Power Integrations boasts exceptional free cash flow conversion at 476% of net income and a perfect 9/9 Piotroski F-Score, but the stock has already exceeded its analyst price target with negative implied upside, and heavy customer concentration with 81% of revenue from the top ten customers adds meaningful fragility to the earnings outlook.
Thesis pillars
- Customer Geographic Double Concentration→Stable
- Analyst Target Exceeded Negative Upside→Stable
- Exceptional Cash Conversion Quality→Stable
- +1 more pillar — see the Why tab for full reasoning
Power Integrations, Inc. (POWI) Stock Analysis
Technology · Semiconductors
Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $50.45 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: top ten customers (81.0%); Concentration risk — Geographic: international sales (outside U.S.) (98.0%).
Power Integrations designs and markets analog and mixed-signal ICs for high-voltage power conversion, selling to industrial, consumer, computer, and communications end markets globally. Revenue comes from IC and gate-driver product sales to OEMs and distributors, with... Read more
Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $50.45 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: top ten customers (81.0%); Concentration risk — Geographic: international sales (outside U.S.) (98.0%). Chart setup: No clear chart pattern; technical signals are mixed. Score 4.5/10, high confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 61d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: speculative.
Recent developments
updated 2026-09-05Recent Developments — Power Integrations, Inc.
Latest news
- NEWS Power Integrations (POWI) Slips 3.8% as Key Resistance Holds; Support at $54.09 in Focus - Retail Sentiment - dars.gov.e — dars.gov.et negative
- NEWS Power Integrations (POWI) Projected to Release Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Power Integrations (NASDAQ:POWI) Trading Up 7.7% - Still a Buy? - MarketBeat — MarketBeat positive
- NEWS Power Integrations (POWI) Names Michael Balow SVP of Worldwide Sales - Insider Monkey — Insider Monkey positive
- NEWS Power Integrations (POWI) Names Michael Balow SVP of Worldwide Sales - Yahoo Finance — Yahoo Finance neutral
Generated 2026-09-05T19:52:01Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomertop ten customers81%10-K Item 1: 'Our top ten customers, including distributors that resell to OEMs and merchant power supply manufacturers, accounted for approximately 81%, 79% and 80% of net revenue in 2025'
- HIGHGeographicinternational sales (outside 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.'
- MEDIUMSupplierEpson, Lapis, X-FAB wafer foundries10-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)
- 2026-05-07Item 5.02LOWMike Balow appointed as SVP, Worldwide Sales, effective May 4, 2026. Previously served as EVP of sales at onsemi (2021-2025) and Infineon Technologies. No predecessor departure cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $50.45 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: top ten customers (81.0%); Concentration risk — Geographic: international sales (outside U.S.) (98.0%). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $46.96. Score 4.5/10, high confidence.
Take-profit target: $65.88 (+30.6% upside). Prior stop was $46.96. Stop-loss: $46.96.
Concentration risk — Customer: top ten customers (81.0%); Concentration risk — Geographic: international sales (outside U.S.) (98.0%); V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2).
Power Integrations, Inc. trades at a P/E of 114.7 (forward 26.9). TrendMatrix value score: 5.5/10. Verdict: Sell.
10 analysts cover POWI with a consensus score of 4.1/5. Average price target: $78.
What does Power Integrations, Inc. do?Power Integrations designs and markets analog and mixed-signal ICs for high-voltage power conversion, selling to...
Power Integrations designs and markets analog and mixed-signal ICs for high-voltage power conversion, selling to industrial, consumer, computer, and communications end markets globally. Revenue comes from IC and gate-driver product sales to OEMs and distributors, with approximately 98% from international customers in 2025 and top-10 customers representing ~81% of net revenue.