Enphase Energy (NASDAQ:ENPH) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.
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.