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Power Integrations, Inc. (POWI) Stock Analysis

SellVALUE-TRAP 2/5High Confidence

Technology · Semiconductors

Earnings in 7 days (2026-05-07). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $71.40, A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: customers outside of the U.S. (98.0%); Concentration risk — Supplier: Epson, Lapis and X-FAB.

Power Integrations designs and markets analog and mixed-signal ICs for high-voltage power conversion, used in AC-DC power supplies for consumer electronics, appliances, industrial equipment, EVs, and LED lighting. Approximately 98% of net revenue in each of 2025, 2024, and 2023... Read more

$71.40+4.9% A.UpsideScore 4.7/10#34 of 45 Semiconductors
Stop $66.23Target $74.70(resistance)A.R:R -2.0:1
Analyst target$57.60-19.3%5 analysts
$74.70our TP
$71.40price
$57.60mean
$45
$75

Sell if holding. At $71.40, A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: customers outside of the U.S. (98.0%); Concentration risk — Supplier: Epson, Lapis and X-FAB. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.7/10, high confidence.

Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 7d<=7d. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
Risks
Concentration risk — Geographic: customers outside of the U.S. (98.0%)
Concentration risk — Supplier: Epson, Lapis and X-FAB
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)178.7
P/E (Fwd)37.8
Mkt Cap$3.9B
EV/EBITDA73.5
Profit Mgn5.0%
ROE3.1%
Rev Growth-1.9%
Beta1.29
Dividend1.23%
Rating analysts11

Quality Signals

Piotroski F7/9

Options Flow

P/C0.29bullish
IV102%elevated
Max Pain$25-65.0% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHGeographiccustomers outside of the U.S.98%
    10-K Item 1A: 'Approximately 98% of our net revenue for each of the years ended December 31, 2025, 2024 and 2023 was generated by sales to customers outside of the U.S.'
  • HIGHSupplierEpson, Lapis and X-FAB
    10-K Item 1A: 'Our primary supply arrangements for the production of wafers are with Epson, Lapis and X-FAB.'

Material Events(8-K, last 90d)

  • 2026-02-05Item 2.05MEDIUM
    Power Integrations disclosed a restructuring charge (item 2.05) in 8-K filed February 5, 2026 covering events of February 1, 2026. Specific restructuring details in the body were truncated; no further detail available.
    SEC filing →
  • 2026-01-30Item 5.02LOW
    Compensation Committee approved amendment to 2025 Inducement Award Plan on January 27, 2026, increasing reserved shares by 500,000 to total 850,000. Routine equity plan amendment.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.9
Value Rank
3.2
Quality Rank
3.7

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Pe
0.0
Forward Pe
2.9
Analyst Target
3.0
Ps
4.3
Peg Ratio
7.9
Forward P/E: 37.8xPEG: 0.85
GatesA.R:R -2.0=NEGATIVEEARNINGS PROXIMITY 7d<=7dMomentum 4.9<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.9>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
75 · Overbought
20D MA 50D MA 200D MAGOLDEN CROSSSupport $50.08Resistance $76.22

Price Targets

$66
$75
A.Upside+4.6%
A.R:R-2.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-29.6% upside)
! Negative risk/reward — downside exceeds upside
! EARNINGS_PROXIMITY:7d<=7d

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-07 (7d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is POWI stock a buy right now?

Sell if holding. At $71.40, A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: customers outside of the U.S. (98.0%); Concentration risk — Supplier: Epson, Lapis and X-FAB. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $66.23. Score 4.7/10, high confidence.

What is the POWI stock price target?

Take-profit target: $74.70 (+4.9% upside). Prior stop was $66.23. Stop-loss: $66.23.

What are the risks of investing in POWI?

Concentration risk — Geographic: customers outside of the U.S. (98.0%); Concentration risk — Supplier: Epson, Lapis and X-FAB; Analyst target reached - limited upside remaining.

Is POWI overvalued or undervalued?

Power Integrations, Inc. trades at a P/E of 178.7 (forward 37.8). TrendMatrix value score: 3.6/10. Verdict: Sell.

What do analysts say about POWI?

11 analysts cover POWI with a consensus score of 4.1/5. Average price target: $58.

What does Power Integrations, Inc. do?Power Integrations designs and markets analog and mixed-signal ICs for high-voltage power conversion, used in AC-DC...

Power Integrations designs and markets analog and mixed-signal ICs for high-voltage power conversion, used in AC-DC power supplies for consumer electronics, appliances, industrial equipment, EVs, and LED lighting. Approximately 98% of net revenue in each of 2025, 2024, and 2023 came from customers outside the U.S., primarily in Asia where power supplies are manufactured.

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