15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More

13. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 50

The data center power market holds significant opportunity, and Enphase Energy is one name that could benefit from it. On June 18, Barclays analyst Christine Cho upgraded the stock from Underweight to Equal weight with a price target of $51.00 (from $30).

In particular, Barclays upgrade reflects opportunity for Enphase in solid-state transformers, or SSTs. The firm estimates that this could represent an estimated $2 billion annual US market by the late 2020s.

The investor note pointed out that hyperscalers are migrating to 800-volt direct-current power architectures to support denser server racks. This could make SSTs a core component of the power system and replace or displace traditional transformers.

Unlike legacy hardware, SSTs resemble inverters in functionality – leveraging active power conversion and control – which plays directly to ENPH’s technical strengths.

However, this opportunity could take time to develop, which is why the firm currently has an Equal weight rating, suggesting a balanced rating.

Enphase Energy, Inc., and its subsidiaries, designs, develops, manufactures, and sells home energy solutions. The stock is being increasingly tied to the AI boom due to its Solid-State Transformer platform that can supply highly efficient power conversion infrastructure directly to massive data centers.