What Happened?
Shares of semiconductor designer Power Integrations (NASDAQ: POWI) fell 7.4% in the afternoon session after the company reported weak first quarter 2025 results, its inventory levels increased and revenue was only in-line with expectations. The result revealed muted sequential growth, as sales edged up just slightly from the prior quarter despite growing 15% year-over-year. Looking ahead, revenue guidance for next quarter was just in line as well. On the other hand, Power Integrations beat analysts' adjusted operating income and EPS expectations this quarter. Still, we think this was a mixed quarter. The market seemed to be hoping for more.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Power Integrations? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Power Integrations’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Power Integrations is down 8.6% since the beginning of the year, and at $55.50 per share, it is trading 29.3% below its 52-week high of $78.46 from July 2024. Investors who bought $1,000 worth of Power Integrations’s shares 5 years ago would now be looking at an investment worth $1,093.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
