By Kit Norton

Enphase Energy stock tried to snap a four-day losing streak on Thursday, gaining on a rating upgrade from an analyst who thinks the solar equipment supplier can get in on the data-center boom.

Shares were up 8.6% to $51.88. They're down 24% for the month after surging more than 100% in May. The stock is up 62% this year and have gained more than 80% over the past 12 months, according to Dow Jones Market Data.

The upgrade came from Barclays analyst Christine Cho. Her rating is now Equal Weight, up from Underweight. She also raised her price target -- to $51 from $30.

Cho's rationale is the potential for Enphase to push into selling solid-state transformers to data centers, based on the estimated more than $1 trillion in AI spending by hyperscalers next year.

A couple of months ago, Enphase said it is still working on its solid-state transformer design, which Cho said represents a "credible" entry into data centers.

Solid-state transformers, she wrote, "are expected to become a core component" in data centers as hyperscalers shift toward higher rack densities for AI.

Cho estimates the solid-state transformer total addressable market at about $2 billion and thinks Enphase can keep increasing its share of that market. However, it probably won't add to the company's financials until 2028.

Investors have lately gone into a frenzy over solid-state transformer possibilities and its ability to convert power to different voltages.

Solid-state transformers do much the same thing as traditional ones, but move the power through steel, coiled copper and mechanical switches.

Nvidia kicked off the race to develop solid-state transformers last year. Enphase is still working on its design. which should eventually generate more than five times the power of Hoover Dam.

Still, Wall Street remains broadly neutral on Enphase stock. Of the 34 firms polled by FactSet, shares have an average Hold rating and a price target of $46.68.

Write to Kit Norton at kit.norton@barrons.com

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June 18, 2026 11:30 ET (15:30 GMT)

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