Power Integrations' stock soared 11.83% during intraday trading on Tuesday, continuing momentum from premarket gains.

The semiconductor company's shares rose following news that Huawei Technologies has developed a workaround to manufacture more advanced chips without the specialty equipment that the U.S. has blocked. Huawei revealed a new principle called the Tau Scaling Law that focuses on shortening data movement time through chips rather than just shrinking transistor size.

Industry analysts view this development as potentially beneficial for semiconductor companies like Power Integrations, as Huawei expects to design high-end chips matching the transistor density of 1.4-nanometer process chips by 2031 using this new approach.