POWI Should I Buy
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0.000(0.000%)
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POWI is not a good buy right now for an impatient buyer. The stock is technically overbought (RSI~80) while momentum is starting to cool (MACD histogram still positive but contracting), insiders are aggressively selling, and near-term options flow is skewed bearish (very high put/call volume ratio). With earnings coming on 2026-02-05 (after hours), the risk/reward favors avoiding new entries today rather than chasing.
Intellectia Proprietary Trading Signals
Price/Trend: POWI is at ~$45.80 (-1.40% regular session; -2.27% pre-market indicated) in a slightly weak tape (S&P 500 -0.2%). Momentum: MACD histogram is positive (0.356) but contracting, which often signals upside momentum is fading after a run. Overbought/Mean reversion risk: RSI(6) ~80.33 = overbought, increasing odds of a pullback/consolidation. Moving averages: Converging MAs suggests the trend is not strongly directional from here and is vulnerable to reversal. Key levels: Pivot 45.153 (price is just above, but slipping). Resistance: 47.682 (R1), then 49.244 (R2). Support: 42.624 (S1), then 41.062 (S2). If price loses the pivot decisively, the technical setup points to a drift toward 42–41. Quant pattern odds (given): Similar-pattern study implies downside bias: ~40% chance to -0.47% next day, -3.07% next week, -5.69% next month.
~80 (overbought) and MACD momentum is contracting.
adds event risk; prior commentary from analysts (Nov
referenced weaker consumer demand and disappointing guidance, which can resurface as a narrative.
Latest quarter (2025/Q3): Revenue was $118.919M (+2.66% YoY), showing only modest top-line growth. Profitability deteriorated sharply: Net income fell to -$1.356M (-109.49% YoY) and EPS to -$0.02 (-108% YoY). Gross margin was ~54.53% (flat YoY). Overall: revenue growth is positive but slow, while earnings momentum is currently weak/negative—this is not the kind of financial trend that typically supports buying an overbought chart.
Recent trend: After November 2025 target cuts following Q3 and weaker guidance (e.g., Stifel cut to $56 from $70; Benchmark/Susquehanna to $50 from $55), January 2026 brought a clear rebound in Street stance with target raises and reiterations (Benchmark to $55 Buy; Susquehanna to $53 Positive). One outlier initiation shows a much higher target ($83) but is not broadly corroborated in the provided set.
Wall Street pros: Belief in a cyclical bottom, improving industrial end markets, management-driven catalysts, and pipeline strength. Wall Street cons: Consumer demand volatility (incl. pull-ins/tariff effects cited previously), auto still challenged, and near-term earnings/guidance sensitivity.
Influential/political trading: No recent congress trading data available. Hedge funds: Neutral (no significant trend).
