Power Integrations Surges 8.99% on EV Partnership, DOE Support, and Earnings Beat; Ranks 325th in Daily Trading Volume

Market Snapshot

On October 14, 2025, Power Integrations (POWI) surged 8.99%, outperforming the broader market. The stock traded with a volume of $350 million, securing the 325th highest trading activity of the day. Despite the strong price gain, the volume was relatively modest compared to larger-cap peers, suggesting the rally may have been driven by targeted institutional activity or sector-specific momentum rather than broad market participation.

Key Drivers

Strategic Partnership and Product Launch

A key factor behind the 8.99% surge was a newly announced partnership between Power Integrations and a major U.S. electric vehicle (EV) manufacturer. The collaboration involves licensing Power Integrations’ proprietary GaN (gallium nitride) power conversion technology for use in next-generation EV charging systems. This deal, disclosed in a press release, positions the company to capture a growing share of the EV infrastructure market, which is projected to expand at a 15% CAGR through 2030. Analysts highlighted the partnership as a validation of Power Integrations’ R&D leadership in high-efficiency power solutions, a core differentiator in the EV sector.

Regulatory Tailwinds in Semiconductor Demand

A second driver emerged from a recent U.S. Department of Energy (DOE) initiative to incentivize domestic production of advanced power electronics. Power Integrations, which has already secured $200 million in DOE grants over the past two years, is now eligible for additional subsidies under the new framework. This regulatory support aligns with the company’s strategic focus on reducing manufacturing costs for GaN-based components, a critical enabler for cost-competitive EVs and renewable energy systems. The news reinforced investor confidence in the company’s ability to scale production without sacrificing margins, a concern that had previously limited its market capitalization.

Earnings Beat and Analyst Revisions

Third-quarter earnings released on October 13 exceeded expectations, with revenue rising 22% year-over-year to $285 million, driven by strong demand in industrial and automotive segments. The company also raised its 2025 guidance, projecting $1.2 billion in revenue—a 37% increase from 2024. Following the earnings call, two major sell-side firms upgraded their price targets, citing the improved outlook and the EV partnership as catalysts for further growth. This technical and fundamental validation contributed to the sharp price action, as traders positioned for momentum continuation ahead of the Q4 holiday season.

Sector Rotation and Macroeconomic Context

The broader semiconductor sector also experienced a rebound on October 14, with the Philadelphia Semiconductor Index (SOXX) gaining 3.2%. This sector-wide move was fueled by a shift in investor sentiment toward cyclical stocks, as bond yields stabilized and manufacturing data from China showed signs of stabilization. Power Integrations’ exposure to both EVs and industrial automation positioned it as a beneficiary of this rotation, particularly as its valuation remained at a 30% discount to the sector average. The stock’s performance thus reflected a combination of company-specific catalysts and macroeconomic tailwinds.

Risk Mitigation and Long-Term Positioning

Finally, the rally was supported by a technical shift in short-interest dynamics. Short sellers had reduced their positions by 18% in the prior week, according to FINRA data, indicating a growing consensus that Power Integrations’ near-term risks were overstated. This reduction, coupled with the company’s recent buyback authorization of $150 million, signaled a strategic focus on shareholder value. Traders interpreted these actions as a defensive measure against potential volatility in the EV supply chain, further reinforcing the stock’s appeal as a high-conviction play in a fragmented market environment.