Driven by a favorable report from Goldman Sachs, Enphase Energy (ENPH) saw its stock price surge 17.8% on Thursday, reaching a 52-week high of $63.28. Goldman Sachs maintained a “Buy” rating on the stock and raised its target price from $51 to $57.
Goldman Sachs analyst Brian Lee stated that as modern data centers evolve toward an 800V DC architecture in line with NVIDIA’s roadmap over the next few years, the demand opportunities for power conversion technology in AI data centers are gradually emerging. Multiple technology companies have already announced plans to introduce advanced transformer technologies to meet the efficiency, reliability, and higher power requirements of future AI data centers.
Lee pointed out that in the emerging arena of solid-state transformers, power inverter suppliers naturally possess the ability to transfer their technological expertise. Enphase and SolarEdge (SEDG) have already announced clear plans to launch product prototypes by the end of 2025, seeking to gain a first-mover advantage. He indicated that the roadmap for transitioning to an 800V DC architecture suggests the first deployments could begin as early as 2028, which has already sparked a commercial race in solid-state transformers.
Meanwhile, traditional industry power giants such as ABB (ABBNY), GE Vernova (GEV), and Siemens (SIEGY) are also actively developing corresponding solutions. However, Lee believes that Enphase, leveraging its experience in digital control and modular design from its microinverter business, is well-positioned to secure a role in this upcoming upgrade of data center power supply architecture.
Lee estimates that the total addressable market for solid-state transformers in 2030 will be approximately 10 gigawatts, corresponding to a revenue opportunity of up to $5 billion. Based on low-end and high-end scenario assumptions, he calculates that Enphase’s revenue potential could reach as high as $910 million, with incremental earnings per share potentially ranging from $0.21 to $1.75 in 2030. This implies that even with only moderate market penetration, solid-state transformers are poised to become a new growth driver for Enphase, beyond its traditional residential energy storage and inverter business. Lee believes that the market’s enthusiasm for investing in AI data center power infrastructure has not yet fully priced in Enphase’s transformational potential in the transformer space. As product prototypes emerge in the coming months, he sees further room for valuation recovery.
Enphase Energy is a pioneer in the solar industry, having introduced microinverter technology in 2006 to convert direct current to alternating current. The company has since expanded into battery energy storage, electric vehicle chargers, and energy management software. As of early 2026, Enphase has shipped 87.8 million microinverters, supplied 5.2 million systems to over 165 countries and regions, and delivered 2.5 gigawatt-hours of energy storage systems. On February 17, 2026, Greenvale Capital LLP disclosed the purchase of 2.35 million shares of Enphase stock in the fourth quarter, with a total value of approximately $75.32 million. The company’s revenue for 2025 was approximately $1.5 billion, up from $1.3 billion in 2024, while its gross margin declined from 47.3% to 46.6%.
