SolarEdge Technologies Inc. (SEDG) stock surged 5.15% in Wednesday's pre-market trading following the release of better-than-expected third-quarter financial results and the announcement of a strategic collaboration with Infineon Technologies.
The solar inverter maker reported Q3 revenue of $340.2 million, surpassing analysts' expectations of $332.4 million. The company's adjusted loss per share of $0.31 also beat estimates of $0.40. SolarEdge demonstrated significant improvement in its financial performance, with gross margin increasing to 21.2% from 11.1% in the previous quarter, despite a 2% tariff impact. The company also managed to reduce its GAAP operating expenses to $107.3 million from $147.6 million in the prior quarter.
Adding to investor optimism, SolarEdge announced a collaboration with Infineon Technologies to advance its Solid-State Transformer platform for next-generation AI and hyperscale data centers. This new technology is designed to enable direct medium-voltage to 800-1500V DC conversion with over 99% efficiency, potentially revolutionizing power infrastructure for AI data centers. The market's positive reaction reflects confidence in SolarEdge's strategic positioning in the growing AI infrastructure sector, as well as its improving financial health.