Shares of Power Integrations (POWI) plummeted 6.36% in pre-market trading on Tuesday, as investors reacted to recent analyst price target reductions. The significant drop comes amid growing concerns about the company's near-term prospects.

Two prominent financial firms have lowered their price targets for Power Integrations. Northland Securities cut its target from $80 to $69 while maintaining an Outperform rating on the stock. Similarly, Benchmark reduced its price target from $78 to $70. These downgrades suggest that analysts are adjusting their expectations for the company's future performance.

While both firms still maintain relatively positive outlooks for Power Integrations, as indicated by Northland's Outperform rating, the reduced price targets have clearly spooked investors. The market's sharp reaction highlights the sensitivity of tech stocks to analyst opinions and the potential for rapid price adjustments based on revised growth expectations.