Power Integrations (POWI)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
$50.45-0.18%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
Warn: Primary pillar under pressure — Achieve revenue between $115M and $120M: Q3 rev $122M-$130M vs $120M target.
Power Integrations designs key power conversion chips. It aims to keep gross margin near 54%. Revenue guidance targets about $117.5M next quarter. Profit margins and cost control are stable.
Revenue growth lags guidance with Q1 below $115M target. The recent 23.5% price drop shows investor concern. Operating expenses remain pressured. Growth may slow.
The price is about 57% above our fair value near $44. Analysts expect 15% revenue growth, but our model forecasts a decline. The market is too optimistic on growth.
Breaks if: gross margin falls below 53.5% next quarter
Breaks if: operating expenses exceed $56M next quarter
Breaks if: revenue falls below $115M next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent revenue growth and margin maintenance. The current thesis is intact, despite some recent declines in company momentum and quality metrics.
The market appears to be pricing in a durable premium compared to peers, indicating high expectations for continued performance. The current valuation is considered expensive, with an expectations gap suggesting that some growth is already anticipated.
Management is on track to achieve its revenue and operating expense targets, although gross margin maintenance shows mixed results. The near-term risk of missing earnings is low, but there is a history of earnings surprises trending down.
The long-term thesis hinges on key factors such as management's ability to maintain guidance, potential Federal Reserve rate cuts, and the performance of sector leaders like NVDA, TSM, and AVGO. Any negative guidance could significantly impact sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improvement. There are no new threats identified that could weaken the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Overall, POWI's fundamentals are stable, but the elevated valuation and risks warrant close monitoring. Not investment advice.