Power Integrations Inc logo

Power Integrations Inc(POWI)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$54.46
10/02/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for POWI

10/02/2026: POWI (2-star) is currently NOT-A-BUY. Pass it for now.

Power Integrations is a semiconductor company specializing in high-voltage, energy-efficient power conversion integrated circuits. The company has a leading position in proprietary power-management technology, which is highly valued for its efficiency in consumer and industrial electronics. Its primary growth opportunity lies in the transition toward automotive electrification and the broader adoption of renewable energy technologies. However, investors must consider risks related to its cyclical exposure to consumer electronics, intense competition from large semiconductor firms, and potential valuation sensitivity. The stock may best suit investors seeking a high-quality semiconductor name with a conservative balance sheet and a consistent dividend, while monitoring for growth signals in the automotive sector.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers moderate growth driven by secular electrification trends but lacks the rapid scaling of high-growth software or AI firms.
Momentum investorStrong fit while signal remains positivePerformance is highly sensitive to semiconductor cycle timing; momentum investors should monitor sector-wide upturns.
Value investorStrong fitThe company's strong balance sheet and history of high margins often appeal to value investors looking for quality semiconductor exposure.
Dividend investorStrong fitConsistent profitability and a conservative payout policy make it a reliable choice for dividend growth investors.
Low-risk investorMixed fitWhile the balance sheet is excellent, exposure to semiconductor cyclicality introduces volatility that may exceed conservative risk thresholds.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highSemiconductor stocks are inherently cyclical and prone to significant price swings based on inventory cycles.
Valuation riskMediumPremium valuation may contract if growth rates decelerate in the core consumer or industrial segments.
Competition risk (Diversified Semi Competition)Medium / highLarge competitors like Texas Instruments can use their scale to pressure pricing in core markets.
Business qualityStrongHigh-margin, patent-protected technology and a strong cash position indicate high business quality.
Dividend incomeLowDividends are well-supported by cash flows and are unlikely to face significant near-term risk.
Execution riskMediumSuccess depends on continuously innovating in GaN and high-voltage power management to stay ahead of competition.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 12.73%
Avg. Invested days 37
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/02/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
POWI receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
POWI has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong cash generation (FCF margin 19.6%) is partially offset by negative earnings growth (-31.5%), moderate revenue growth (+5.9%), soft profitability (net margin 5.0%).

Financial Health Rating

★★★★★
POWI's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 50.2%). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is POWI's strongest growth driver at +36.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (+5.9%, moderate) and earnings growth (-31.5%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 113.6% and approximately 98.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.69% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 15.61%
Vanguard Portfolio Management, LLC 9.29%
Wellington Management Company LLP 6.44%
State Street Corp 5.72%
Vanguard Capital Management, LLC 4.49%

Unit Economics (Per $1K Revenue)

★★★★★
POWI generates approximately $545 of gross profit, $48 of operating income, and $196 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins and strong cash conversion support a 3-star rating, while capital efficiency is weak.

Economic Dimensions

★★★★★
Effective Tax Rate: -5.31% (Tax Credit)

Quantitative Style Profile

★★★★★
POWI has a liquid profile. Weak momentum is the primary drawback, while soft valuation.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.88B USD
Price to earnings Ratio 117.05
1Y Target Price 77.5
Price to earnings Ratio 117.05
1Y Target Price 77.5
Volume (30-day avg) 834.2K shares
Beta 1.53
52 Weeks Range 30.33 - 90.80
Updated Date 10/02/2026
52 Weeks Range 30.33 - 90.80
Updated Date 10/02/2026
Dividends yield (FY) 1.64%
Basic EPS (TTM) 0.44

How Company Makes Money

Business areaWhat it includesRetail investor read
Consumer ElectronicsAC/DC converter chips for smartphones, laptops, and home appliances.The largest revenue driver, but highly susceptible to consumer spending cycles.
Industrial and AutomotiveGate drivers for EVs, renewable energy inverters, and industrial motors.The key long-term growth story driven by electrification and renewable energy.

Analyzing Revenue: Products, Geography and Growth

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 117.05
Forward PE 25
Enterprise Value 2.61B
Price to Sales(TTM) 6.4
Enterprise Value 2.61B
Price to Sales(TTM) 6.4
Enterprise Value to Revenue 5.82
Enterprise Value to EBITDA 54.8
Shares Outstanding 55.87M
Shares Floating 55.01M
Shares Outstanding 55.87M
Shares Floating 55.01M
Percent Insiders 1.69
Percent Institutions 113.55

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Power Integrations Inc

Exchange NASDAQ
Headquarters San Jose, CA, United States
IPO Launch date 1997-12-12
President, CEO & Director Dr. Jennifer A. Lloyd Ph.D.
Sector Technology
Industry Semiconductors
Full time employees 877
Full time employees 877

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion. It provides a range of alternating current to direct current power conversion products that address power supply up to approximately 500 watts of output for consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, consumer and industrial applications, and LED lightings; and power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric locomotives, and high-voltage DC transmission systems. The company also offers InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, it provides motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, and circulation pumps, as well as pumps and fans used in appliances, such as dishwashers, laundry machines, and boilers. The company serves communications, computer, consumer, and industrial markets. It sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.