Investing.com – Enphase Energy Inc () shares rose 14% Thursday and gained 26% for the week as investors positioned into the stock amid data center energy demand. The company has been developing solid-state transformers.
Goldman Sachs analyst Brian Lee discussed solid-state transformers and Enphase Energy’s positioning in a note to clients on Wednesday. The analyst stated that with the pending evolution of modern data centers to 800V DC architecture per the Nvidia roadmap in coming years, the opportunity for power conversion technology across the AI data center footprint is starting to come into focus. Multiple technology vendors are planning to roll out advanced transformer technologies to address the more stringent efficiency, reliability, and higher power needs of future AI data centers.
Enphase Energy formally announced development of a solid-state transformer in late April and published a presentation discussing the product in more detail. The company is working with potential customers and aims to start pilot programs in 2027 with initial shipments expected in 2028. Goldman Sachs hosted the company for an investor call in early May to discuss the solid-state transformer opportunity.
Goldman Sachs estimates the solid-state transformer total addressable market to be in the 10 gigawatt range in 2030, equating to a revenue opportunity as high as $5 billion. Based on low and high scenarios, the firm calculates that revenue potential in 2030 for Enphase Energy could range from $110 million to $910 million, with earnings potential of $0.21 to $1.75 in 2030.
Goldman Sachs maintained a Buy rating on Enphase Energy and raised its 12-month price target to $57 from $51 prior. The firm’s target price is based on a target price-to-earnings multiple of 22.5 times applied to its Q5-Q8 earnings per share, and then adding back $5 of net cash per share.
