Enphase (ENPH.US) surged nearly 18% in a single day! Goldman Sachs Group, Inc. is optimistic about the data center transformer opportunity and has raised its target price.

Enphase Energy (ENPH.US) saw its stock price rise by 17.8% on Thursday, reaching a 52-week high of $63.28. The day before, Goldman Sachs Group, Inc. released a report discussing solid-state transformer technology and the company's ability to seize this opportunity. Despite Enphase's stock price already rising significantly and hitting a new 52-week high, Goldman Sachs Group, Inc. maintained a "buy" rating on Enphase (ENPH) and raised its target price from $51 to $57. Goldman Sachs Group, Inc. analyst Brian Lee pointed out that as modern data centers evolve towards 800V DC architecture in the coming years following the roadmap of NVIDIA Corporation, the demand for power conversion technology in artificial intelligence data centers is gradually emerging. Several tech companies have plans to introduce advanced transformer technology to meet the future AI data centers' requirements for efficiency, reliability, and higher power. Lee stated that in this emerging solid-state transformer field, power inverter suppliers naturally have the ability to transfer technology. Enphase and SolarEdge (SEDG) have already announced plans to launch product prototypes by the end of 2025 to gain a first-mover advantage. Lee said, "The roadmap for transitioning to 800V DC architecture indicates that the first deployments may start as early as 2028, sparking a commercial competition for solid-state transformers." At the same time, traditional power industry giants such as ABB (ABBNY), GE Vernova (GEV), and Siemens (SIEGY) are also actively developing corresponding solutions. However, Lee believes that Enphase, with its experience in digital control and modular design in the field of microinverters, is poised to secure a position in this round of data center power supply architecture upgrades. Lee estimates that the total addressable market size for solid-state transformers in 2030 is around 10 gigawatts, with revenue opportunities reaching up to $5 billion. Based on low-end and high-end scenario assumptions, he calculates that Enphase's revenue potential could be as high as $9.1 billion, with potential earnings per share growth ranging from $0.21 to $1.75 by 2030. This means that even with only moderate market penetration, solid-state transformers could become a significant growth driver for Enphase beyond its traditional residential storage and inverter businesses. Lee believes that the market enthusiasm for investments in AI data center power infrastructure has not fully reflected the transformation potential of Enphase in the transformer field, and with the unveiling of product prototypes in the coming months, there is still room for further valuation recovery.