022 | $0.88 | $0.93 | +5.4% | $182M | -0.8% |
| Feb 3, 2022 | $0.76 | $0.83 | +9.4% | $173M | -0.2% |
POWI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 27, 2026 | Lloyd Jennifer Adirector, officer: President and CEO | Sell | 7,050 | $73.73 |
| Jul 27, 2026 | Lloyd Jennifer Adirector, officer: President and CEO | Sell | 5,640 | $73.73 |
| Jul 6, 2026 | Vig Ravidirector | Grant | 2,491 | — |
| Jul 6, 2026 | LOWE GREGG Adirector | Grant | 2,491 | — |
| Jul 6, 2026 | Arienzo Wendydirector | Grant | 2,491 | — |
| Jul 6, 2026 | Gioia Nancy Leedirector | Grant | 2,491 | — |
| Jul 6, 2026 | IYER BALAKRISHNAN Sdirector | Grant | 2,491 | — |
| Jul 6, 2026 | Ganti Anitadirector | Grant | 2,491 | — |
| Jun 2, 2026 | Gupta Sunilofficer: Sr. Vice President, Operations | Sell | 6,860 | $83.67 |
| May 29, 2026 | BRATHWAITE NICHOLASdirector | Sell | 1,728 | $86.62 |
| May 29, 2026 | BALAKRISHNAN BALUdirector | Sell | 95,287 | $86.25 |
| May 29, 2026 | BALAKRISHNAN BALUdirector | Sell | 29,000 | $87.05 |
| May 28, 2026 | Gupta Sunilofficer: Sr. Vice President, Operations | Sell | 15,894 | $82.18 |
| May 28, 2026 | BALAKRISHNAN BALUdirector | Sell | 47,863 | $80.93 |
| May 28, 2026 | BALAKRISHNAN BALUdirector | Sell | 70,710 | $82.26 |
Source: POWI SEC Form 4 filings, latest Jul 27, 2026. For informational purposes only — not investment advice.
See the full POWI insider & 13F page →Power Integrations, Inc. company profile
Overview
Power Integrations, Inc. (NASDAQ:POWI) is a semiconductor company founded in 1988 and headquartered in San Jose, California. The company went public in 1997 and has established itself as a specialized designer and manufacturer of analog and mixed-signal integrated circuits for power conversion applications. Under the leadership of CEO Balu Balakrishnan, who recently announced his retirement after 23 years at the helm, Power Integrations has evolved from a traditional power semiconductor company into a technology innovator focused on high-voltage power conversion solutions across consumer, industrial, automotive, and communications markets.
Business
Power Integrations operates in the power semiconductor industry, designing and manufacturing integrated circuits (ICs) that convert alternating current (AC) electricity from wall outlets into the direct current (DC) power that electronic devices require. Think of these chips as the "power managers" inside virtually every electronic device - from smartphone chargers to industrial motor drives. The company's core products fall into several categories. AC-DC power conversion products handle power supplies ranging from less than one watt (mobile device chargers) to approximately 500 watts (desktop computers, TVs, LED lighting). These chips are essential because most electronic devices need clean, regulated DC power, but electrical grids deliver AC power. The company's InnoSwitch and TOPSwitch product families are widely used in consumer appliances, computer power supplies, and LED lighting systems. Power Integrations also produces high-voltage gate drivers under the SCALE and SCALE-2 product families, which operate high-voltage switches like insulated-gate bipolar transistors (IGBTs) and silicon-carbide MOSFETs. These are crucial components in industrial motor drives, solar inverters, wind power systems, and electric vehicle charging infrastructure. Additionally, the company manufactures motor-driver ICs for appliances like refrigerator compressors, ceiling fans, and various pumps and blowers. The company's revenue is distributed across four main market segments: Consumer applications (37-44% of revenue) including appliances and consumer electronics; Industrial applications (33-36%) covering motor drives, renewable energy systems, and utility infrastructure; Computer applications (9-15%) focusing on server power supplies and notebook adapters; and Communications (10-27%) serving telecom infrastructure and networking equipment. A key strategic focus is Gallium Nitride (GaN) technology, representing the next generation of power semiconductors. GaN chips can switch faster and handle higher voltages more efficiently than traditional silicon, making them ideal for electric vehicle drivetrains, AI data center power supplies, and high-power industrial applications. The company expects GaN products to exceed 10% of total sales in 2025.
Revenue model
Power Integrations generates revenue primarily through product sales of its semiconductor chips to original equipment manufacturers (OEMs) and merchant power supply manufacturers. The company sells directly through its sales force and indirectly through a network of independent sales representatives and distributors worldwide. The business model benefits from several characteristics of the semiconductor industry. Once Power Integrations' chips are designed into a customer's product, there's typically a long design cycle (often 2-3 years) before the product reaches market, followed by multi-year production runs. This creates recurring revenue streams from successful design wins. The company's chips often represent a small portion of the total product cost but are critical for functionality, giving Power Integrations pricing power for differentiated solutions. Several factors influence the company's margins and profitability. Product mix significantly impacts gross margins, with higher-value solutions like GaN technology and automotive applications commanding premium pricing compared to commodity power supplies. Manufacturing efficiency affects costs, as the company uses a fabless model, outsourcing production to foundries primarily in Asia. Currency fluctuations, particularly the Japanese yen, can impact margins by 100-120 basis points for every 10% currency movement due to manufacturing exposure. Market cyclicality represents a major margin influence, as semiconductor demand fluctuates with economic cycles and inventory adjustments. The company experienced significant revenue volatility from 2022-2024, with quarterly revenues ranging from $90 million to $116 million as customers worked through excess inventory. Competition from larger semiconductor companies and specialized power IC manufacturers can pressure pricing, though Power Integrations' focus on high-voltage applications and system-level solutions provides some differentiation. Raw material costs and foundry capacity constraints can also impact manufacturing costs and availability.
Competitive moat
Power Integrations possesses a moderate but narrowing competitive moat based primarily on technical expertise, customer relationships, and market positioning in specialized high-voltage applications. The company's strongest competitive advantage lies in its deep expertise in high-voltage power conversion, particularly in applications above 600 volts where fewer competitors operate effectively. This technical specialization, built over 35+ years, creates barriers for new entrants who would need significant R&D investment and time to develop comparable expertise. The company benefits from design-in advantages where its chips become integral to customer products during long development cycles. Once designed in, switching costs are high due to re-engineering requirements, regulatory re-certifications, and reliability testing. Power Integrations has accumulated thousands of design wins across diverse applications, creating a broad revenue base that's difficult for competitors to replicate quickly. However, the moat faces several challenges. The power semiconductor industry includes much larger competitors like Infineon, Texas Instruments, and ON Semiconductor with greater R&D resources and manufacturing scale. These companies can potentially offer more comprehensive solutions and better pricing on high-volume applications. The shift toward GaN technology represents both an opportunity and a threat - while Power Integrations is investing heavily in GaN, larger competitors and specialized GaN companies like GaN Systems (acquired by Infineon) are also pursuing this market aggressively. The company's fabless manufacturing model provides flexibility but limits control over production costs and capacity compared to integrated device manufacturers. Additionally, as power conversion becomes more commoditized in some applications, pricing pressure increases. The automotive market, while representing a significant growth opportunity, also brings new competitors from the automotive semiconductor space who may have stronger relationships with car manufacturers. Overall, Power Integrations maintains a defensible position in specialized high-voltage applications, but the moat is not insurmountable and requires continuous innovation and market expansion to sustain competitive advantages.
Risks & safety
Power Integrations demonstrates a strong financial safety profile with minimal solvency risk, though valuation metrics suggest limited margin of safety at current prices. **Financial Strength:** • Zero debt with debt-to-equity ratio of 0.0 • Strong current ratio of 9.3x indicating excellent liquidity • Cash and short-term investments of $51 million with positive free cash flow generation • No cash burn concerns - company generated $64 million in free cash flow for fiscal 2024 **Valuation Metrics:** • P/E ratio of 81.7x based on recent quarterly earnings, significantly above historical averages • EV/EBITDA of 105x appears extremely elevated • Price-to-book ratio of 3.9x suggests premium valuation • Graham number of $6.71 versus current price around $59 indicates potential overvaluation **Other Considerations:** • Revenue volatility creates earnings unpredictability, with quarterly revenues fluctuating between $90-116 million • Cyclical semiconductor industry exposure amplifies valuation risk during downturns • Strong balance sheet provides downside protection but doesn't justify current premium pricing • Currency exposure to Japanese yen creates additional earnings volatility
Recent development
Power Integrations has undergone significant strategic evolution over the past few years, pivoting toward next-generation technologies and higher-growth markets. The most significant development is the company's aggressive push into Gallium Nitride (GaN) technology. Starting from minimal GaN revenue in 2022, the company now expects GaN products to exceed 10% of sales in 2025, with management targeting $100 million in GaN revenue by 2028. This represents a fundamental technology transition, as GaN semiconductors offer superior efficiency and performance compared to traditional silicon chips. The automotive market expansion represents another major strategic shift. The company has grown from minimal automotive exposure to having designs in production with 20 electric vehicle OEMs by 2024. Management expects automotive revenue to reach approximately $100 million by 2029, driven by applications in EV drivetrains, charging systems, and auxiliary power supplies. The development of 900-volt and 1700-volt GaN products specifically targets high-voltage automotive battery systems. Geographic expansion, particularly in India, has become a key growth driver. India now represents nearly 10% of total revenue, with significant design wins in smart metering, electric locomotives, and telecommunications infrastructure. This diversification reduces dependence on traditional markets like China, where the company has faced challenges in appliance and consumer electronics segments. The company has also expanded its high-power industrial capabilities through strategic acquisitions, including Odyssey Semiconductor to advance high-power GaN technology. New product introductions like BridgeSwitch 2 for motor drives and InnoMux-2 for multiple DC outputs demonstrate continued innovation in core power conversion markets. A significant leadership transition is underway, with CEO Balu Balakrishnan announcing his retirement after 23 years. The board has engaged an executive search firm to find a successor, with Balakrishnan expected to serve as executive chairman during the transition.
POWI company profile · for informational purposes only — not investment advice.
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