Enphase (ENPH) Tumbles 14% on Weak Q3 Revenue Outlook

We recently published Wall Street’s 10 Worst Performing Stocks. Enphase Energy, Inc. (NASDAQ:ENPH) is one of the worst performers on Wednesday.

Enphase Energy fell by 14.16 percent on Wednesday to end at $36.48 apiece as investor sentiment was dampened by a weak revenue outlook for the third quarter of the year.

In a statement, Enphase Energy, Inc. (NASDAQ:ENPH) said that it expects revenues for the current quarter to end as low as $330 million or increase to as high as $370 million.

Quarter-on-quarter, this would translate to expectations of either a 9 percent drop or a 1.2-percent increase.

According to Enphase Energy, Inc. (NASDAQ:ENPH) remains a key headwind for the company, but said that it was exploring steps to diversify its supply chain and reduce reliance on Chinese components, where tariffs are steep.

In the second quarter of the year, Enphase Energy, Inc. (NASDAQ:ENPH) achieved a 242-percent jump in net income at $37 million versus the $10.8 million in the same period last year.

Revenues were also higher by 19.8 percent to $363 million from $303 million year-on-year.

While we acknowledge the risk and potential of ENPH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ENPH and that has 10,000% upside potential, check out our report about this cheapest AI stock.