• In June 2026, Power Integrations introduced two ultra-slim auxiliary power supply reference designs for 800 VDC AI data centers, including a 15 W single-output and a 35 W six-rail design, both leveraging 1700 V PowiGaN-based InnoMux-2 ICs for compactness and high efficiency.
• By tailoring these GaN-based reference designs to NVIDIA’s Kyber liquid-cooled blade-rack architecture, the company is aiming to cut board space and bill-of-materials complexity for next-generation AI data center power systems.
• Next, we’ll assess how this Kyber-optimized GaN launch influences Power Integrations’ investment narrative around high-voltage AI data center opportunities.

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Power Integrations Investment Narrative Recap

To own Power Integrations, you need to believe its high-voltage GaN technology can diversify the business beyond cyclical appliances and justify a premium valuation despite recent margin pressure and tariff exposure. The Kyber-optimized 1700 V PowiGaN reference designs add credibility to its AI data center ambitions but do not yet resolve the near term risk that design wins with key OEMs remain uncertain and earnings are coming off a weak base.

Among recent developments, the appointment of Michael Balow as Senior Vice President of Worldwide Sales in May 2026 looks particularly relevant here, as effective commercialization will be critical if the new Kyber-focused GaN offerings are to translate into meaningful AI data center revenue and help offset concentration in appliance-driven consumer markets.

Yet against the promise of AI data centers, investors should still watch the risk that trade frictions and tariff changes could...

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

Uncover how Power Integrations' forecasts yield a $51.00 fair value, a 39% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts already expected revenue to reach about US$675,100,000 and earnings US$139,000,000 by 2029, so this Kyber-focused GaN launch could either reinforce or challenge those higher expectations depending on how you read the competitive and geopolitical risks.

Explore 4 other fair value estimates on Power Integrations - why the stock might be worth as much as $85.00!

Form Your Own Verdict

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.