What Happened?
Shares of semiconductor designer Power Integrations (NASDAQ: POWI) jumped 1.8% in the afternoon session as positive momentum continued after the company announced a collaboration with NVIDIA and detailed its new, more efficient PowiGaN gallium-nitride technology for next-generation AI data centers.
The announcement, made at the 2025 OCP Global Summit, revealed that Power Integrations was working with NVIDIA to speed up the shift to 800-volt direct current power systems required for power-hungry AI servers. The company's new 1,250-volt and 1,700-volt PowiGaN chips were shown to achieve over 98% efficiency and offer greater power density than competing devices. This breakthrough helped simplify server designs and reduce costs. The technology also targeted the growing market for 800-volt electric vehicle powertrains, positioning the company for growth in multiple high-demand sectors.
After the initial pop the shares cooled down to $48.36, up 2.7% from previous close.
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What Is The Market Telling Us
Power Integrations’s shares are very volatile and have had 22 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 1 day ago when the stock gained 4.9% on the news that 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.
Power Integrations is down 20.4% since the beginning of the year, and at $48.36 per share, it is trading 28.9% 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 $798.68.
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