Why Power Integrations (POWI) Is Up 5.4% After Announcing NVIDIA Partnership and New PowiGaN AI Tech

• At the 2025 OCP Global Summit, Power Integrations announced its collaboration with NVIDIA and unveiled new PowiGaN™ gallium-nitride technology designed for high-efficiency AI data centers and 800-VDC architectures.
• This partnership highlights the company's push into next-generation data center and electric vehicle markets, sectors experiencing strong demand for advanced, energy-efficient power conversion solutions.
• We'll examine how the NVIDIA collaboration and PowiGaN technology launch may reshape Power Integrations' future growth prospects.

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Power Integrations Investment Narrative Recap

To own shares of Power Integrations, you need confidence in the company’s long-term ability to move beyond its core appliance business and gain a foothold in high-growth sectors like AI data centers and electric vehicles. The recent unveiling of PowiGaN gallium-nitride technology and partnership with NVIDIA is potentially significant for securing design wins in these emerging end markets, but the most immediate challenge remains the company’s concentration in appliance sales and ongoing exposure to global trade risks.

Among the recent updates, the NVIDIA collaboration stands out as the most relevant to today's AI and data center catalyst, as it directly targets Power Integrations’ need to diversify revenue and capture greater value in new, expanding markets. This move provides validation for the company's proprietary GaN technology and aligns with the ongoing shift toward higher-efficiency power solutions in critical infrastructure.

However, it’s important for investors to keep in mind that, despite this exciting collaboration, a major risk to watch is how dependent Power Integrations still is on appliance sales, especially if...

Read the full narrative on Power Integrations (it's free!)

Power Integrations' narrative projects $634.3 million in revenue and $96.7 million in earnings by 2028. This requires 12.8% yearly revenue growth and a $63.1 million earnings increase from the current $33.6 million.

Uncover how Power Integrations' forecasts yield a $60.80 fair value, a 34% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community reveals just two fair value opinions ranging between US$55.00 and US$60.80. However, concentrated exposure in appliances and global trade uncertainty could limit progress even in the face of new technology partnerships. Explore these different investor views to see how your outlook compares.

Explore 2 other fair value estimates on Power Integrations - why the stock might be worth as much as 34% more than the current price!

Build Your Own Power Integrations Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Power Integrations research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Power Integrations research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Power Integrations' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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