Which Is a Better Investment, AXT, Inc. or Power Integrations, Inc. Stock?

By Jenna Brashear
February 26, 2026
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Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Power Integrations, Inc., AXT or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Power Integrations, Inc., AXT and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Power Integrations, Inc., AXT and Inc.

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion. It provides a range of alternating current to direct current power conversion products that address power supply up to approximately 500 watts of output for consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, consumer and industrial applications, and LED lightings; and power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric locomotives, and high-voltage DC transmission systems. The company also offers InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, it provides motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, and circulation pumps, as well as pumps and fans used in appliances, such as dishwashers, laundry machines, and boilers. The company serves communications, computer, consumer, and industrial markets. It sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, laser machining, cutting and drilling, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.

Latest Semiconductors & Semiconductor Equipment and Power Integrations, Inc., AXT, Inc. Stock News

As of February 25, 2026, Power Integrations, Inc. had a $2.7 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $3.2 million. Power Integrations, Inc.’s stock is up 34.9% in 2026, up 5% in the previous five trading days and down 25.01% in the past year.

Currently, Power Integrations, Inc.’s price-earnings ratio is 124.8. Power Integrations, Inc.’s trailing 12-month revenue is $443.5 million with a 5.0% net profit margin. Year-over-year quarterly sales growth most recently was -2.0%. Analysts expect adjusted earnings to reach $1.293 per share for the current fiscal year. Power Integrations, Inc. currently has a 1.8% dividend yield.

As of February 25, 2026, AXT, Inc. had a $2.2 billion market cap, putting it in the 56th percentile of all stocks. AXT, Inc.’s stock is up 117.5% in 2026, up 49.3% in the previous five trading days and up 2957.46% in the past year.

Currently, AXT, Inc. does not have a price-earnings ratio. AXT, Inc.’s trailing 12-month revenue is $90.4 million with a -24.1% net profit margin. Year-over-year quarterly sales growth most recently was 18.6%. Analysts expect adjusted earnings to reach $0.004 per share for the current fiscal year. AXT, Inc. does not currently pay a dividend.

How We Compare Power Integrations, Inc., AXT and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Power Integrations, Inc., AXT and Inc.’s stock grades to see how they measure up against one another.

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Power Integrations, Inc., AXT and Inc.’s Quality Grades

Company Ticker Quality
Power Integrations, Inc. POWI A
AXT, Inc. AXTI D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Power Integrations, Inc. has a Quality Score of 85, which is Very Strong. AXT, Inc. has a Quality Score of 21, which is Weak.

The Quality Grade Winner: Power Integrations, Inc.

As you can clearly see from the Quality Grade breakdown above, Power Integrations, Inc. has a better overall quality grade than AXT, Inc.. For investors who are looking for companies with higher quality than others in the same industry, Power Integrations, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Power Integrations, Inc., AXT and Inc.’s Momentum Grades

Company Ticker Momentum
Power Integrations, Inc. POWI C
AXT, Inc. AXTI A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Power Integrations, Inc. has a Momentum Score of 59, which is Average. AXT, Inc. has a Momentum Score of 100, which is Very Strong.

The Momentum Grade Winner: AXT, Inc.

As you can clearly see from the Momentum Grade breakdown above, AXT, Inc. is considered to have stronger momentum compared to Power Integrations, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, AXT, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Power Integrations, Inc., AXT and Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Power Integrations, Inc. POWI C
AXT, Inc. AXTI A

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Power Integrations, Inc. has a Earnings Estimate Score of 44, which is Neutral. AXT, Inc. has a Earnings Estimate Score of 82, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: AXT, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, AXT, Inc. has a better Earnings Estimate Revisions Grade than Power Integrations, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, AXT, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Power Integrations, Inc., AXT and Inc. Grades

In addition to Estimate Revisions, Quality and Momentum, A+ Investor also provides grades for Value and Growth.

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Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Power Integrations, Inc., AXT and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Power Integrations, Inc., AXT or Inc. Stock?

Overall, Power Integrations, Inc. stock has a Momentum Score of 59, Estimate Revisions Score of 44 and Quality Score of 85.

AXT, Inc. stock has a Momentum Score of 100, Estimate Revisions Score of 82 and Quality Score of 21.

Comparing Power Integrations, Inc., AXT and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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