• In early June 2026, Power Integrations introduced two ultra-slim auxiliary power supply reference designs for 800 VDC AI data centers, including 15 W and 35 W flyback units using 1,700 V PowiGaN-based InnoMux-2 ICs optimized for NVIDIA’s Kyber liquid-cooled blade-rack architecture.
• By shrinking footprint, cutting bill-of-materials count, and maintaining at least 88% efficiency across line and load, these designs aim to free space and enhance reliability for densely packed AI power distribution boards.
• We’ll now examine how this push into ultra-compact, PowiGaN-based AI data center power supplies could reshape Power Integrations’ investment narrative.

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Power Integrations Investment Narrative Recap

To own Power Integrations, you need to believe its shift from appliance-heavy roots toward higher value GaN solutions in AI data centers and industrial markets can offset near term volatility in earnings and margins. The new Kyber-optimized PowiGaN designs support that narrative but do not remove key risks around customer concentration, tariff exposure, and execution in new segments, which still look like the main short term swing factors for the stock.

Among the recent announcements, the Q1 2026 update stands out: management called out 23% industrial revenue growth and highlighted PowiGaN as a core focus for AI data centers, EVs and renewables. That context matters here because the Kyber-oriented designs are a concrete example of that high voltage GaN roadmap showing up in products aimed directly at one of the company’s most talked about potential growth areas.

Yet against that opportunity, investors should also weigh how concentrated end markets and slower GaN adoption could still limit the upside if...

Power Integrations' narrative projects $634.3 million revenue and $96.7 million earnings by 2028. This requires 12.8% yearly revenue growth and a $63.1 million earnings increase from $33.6 million today.

Uncover how Power Integrations' forecasts yield a $51.00 fair value, a 34% downside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts see far more risk here, even before this Kyber news, assuming revenue of about US$658,000,000 and earnings of roughly US$92,600,000 by 2029, and you can use those tougher assumptions to stress test your own view of how much this AI data center push might really matter.

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

Reach Your Own Conclusion

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.