Power Integrations — AI supply-chain exposure

Power Integrations designs high-voltage integrated circuits that convert and switch power — the chips inside the power supplies that step grid voltage down to what server electronics can actually use. Its distinctive lever is gallium-nitride (GaN) switching, a wide-bandgap technology that moves power more efficiently and in less space than legacy silicon, which matters as rack power density climbs.

As AI servers draw ever more power, the efficiency and thermal budget of the power-supply stage becomes a genuine constraint, and GaN content is one of the levers to relieve it. The model places Power Integrations as a specialised power-delivery supplier — peripheral to compute but riding the same density curve. Its pricing power rests on GaN intellectual property and a fabless focus on the switching devices themselves.