Benchmark Endorses Power Integrations (POWI) Long-Term Play Despite 2025 Pullback

Power Integrations Inc. (NASDAQ:POWI) is one of the most oversold semiconductor stocks so far in 2025. Despite the stock’s pullback, Benchmark Company analyst David Williams reiterated a Buy rating and maintained his $70 price target on July 16, following his earlier commentary in May.

Williams’ stance reflects his confidence in the company’s operational footing and longer-term positioning. While the broader macro backdrop remains uneven, Power Integrations has shown consistency in its bookings and maintained lean inventory levels—both signs of disciplined execution amid industry-wide demand softness. The company’s latest quarterly results were broadly in line with expectations, supported by stronger gross margins and tight cost management.

Benchmark Endorses Power Integrations (POWI) Long-Term Play Despite 2025 Pullback

An automated manufacturing production line of semiconductor components on an assembly line.

The company is gaining good traction in the electric vehicle market, and that forms a key part of the analyst’s constructive view. Power Integrations is beginning to benefit from its investment in GaN technology, recently securing a notable design win in the EV space. According to Williams, this early success could signal a larger opportunity in automotive, as electrification trends continue.

Regarding the capital allocation strategy, the company continues to engage in share buybacks, supported by a solid balance sheet and strong cash flow generation. The analyst believes that the management’s ongoing repurchases suggest confidence in the long-term outlook.

Power Integrations Inc. (NASDAQ:POWI) is a semiconductor company that manufactures high-voltage integrated circuits for energy-efficient power conversion.

While we acknowledge the potential of POWI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than POWI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.