SolarEdge Technologies Inc

SolarEdge Technologies said on September 10 that the medium-voltage to 800 volt direct current conversion stage of its data center power system is now running under load in its own labs, with full-path validation underway. The company also published a joint white paper with NVIDIA titled "800 VDC Protection and Grounding for AI Data Centers," describing a zone-based protection approach that keeps power flowing in the restricted facility zone while cutting it instantly at the rack interface. SolarEdge said the medium-voltage solid-state transformer, DC distribution hardware, and monitoring systems meant for AI facilities remain under development and not yet generally available, and NVIDIA described the architecture as one candidate implementation within an open, multi-vendor 800 VDC ecosystem rather than a mandated design. The update came alongside second-quarter results reported on August 5: revenue of $346.2 million, up 20% year over year, a sixth straight quarter of margin expansion, non-GAAP operating income of $10.2 million, free cash flow of $3.1 million, and cash and investments net of debt of $264.6 million, though GAAP figures still showed an operating loss of $16.0 million and a net loss of $30.8 million. Third-quarter guidance calls for revenue of $310 million to $340 million, and CEO Shuki Nir said the company is continuing to advance the SolarEdge SST to address the significant opportunity in AI factories.

Enphase Energy and SolarEdge Technologies rallied on Tuesday after Enphase began producing IQ Solid-State Transformer modules in Texas for AI data centers, with Enphase up 5% to $38.31 and SolarEdge jumping 6% to $36.34, while the Invesco Solar ETF gained 3%. Enphase's IQ SST power modules, rated at 4 kW each, combine into racks with up to 5 MW capacity, converting medium-voltage AC to 800-volt DC for AI workloads. SolarEdge, which has its own SST platform targeting the same AI-factory opportunity, saw its stock climb 6% despite no company-specific news, with its investor day scheduled for Thursday. Both companies remain pre-revenue on the data-center side, with Enphase targeting full-system demonstrations later this year, customer pilots in 2027, and commercial shipments in 2028, while SolarEdge mirrors that timeline. First Solar, outside the SST narrative, is down 19% year to date, and the Invesco Solar ETF's 3% gain lags the SST-linked names, highlighting the market's focus on the AI-power story.

SolarEdge Technologies shares rose 8.9% after the company reported a second-quarter 2026 adjusted earnings beat, driven by revenue growth in Europe and U.S. commercial markets, and returned to adjusted operating profitability for the first time since second-quarter 2023, thanks to improved gross margins and tariff benefits. However, the company issued third-quarter 2026 revenue guidance below analyst expectations, prompting downward estimate revisions. The April 2026 launch of the CSS OD 197 kWh commercial storage system in Europe and Asia is seen as a key catalyst, aligning with the commercial and storage themes that boosted second-quarter results. Analysts' long-term forecasts project $1.7 billion revenue and $83.9 million earnings by 2029, with a fair value estimate of $38.45, implying a 12% upside. Previously, the most optimistic analysts assumed around $2.2 billion revenue and $214 million earnings by 2029, highlighting the gap between bullish and consensus expectations.

President Trump signed an emergency order Wednesday that aims to keep some foreign-made transformers and other critical energy equipment out of U.S. electric grids, as reported by Bloomberg. The order generally bars the purchase, importation, or installation of certain foreign-made bulk-power system electrical equipment and associated software where it could pose cybersecurity or operational risks, and sets the stage for potentially new conditions on the continued use of equipment already installed. China accounts for about 80% of the world's battery and solar inverter manufacturing capacity, according to the International Energy Agency, and scores of Chinese large power transformers have been imported into the U.S. over the past decade, per a 2020 Commerce Department investigation. The executive order warned of "certain foreign actors" who are "increasingly creating and exploiting vulnerabilities in the United States bulk-power system." Power utilities and other companies using such equipment are effectively put on notice while the Department of Energy develops rules to implement the ban. Analysts say the move could benefit domestic manufacturers and companies like SolarEdge Technologies, Enphase Energy, and Tesla.

SolarEdge Technologies rose 7.2% in Wednesday's trading after UBS upgraded the stock to Buy from Neutral, raising its price target to $42 from $36, citing the company as a key beneficiary of the U.S. Federal Communications Commission's ban on new foreign-produced power inverters. The ban, announced in July, applies to new models of foreign inverters that connect to communication networks and impacts more than half of the U.S. inverter market, according to UBS Evidence Lab data. Analyst Jon Windham expects the ban to create a supply-constrained U.S. market, driving share gains and potential pricing power for SolarEdge, prompting him to raise his 2027 and 2028 adjusted EBITDA estimates to $110 million and $190 million, respectively, from $101 million and $173 million. Windham also sees the ban creating a market opportunity for SolarEdge's 330kW TerraMax utility-scale inverter product, which had limited adoption before, and anticipates the company will articulate its recovery story at its September 10 analyst day.

Abercrombie & Fitch soared 37% after trouncing fiscal second-quarter estimates and raising its full-year outlook, with adjusted earnings of $2.42 per share and revenue up 5% to $1.27 billion, helped by tariff refunds and stronger growth at its Abercrombie unit. Intuit fell 4% after offering disappointing fiscal year 2027 guidance of $23.3 billion to $23.5 billion in revenue, below the $23.7 billion analyst estimate, though its fiscal fourth-quarter earnings and revenue beat expectations. Meta Platforms jumped 3% after reaching a settlement with state attorneys general in a case alleging it made its apps addictive to teenagers. Zoom Communications dropped 7% after its third-quarter forecast of $1.46 to $1.48 earnings per share missed the $1.50 estimate. Kohl's rose 2% after raising its full-year outlook, partly due to $150 million in tariff refunds, and announced share buybacks of up to $100 million in 2026. J.M. Smucker climbed 3% on fiscal first-quarter revenue of $2.22 billion, topping the $2.13 billion consensus. SolarEdge Technologies jumped nearly 8% after a UBS upgrade to buy, citing an FCC policy expected to boost market share and pricing power. Semtech rose over 8% on second-quarter earnings beat, with adjusted EPS of 71 cents versus 61 cents expected. Boston Scientific fell 5% after reporting a cybersecurity incident causing product disruptions. SAP declined 3% after a UBS downgrade to neutral, citing slow delivery of agentic AI.

U.S. stock futures hovered around the flatline on Wednesday as investors awaited the latest inflation data and Nvidia's quarterly results. Among premarket movers, Intuit tumbled 11.8% to $315.30 after issuing fiscal 2027 guidance that fell well short of expectations, overshadowing a strong fourth-quarter earnings beat. Semtech surged 4.7% after reporting record fiscal second-quarter results, with revenue of $341.9 million and adjusted EPS of $0.71 beating estimates, and data-center revenue hitting a record $100 million. SolarEdge rose 5.6% after UBS upgraded it to Buy, citing the FCC's decision to add foreign-produced power inverters to its national-security Covered List, which could tighten supply and benefit domestic suppliers. Spyre Therapeutics fell 11.7% after deciding not to develop its drug SPY072 as a standalone rheumatoid arthritis treatment despite positive statistical results, while Boston Scientific dropped 3.2% on a cybersecurity incident disrupting operations.

Intuit shares plunged 11% in premarket trading after the financial technology platform issued fiscal 2027 revenue guidance of $23.279 billion to $23.512 billion, below the $23.7 billion analysts expected, though its fiscal fourth-quarter earnings and revenue beat estimates. The disappointing outlook dragged other software stocks lower, with the iShares Expanded Tech-Software ETF down over 1%, ServiceNow off more than 2.5%, and Workday and Salesforce each down 2%. Zoom Communications fell 7% after its third-quarter earnings per share guidance of $1.46 to $1.48 came in short of the $1.50 FactSet consensus. Kohl's declined 5% after reporting a 0.9% drop in second-quarter comparable sales, worse than the 0.6% decline expected, but the retailer raised its full-year outlook, partly due to $150 million in tariff refunds, and restarted share buybacks of up to $100 million in 2026. On the upside, J.M. Smucker climbed 5.6% after fiscal first-quarter revenue of $2.22 billion topped the LSEG consensus of $2.13 billion, SolarEdge jumped nearly 7% following a UBS upgrade to buy on a new FCC policy, and Semtech rose more than 5% after beating earnings estimates with adjusted EPS of 71 cents versus 61 cents expected. Box gained over 2% on revenue beat, while Boston Scientific fell more than 3% after disclosing a cybersecurity incident causing product disruptions, and SAP dropped almost 4% after a UBS downgrade to neutral on slow agentic AI delivery.

Several companies made significant premarket moves following their latest earnings reports. Atlassian shares jumped more than 29% after beating FactSet consensus on revenue and guidance for its fourth quarter, though its 13% year-over-year revenue growth forecast fell short of the 13.4% expectation. Wendy's dropped 2% as global sales declined more than 6%, driven by an 8.2% U.S. decline, and the company withdrew its 2026 financial outlook despite beating FactSet consensus on earnings, revenue, and adjusted EBITDA. Solar stocks rose after President Trump imposed tariffs on imported solar panel components, with First Solar up more than 5%, Invesco Solar ETF up nearly 3%, and SolarEdge Technologies up 2%. Airbnb surged nearly 7% after posting second-quarter earnings of $1.37 per share on revenue of $3.61 billion, exceeding LSEG estimates of $1.25 per share and $3.58 billion. Twilio soared more than 17% as it guided for adjusted earnings of $1.42 to $1.47 per share on revenue of $1.51 billion to $1.52 billion, above the $1.39 per share and $1.46 billion consensus, and raised its full-year revenue growth outlook to 18% to 18.5% from 14% to 15%, topping the 14.8% forecast. Trade Desk tumbled 27% after second-quarter adjusted earnings of 34 cents per share on revenue of $715 million missed LSEG estimates of 40 cents and $751 million. Cloudflare jumped more than 16.5% on strong guidance, expecting third-quarter adjusted earnings of 34 cents per share on revenue of $736 million to $737 million, compared with consensus of 32 cents and $722 million, and also beat second-quarter estimates. Akamai Technologies rose 8.3% after second-quarter adjusted earnings of $1.59 per share on revenue of $1.10 billion topped LSEG forecasts of $1.57 per share and $1.09 billion.

SolarEdge Technologies achieved non-GAAP operating profitability for the first time in nearly three years, driven by a 20% year-over-year revenue increase and six consecutive quarters of gross margin expansion. The company doubled European revenue year-over-year and expanded its U.S. commercial and industrial market share to over 50% of rooftop installations, benefiting from being the only major inverter vendor delivering U.S.-manufactured products that meet domestic content and FCC requirements. It launched the Nexis platform in Europe with over $60 million in initial shipments and advanced its AI factory strategy with live demonstrations of a Solid State Transformer system validating 99% efficiency. For the third quarter, SolarEdge guided revenue of $310 million to $340 million, assuming a $15 million sequential decline in Europe and continued U.S. residential softness, while projecting positive free cash flow for the full year 2026. The company plans to share its long-term AI factory revenue roadmap at an Investor Day on September 10.

SolarEdge Technologies shares surged 5.56% on Tuesday after reports that the Trump administration is considering a ban on new Chinese-made solar inverters over cybersecurity concerns. The proposed Federal Communications Commission rules could tilt the competitive landscape in favor of domestic and non-Chinese manufacturers like SolarEdge, which designs smart inverters and power optimizers. The stock has rallied 122.12% over the past 52 weeks from a February low of $29.43, though it remains 36% below its May 52-week high of $81.25. SolarEdge's first-quarter revenue of $310.5 million topped estimates despite a 7.4% year-over-year decline, and management guided for $325 million to $355 million in the current quarter. Wall Street rates the stock a consensus Hold, with a mean price target of $41.30 and a Street-high target of $85 implying up to 53.1% upside.

A reported draft ban on Chinese solar inverter imports could provide a marginal boost to Enphase Energy and SolarEdge Technologies, with Goldman Sachs saying the practical implications are more significant for the utility-scale market than residential applications. Analyst Brian Lee noted the Trump administration is drafting a ban on foreign inverter imports over concerns about potential disruptions to power supplies, with the rule potentially finalized as early as this year, though he cautioned the policy could be revised or not executed at all. Goldman said the news is likely more impactful to SolarEdge given its greater market share within the commercial and industrial segment, where Chinese manufacturers Chint and Sungrow together hold approximately 40% market share, up from around 30% in the early 2020s. Within the residential inverter market, Enphase, SolarEdge and Tesla have maintained approximately 90% combined market share for several years, leaving limited room for Chinese displacement. The bank said the ban could provide less resistance to Enphase's strategy shift to enter the commercial and industrial market, where the company has targeted 40% market share within three years, and noted that both companies are advancing solid-state transformer products targeting the utility-scale market, where Chinese firm Sungrow is currently the market leader, meaning the reported legislation could potentially enhance opportunities in that market. Goldman maintained its Buy rating on Enphase with a $57 price target and its Sell rating on SolarEdge with a $34 target.

Ameresco shares rose 2.9% to $27.35 after the broader US renewable energy sector rallied on news of potential import restrictions on foreign-made power inverters. The rally was triggered by a report that the government is preparing rules that could ban certain foreign power inverters on national security grounds, which would likely benefit domestic companies. Solar companies like Enphase Energy and SolarEdge Technologies also experienced significant gains. Ameresco's stock is down 10.8% year-to-date and trades 36.7% below its 52-week high of $43.23 from October 2025.

SolarEdge Technologies is expanding its U.S. manufacturing capacity to capitalize on growing demand for integrated solar and storage solutions. The company recognized revenues on roughly 50.5 thousand inverters, 2.4 million optimizers, and 331 megawatt-hours of batteries for PV applications in the first quarter of 2026, supporting year-over-year revenue growth. Management views its ability to offer products designed to comply with domestic content requirements and FEOC regulations as a structural advantage in the U.S. commercial and industrial rooftop market. Capital expenditures are expected to be $60 to $80 million in 2026, primarily for expanding U.S. solar PV and battery manufacturing capacity, while targeting near-breakeven operating results in the second quarter. Shares have risen 19.8 percent over the past three months, outperforming the industry's 14.4 percent growth.