Nvidia and TSMC to unveil first domestic wafer for Blackwell chips, Axios reports
SAN JOSE - Power Integrations (NASDAQ:POWI), a $2.07 billion market cap semiconductor company whose stock has declined over 11% in the past week, has detailed the advantages of its PowiGaN gallium-nitride technology for next-generation AI data centers in a new white paper released at the 2025 OCP Global Summit. According to InvestingPro analysis, the company maintains a strong financial position with more cash than debt on its balance sheet.
The company is collaborating with NVIDIA to accelerate the transition to 800 VDC power and megawatt-scale racks, according to a press release statement. The white paper focuses on the performance benefits of Power Integrations’ 1250 V and 1700 V PowiGaN technology for 800 VDC power architectures. With a healthy gross profit margin of 54.83% and strong liquidity ratios, the company appears well-positioned to support its technological initiatives.
The document highlights that a single 1250 V PowiGaN switch delivers greater power density and efficiency compared to stacked 650 V GaN FETs and competing 1200 V silicon carbide devices. The company claims its technology can meet efficiency requirements exceeding 98% for the 800 VDC architecture.
"With rising AI power demands, moving to an 800 VDC input simplifies rack design, makes more efficient use of space and reduces copper usage," said Roland Saint-Pierre, vice president of product development at Power Integrations.
The white paper also features the company’s InnoMux-2-EP ICs as a solution for auxiliary power supplies in 800 VDC data centers. These devices incorporate a 1700 V PowiGaN switch supporting 1000 VDC input voltage.
Power Integrations reports it has more than 175 million GaN switches currently in use across various applications including fast chargers, data centers, and electric vehicles. The company introduced its first GaN ICs in 2018 and claims to be the only supplier of high-voltage 1250 V and 1700 V GaN switches in volume production.
The 800 VDC architecture is being developed to address increasing power requirements in AI data centers. Trading at a P/E ratio of 61.24, Power Integrations represents an interesting player in the semiconductor space. Discover more detailed analysis and 12 additional key insights about POWI in the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Power Integrations reported its financial results for the second quarter of 2025, where it missed earnings per share (EPS) estimates but exceeded revenue forecasts. The company posted an EPS of $0.35, slightly below the expected $0.36, while revenue reached $116 million, surpassing the anticipated $115.02 million and reflecting a 9% increase from the previous year. Despite these mixed results, Benchmark maintained its Buy rating but lowered its price target to $55.00 from $70.00, citing macroeconomic and tariff-related challenges. In personnel changes, Chief Financial Officer Sandeep Nayyar announced his departure effective October 4, after a 15-year tenure with the company. Robert Eric Verity, the Senior Director of Finance, will serve as interim CFO until a permanent successor is appointed. Both Benchmark and Stifel have reiterated their Buy ratings on the stock amidst these developments. Power Integrations also reaffirmed its third-quarter financial outlook, initially provided in early August. These updates reflect the company’s ongoing efforts to navigate current market conditions while maintaining investor confidence.
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