Why Power Integrations (POWI) Stock Is Soaring Today

NEW YORK (TheStreet) -- Shares of Power Integrations Inc. (POWI) are higher by 4.28% to $59.66 on very heavy volume in early afternoon trading on Wednesday.

Semiconductor stocks are getting a boost today, following a Bloomberg report suggesting the largest chip maker in Germany, Infineon Technologies AG (IFNNY) , is looking to purchase a U.S. based semiconductor company for close to $2 billion.

Infineon didn't announce which company it is most interested in acquiring, but a Bloomberg report from July suggests the company could be looking closely at Power Integrations, as well as Semtech Corp. (SMTC) , and Fairchild Semiconductor Intl. Inc. (FCS) .

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A purchase agreement may be announced as soon as today, sources told Bloomberg.

Separately, TheStreet Ratings team rates POWER INTEGRATIONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate POWER INTEGRATIONS INC (POWI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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Strong And Under The Radar: Power Integrations (POWI)