Power Integrations (PWI) AI Stock Analysis

Power Integrations

(Frankfurt:PWI)

Rating:―N/A

Action:N/A

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Positive Factors

Debt-free balance sheetAn essentially debt-free balance sheet gives Power Integrations substantial financial flexibility during semiconductor cycles. Low leverage reduces refinancing and interest burdens, allowing the company to preserve cash, fund research and development, and respond to changing demand without relying heavily on external financing.

Negative Factors

Depressed net marginProfitability has recovered much less than revenue, with net margin materially below earlier-cycle levels. This compression suggests that the current sales rebound is not yet translating efficiently into earnings, limiting near-term profit expansion and leaving results more sensitive to product mix, operating costs, and semiconductor demand fluctuations.

Power Integrations (PWI) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.45B
Dividend Yield: 1.74%
Average Volume (3M): 146
Price to Earnings (P/E): 96.4
Beta (1Y): 0.47
Revenue Growth: -5.24%
EPS Growth: -29.18%
Country: Germany
Employees: 877
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Power Integrations Business Overview & Revenue Model

Company Description

Power Integrations, Inc. is a global leader in the development, manufacturing, and sale of analog and mixed-signal integrated circuits (ICs), alongside other essential electronic components and circuitry. Their primary expertise lies in delivering so...

Power Integrations Earnings Call Summary

Earnings Call Date:May 06, 2026(Q1-2026)|% Change Since:-30.75%|Next Earnings Date:Nov 03, 2026

Earnings Call SentimentPositive

The call conveyed more positive operational and financial momentum than negative items. Revenue grew modestly with stronger industrial performance, sequential margin expansion, improved cash generation, clear product and customer traction (notably in industrial, automotive and early data center engagements), and constructive guidance for Q2. The principal negatives were elevated inventory days, restructuring charges, continued softness in compute/communications and consumer year-over-year decline driven by prior-year pull-ins, plus macro and FX uncertainty that temper visibility. On balance, highlights outweigh the lowlights, with management outlining credible strategic actions and near-term guidance that point to improving execution.

Positive Updates

Quarterly Revenue Growth

Q1 revenue of $108.3 million, up 3% year-over-year and 5% sequentially versus Q4.

Negative Updates

Consumer Segment Year-over-Year Weakness

Consumer revenue was down versus Q1 2025 (prior year had tariff-related pull-ins), though Q1 showed a 17% sequential recovery as inventory builds cleared; company expects consumer to be flat-to-modestly-up in Q2.

Company Guidance

Management guided Q2 revenue of $115–$120M (midpoint +8.5% sequentially) after a Q1 with $108.3M in revenue and $0.25 non‑GAAP EPS; Q1 non‑GAAP gross margin was 53.5% (up 20 bps sequentially) and Q2 gross‑margin guidance is 54–55% (midpoint ≈ +100 bps). Q1 non‑GAAP OpEx was $45.3M (below prior outlook) and Q2 OpEx is forecast at $47M ± $0.5M, implying a non‑GAAP operating‑margin target of 13.5–15.5% (Q1 was 11.7%, +200 bps sequentially). Additional metrics: non‑GAAP net income $13.9M, GAAP restructuring charges $6.6M, cash from operations $20M, free cash flow $18M, Q1 CapEx $2M with 2026 CapEx plan of 5–6% of revenue, inventory down $4M and days on hand down 21 days to 292 (target <200), channel inventory down 0.5 week to 8.9 weeks (target 8), and management expects seasonally higher revenue and margin in Q2, OpEx roughly flat in H2, and long‑term OpEx growth at less than half the rate of revenue growth.

Power Integrations Risk Analysis

Power Integrations disclosed 6 risk factors in its most recent earnings report. Power Integrations reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Risks Related to Ownership of Our Common StockQ4, 2025

2.General Risk FactorsQ4, 2025

3.Risks Related to Financial PerformanceQ4, 2025

Power Integrations Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:PWI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPWR	74Outperform	$59.54B	66.54	24.04%	0.62%	40.49%	-53.68%
ON	68Neutral	$27.90B	45.36	8.38%	―	-3.14%	44.55%
DIOD	66Neutral	$3.69B	42.62	4.53%	―	17.80%	36.28%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AOSL	53Neutral	$696.41M	-16.29	-0.02%	―	-2.48%	56.59%
NVTS	50Neutral	$2.21B	-6.37	-61.50%	―	-46.40%	-104.24%

* Technology Sector Average

Performance Comparison

DE:PWI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:PWI	Power Integrations	41.72	5.55	15.34%
AOSL	Alpha And Omega Semiconductor	22.98	-5.42	-19.08%
DIOD	Diodes Inc	80.13	26.87	50.45%
MPWR	Monolithic Power Systems	1211.63	214.39	21.50%
ON	ON Semiconductor Corporation	71.67	21.21	42.03%
NVTS	Navitas Semiconductor Corporation	8.48	-3.77	-30.78%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Power Integrations AI Stock Analysis