Exploring Power Integrations, Inc. (POWI) Investor Profile: Who’s Buying and Why?

You're looking at Power Integrations, Inc. (POWI) and seeing a semiconductor stock that has been on a wild ride, dropping nearly 45% from its 2024 high to its November 2025 price of around $32.29 per share, and you have to wonder who is still buying and why they're willing to pay a premium. The short answer is: the smart money is betting on the future of high-voltage power conversion, even as near-term profits get squeezed; BlackRock, Inc. and Vanguard Group Inc. are the top institutional holders, controlling over 14.1 million shares combined as of the third quarter of 2025, signaling a deep conviction in the long-term narrative.

Honestly, the financials are a mixed bag right now-Q3 2025 revenue came in at a solid $118.92 million, beating estimates, but Q2 net income plummeted by 71.8% year-over-year to just $1.37 million, which explains the stock's volatility. The big players are looking past that, focusing on the company's gallium nitride (GaN) technology, which is defintely a key building block for next-generation 800-volt electric vehicle (EV) systems and high-efficiency AI data centers. The core thesis is that a $1.77 billion market cap company with a P/E ratio of 66.1x is priced for massive future growth, not current earnings, and that's a bet on the global energy transition.

Who Invests in Power Integrations, Inc. (POWI) and Why?

You're looking at Power Integrations, Inc. (POWI) and trying to figure out who's driving the stock and what their endgame is. The direct takeaway is that POWI's investor base is overwhelmingly institutional-think BlackRock and Vanguard-who are buying into the long-term, secular growth story of high-voltage Gallium Nitride (GaN) semiconductors, despite near-term cyclical headwinds in the core appliance business.

As of late 2025, institutional investors hold a dominant position, controlling approximately 103.1% of the float. This high percentage, which is common for stocks with significant institutional backing, shows that nearly all available shares are locked up by major funds, meaning the stock is less susceptible to the whims of retail day traders. Insider ownership, by contrast, is a smaller but still relevant 1.49%.

Here's a snapshot of the key investor breakdown, which is defintely skewed toward large money managers:

• Institutional Investors: The largest block, representing over 100% of the float, primarily consisting of passive index funds and large active managers.
• Mutual Funds: A significant subset of institutional ownership, with holdings increasing to around 86.52% as of March 2025.
• Retail Investors: The remaining float, often acting as a liquidity source but not the primary price driver.
• Insiders: Company executives and directors, whose modest 1.49% ownership is a factor, but not the main one.

The Institutional Anchor: Who Holds the Bulk of POWI?

The investor profile for Power Integrations, Inc. is defined by a deep bench of institutional giants. These are the long-term holders, the ones who file 13F reports with the SEC. For example, major holders include firms like BlackRock, Inc., Vanguard Group Inc, State Street Corp, and Jpmorgan Chase & Co. These aren't short-term speculators; they are portfolio managers focused on multi-year themes.

Their sheer size means their buying and selling moves the market. When you see a stock with this level of institutional concentration, you know the investment thesis is tied to macro trends and consistent financial performance, not just quarterly noise. The total value of institutional holdings is substantial, reflecting confidence in the company's position in the clean-power ecosystem. For more on the long-term vision they are buying into, you can check out the Mission Statement, Vision, & Core Values of Power Integrations, Inc. (POWI).

Investment Motivations: Why the Big Money is Buying

The motivation for holding Power Integrations, Inc. is a blend of secular growth and shareholder returns, which appeals to both growth and value investors. The biggest draw is the company's specialized technology in high-voltage power conversion, particularly its PowiGaN products, which are key building blocks in the clean-power ecosystem.

Here's the quick math on what's attracting them:

• Electrification and AI Data Centers: Revenues from GaN-based products grew more than 50% in the first half of 2025. This is the long-term growth engine, with GaN technologies being adopted in Electric Vehicles (EVs) and next-generation 800 VDC AI data centers.
• Consistent Shareholder Returns: The company maintains a reliable dividend, paying $0.21 per share quarterly in 2025. Plus, they actively manage the share count, completing a $50 million share buyback and authorizing another $50 million program in 2025.
• Financial Resilience: Despite a challenging semiconductor cycle, the company reported Q3 2025 revenue of $118.92 million, beating expectations, showing stability even with near-term macroeconomic uncertainty.

Investment Strategies: Growth vs. Income

Investors in Power Integrations, Inc. employ a few distinct, yet complementary, strategies. The dominant strategy is clearly long-term holding by institutional players, who are essentially buying the future of power efficiency. They are willing to look past short-term sales dips, like the Q4 2025 revenue guidance of $100 million to $105 million, because they believe the long-term trend in EV and AI infrastructure will pay off.

Another key strategy is value investing with a growth kicker. Investors are attracted to the company's strong balance sheet and its commitment to returning capital. The quarterly dividend of $0.21, which translates to an annualized payout of $0.84, provides a steady income stream while they wait for the GaN-driven growth to fully materialize. This is a classic 'wait-and-grow' approach. Short-term trading exists, of course, but the high institutional ownership and the company's focus on capital returns make it less of a pure momentum stock. The consensus analyst rating of 'Moderate Buy' with a $60.00 average price target suggests a belief in a significant rebound from recent lows.

Next Step: Portfolio Manager: Assess your POWI position against the 2026 automotive revenue contribution outlook mentioned in the Q2 2025 report.

Institutional Ownership and Major Shareholders of Power Integrations, Inc. (POWI)

The investor profile for Power Integrations, Inc. (POWI) shows a company overwhelmingly backed by large institutions, which is a strong signal of confidence in its high-voltage power conversion technology. As of the third quarter of 2025, institutional ownership stood at a very high 103.25% of total shares outstanding, reflecting significant conviction from professional money managers.

This high ownership percentage-over 100%-is defintely an anomaly you see sometimes, usually because of timing differences in reporting or the inclusion of shares sold short, but it still points to a huge institutional presence. The total value of these institutional holdings was approximately $1.977 billion as of September 30, 2025. That's a lot of conviction in a specialized semiconductor play.

Top Institutional Investors: Who's Buying Power Integrations, Inc.?

When you look at the shareholder list, the major index fund giants dominate, which is typical for a mid-cap stock like Power Integrations, Inc. (POWI). These firms hold shares largely for passive funds-like an S&P Mid-Cap ETF-but their sheer size makes them critical stakeholders. Here's a quick snapshot of the top holders as of September 30, 2025:

• Vanguard Group Inc.: Held 7,147,276 shares.
• Blackrock, Inc.: Held 7,036,151 shares.
• Neuberger Berman Group Llc: Held 4,188,254 shares.
• State Street Corp.: Held 2,882,686 shares.

These four firms alone control a massive chunk of the company. Their investment decisions, even small portfolio adjustments, can move the stock price. If you want a deeper dive into the company's background, you can check out Power Integrations, Inc. (POWI): History, Ownership, Mission, How It Works & Makes Money.

Recent Shifts in Institutional Ownership

The third quarter of 2025 saw a fascinating mix of activity, which tells a nuanced story about investor sentiment. While the total number of institutional holders who increased their positions (158) was slightly lower than those who decreased (187), the overall share count held by institutions remained robust. This suggests that while some funds were trimming, others were accumulating significantly.

Here's the quick math on some key player moves during the quarter ending September 30, 2025:

Wellington Management Group Llp's massive increase of over 35% is a clear vote of confidence, likely tied to a specific thesis on the company's long-term growth in areas like electric vehicles or renewable energy. But you also see Blackrock, Inc. taking some money off the table, a classic portfolio rebalancing move. This isn't a unanimous buy signal, but it shows targeted accumulation by active managers.

The Impact of Large Investors on Strategy and Stock Price

Institutional investors are more than just passive holders; they are a critical force in a company's governance and market performance. Their buying and selling patterns directly affect the stock price volatility, especially for a company with a beta of 1.71 like Power Integrations, Inc., which indicates higher volatility than the overall market.

What this high institutional ownership means for you is that the stock's movement is largely driven by large-scale, data-driven decisions, not retail sentiment. Strong institutional ownership is a key indicator that endowments, hedge funds, and large money managers see the company as poised for long-term growth. Plus, these large investors, especially the active funds, can exert significant influence on management decisions-from capital allocation to strategic direction-through behind-the-scenes engagement. Their presence keeps management focused on maximizing shareholder returns. You need to watch their filings closely.

Key Investors and Their Impact on Power Integrations, Inc. (POWI)

You want to know who is buying Power Integrations, Inc. (POWI) and why, because institutional backing is a powerful signal. The direct takeaway is that this company is a favorite among the largest passive investment managers, with institutional investors collectively holding a commanding position-over 60% of the company's stock, and in some reports, an institutional ownership percentage of 103.1%, which is a common reporting anomaly due to short-selling and derivative positions.

This ownership structure means the stock's movement is heavily influenced by the portfolio decisions of giants like BlackRock and Vanguard, not just retail sentiment. It's a passive-heavy investment profile, but their sheer size gives them enormous sway.

The Vanguard and BlackRock Anchor

The investor profile for Power Integrations, Inc. is defined by the presence of the world's largest asset managers. These are not activist hedge funds looking for a quick breakup; they are index and large-scale passive funds that anchor the stock with massive, long-term holdings. Their investment rationale is often tied to Power Integrations, Inc.'s inclusion in major indices like the S&P Mid-Cap 400, which forces index-tracking funds to buy and hold a proportional stake.

As of the September 30, 2025, filings, the two largest shareholders are Vanguard Group Inc. and BlackRock, Inc., holding the top two spots. This is defintely a key point of stability for the stock.

• Vanguard Group Inc.: 7,147,276 shares held.
• BlackRock, Inc.: 7,036,151 shares held.

Other major players like Neuberger Berman Group LLC and State Street Corp also hold significant stakes, demonstrating a broad institutional consensus on the company's long-term viability in the high-voltage power conversion market.

Recent Institutional Moves and Market Influence

Looking at the most recent activity, the institutional landscape shows some shifting in Q3 2025, which is typical for a stock navigating a cyclical downturn. The total institutional value long was approximately $3.617 billion as of November 2025.

While Vanguard Group Inc. made a minimal net change of only 1,367 shares in Q3 2025, BlackRock, Inc. actually reduced its position by 359,399 shares. This suggests that while one passive giant was trimming, others were adding, like Wellington Management Group Llp, which increased its stake by 595,404 shares in the same quarter.

Here's the quick math on the top holders' Q3 2025 activity:

This churn is not a red flag; it's a sign of active managers adjusting their exposure to the semiconductor cycle. The influence here is subtle: large-scale selling can put downward pressure on the stock, but the overall high institutional ownership provides a floor, signaling confidence in the company's long-term strategy, particularly its focus on Mission Statement, Vision, & Core Values of Power Integrations, Inc. (POWI).

Management's Focus on Shareholder Value

Power Integrations, Inc.'s management is clearly attuned to the expectations of this institutional base, especially concerning capital allocation. In 2025, the company is on track to return nearly $150 million to stockholders through a combination of buybacks and dividends, a strong commitment to shareholder returns despite near-term revenue headwinds.

For example, in the third quarter of 2025 alone, the company used $42 million for buybacks, repurchasing 919,000 shares. This action directly supports the stock price and is a key factor in keeping large, passive investors content. It shows management is using a healthy balance sheet-with a market capitalization of roughly $1.77 billion-to enhance per-share metrics, which is exactly what these major funds want to see.

What this buyback estimate hides is the underlying cyclicality: the Q4 2025 revenue guidance of $100 million to $105 million is lower than the Q3 2025 net revenue of $118.9 million, but the continued capital return signals confidence in the long-term recovery driven by new products in automotive and AI data centers.

Actionable Insight: Tracking the Big Money

For you as an investor, tracking the flow of these major funds is a critical action. The fact that the largest holders are primarily passive means you should focus less on activist campaigns and more on the company's strategic alignment with long-term technology trends, like its GaN (Gallium Nitride) technology. When a large fund like Wellington Management Group Llp increases its position by over half a million shares, it suggests a conviction in the recovery story, which is a strong signal for individual investors to consider.

Next Step: Finance: Monitor the next 13F filings for Q4 2025 to see if the net institutional selling trend from BlackRock continues or if the accumulation from others accelerates.

Market Impact and Investor Sentiment

You are looking at Power Integrations, Inc. (POWI) right now and seeing a conflict: analysts are overwhelmingly bullish, but the stock price has taken a serious hit. The core of the investor profile is a massive institutional conviction battling near-term cyclical headwinds in the semiconductor space. Simply put, the smart money is holding for the long game, but the market is punishing the short-term outlook.

As of late 2025, institutional ownership of Power Integrations, Inc. sits at an unusually high level, around 103.1% of the float, increasing to 104.79% by March 2025. This high percentage signals that many shares are being held by long-term funds and that a significant portion is being lent out for short selling, which itself is a complex signal. The largest shareholders, like Vanguard Group Inc. and BlackRock, Inc., are holding millions of shares, with Vanguard holding over 7.1 million shares and BlackRock, Inc. holding over 7.0 million shares as of September 30, 2025. This is a vote of confidence in the company's Mission Statement, Vision, & Core Values of Power Integrations, Inc. (POWI).

Still, the insider sentiment is defintely negative. Over the past year, key executives have engaged in significant open-market selling, totaling about $12.0 million in high-impact transactions, with virtually $0 in high-impact purchases. When the people closest to the business are selling, it's a clear signal you cannot ignore, even if it's offset by low-impact acquisitions like stock awards. This suggests a lack of faith in the stock's near-term price trajectory, even as the institutions are digging in.

Recent Market Reactions and Ownership Moves

The stock market's reaction to Power Integrations, Inc.'s recent news has been brutal, reflecting the cyclical downturn in the semiconductor industry. The stock price dropped a painful 26% in the month leading up to mid-November 2025, capping off a year where the shares were down about 44%. This kind of price action forces a decision.

The catalyst for the most recent drop was the Q3 earnings report on November 5, 2025, which included downbeat guidance for the fourth quarter. Management projected Q4 2025 revenue to be between $100 million and $105 million, which implies a sequential sales decline and follows a recent quarterly net loss. The company tried to stabilize the narrative by completing a $50 million share buyback and announcing increases to its regular dividend, but the market focused on the sales decline.

Here's the quick math: the stock fell because the sales outlook was weak, despite the shareholder-friendly actions. The buyback is a nice gesture, but it doesn't solve the core issue of slowing demand in key end-markets. The price-to-sales (P/S) ratio of 4.3x is currently in line with the industry median, suggesting investors are still willing to pay a premium, but that will be tough to maintain with limited growth expectations.

Analyst Perspectives on Key Investors' Impact

Wall Street analysts maintain a positive long-term view, which is why the institutional ownership remains so high. The consensus rating for Power Integrations, Inc. is a Strong Buy. This bullish sentiment is largely driven by the company's long-term positioning, not its current earnings cycle.

The average 12-month price target from analysts sits between $50.00 and $50.50. Considering the stock was trading around $34.60 in November 2025, this implies an impressive upside potential of over 45%. The impact of key investors, particularly the massive institutional base, is to anchor this long-term perspective, preventing a total collapse during the cyclical downturn.

What this estimate hides is the near-term risk. Analysts from firms like Stifel Nicolaus and Benchmark Co. recently reiterated their 'Buy' ratings but still lowered their price targets in November 2025, with one target dropping from $70 to $56 and another from $55 to $50. This shows a realistic adjustment to the current environment while holding the long-term thesis. The bull case rests on two key opportunities:

• Accelerated design wins in the automotive sector.
• Expanding opportunities in AI data centers with new Gallium-Nitride (GaN) technologies.

The analysts believe Power Integrations, Inc. will achieve top-line growth significantly surpassing the analog industry average over time, bolstered by margin expansion and effective cost containment strategies. The institutional buying is a bet on this future, while the current stock price reflects the short-term pain of a net loss and weak guidance.