• Earlier this week, Power Integrations announced ultra-slim 15 W and 35 W auxiliary power supply reference designs tailored to NVIDIA’s Kyber 800 VDC AI data center architecture, using its InnoMux-2 ICs to cut board space and bill of materials by about 30 percent while maintaining at least 88 percent efficiency.
• By offering a compact alternative to bulkier silicon carbide-based designs for internal data center components, the company is aiming to embed its technology deeper into next-generation AI infrastructure and broaden its role in high-efficiency power conversion.
• We’ll now examine how these new Kyber-optimized reference designs might influence Power Integrations’ investment narrative around high-voltage GaN and AI data centers.

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Power Integrations Investment Narrative Recap

To own Power Integrations, you need to believe its high-voltage GaN and mixed-signal ICs can gradually offset present weakness in consumer appliances and justify a premium valuation. The new Kyber-optimized reference designs support that thesis by tying the product roadmap more closely to AI data center architectures, but they do not change the near term dependence on cyclical appliance demand or the execution risk around winning and scaling large AI design wins.

The most relevant nearby event is the upcoming Q2 2026 earnings release on August 5, which gives you a timely checkpoint on how AI data center, industrial and appliance trends are flowing into orders and margins. When you put that alongside the Kyber news, it sets up an important contrast between early technical traction in AI infrastructure and the still-limited visibility on when these designs may begin to meaningfully influence revenue mix.

Yet, investors should also be aware that if AI data center adoption stalls or key design wins do not materialize as hoped, then ...

Power Integrations' narrative projects $652.6 million revenue and $134.3 million earnings by 2029.

Uncover how Power Integrations' forecasts yield a $73.60 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Some of the lowest analysts were already assuming about US$658 million of 2029 revenue and US$93 million of earnings, yet still see slower GaN adoption and lumpier margins as real threats, so if you are weighing this Kyber update against those more cautious views, it is worth remembering how widely professional expectations can differ and how much these forecasts may shift as AI data center orders actually develop.

Explore 4 other fair value estimates on Power Integrations - why the stock might be worth less than half the current price!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Power Integrations research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Power Integrations research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Power Integrations' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.