What Happened?
Shares of semiconductor designer Power Integrations (NASDAQ:POWI) jumped 4.9% in the afternoon session after the stock's positive momentum continued as the company detailed its new, more efficient PowiGaN gallium-nitride technology for next-generation AI data centers and announced a collaboration with NVIDIA.
At the 2025 OCP Global Summit, the company explained that its industry-first 1250 V and 1700 V PowiGaN technology supported the transition to 800 VDC power architectures needed for power-hungry AI systems. Power Integrations revealed it was working with NVIDIA to speed up this shift. The company's new chips were shown to be more efficient, achieving over 98% efficiency, and offered greater power density compared to competing silicon carbide devices or stacked gallium-nitride transistors. This breakthrough helped simplify the design of server racks, use space better, and reduce the amount of copper needed. The advanced technology also had applications beyond data centers, targeting the growing market for 800-V electric vehicle powertrains and charging infrastructure, which positioned the company to gain share in high-growth markets.
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What Is The Market Telling Us
Power Integrations’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 23 hours ago when the stock gained 20.2% on the news that the company detailed its collaboration with NVIDIA to advance its PowiGaN gallium-nitride technology for next-generation AI data centers.
Power Integrations is down 24% since the beginning of the year, and at $46.19 per share, it is trading 32.1% below its 52-week high of $68.05 from November 2024. Investors who bought $1,000 worth of Power Integrations’s shares 5 years ago would now be looking at an investment worth $761.25.
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