1 Growth Stock Down 50% to Buy Right Now

• AI powerfulness demands person been a monolithic tailwind for Power Solutions International, but the banal is trading similar each of those tailwinds person vanished.

• A debased P/E ratio and fantabulous gross maturation marque the diminution much confusing.

• The institution adjacent has a 2.28 speedy ratio, which indicates a beardown fiscal presumption with small debt.

• 10 stocks we similar amended than Power Solutions International ›

Power Solutions International (NASDAQ: PSIX) caught the artificial quality (AI) tailwinds successful aboriginal 2024 and rode them to banal terms gains exceeding 5,950% by mid-September 2025. Since hitting that high, the banal terms has fallen 47%, partially connected marketplace worries astir the powerfulness strategy manufacturer's accounting practices.

Concerns astir overstated gross maturation tin undoubtedly displacement the bullish communicative connected the stock, but the institution inactive has potential. For instance, insiders inactive ain astir 80% of the shares, indicating continued assurance from the radical astatine the top. The institution besides continues to payment from the artificial quality (AI) trend, and it continues to study outsized gross growth. Add successful that the banal doesn't person the benignant of lofty valuation that has commonly been a interest for AI stocks. Its price-to-earnings ratio is conscionable 11.3.

Those reasons and much suggest the caller terms driblet whitethorn contiguous a semipermanent buying opportunity. Let's instrumentality a person look.

The institution develops and produces powerfulness systems for industrial, energy, and proscription applications. While Power Solutions International expects request from the concern and proscription markets to stay flat, it projects important maturation successful information halfway demand. Basically, arsenic much AI information centers get built, Power Solutions International should acquisition rising request for its wares.

In Q3, Power Solutions International's income roseate by 62% twelvemonth implicit twelvemonth to $203.8 million. Power systems income accrued by $85.3 million, portion concern and proscription extremity marketplace income decreased by $4.7 cardinal and $2.6 million, respectively.

Management didn't supply nonstop breakdowns of however overmuch each of these 3 segments earned successful the quarter. However, an $85.3 cardinal summation to existing powerfulness systems income against a full of $203.8 cardinal successful gross suggests that information centers present supply the bulk of Power Solutions International's apical line.

Power Solutions volition beryllium successful a bully presumption to accelerate its gross maturation rates arsenic much information centers are built. Furthermore, AI spending from large tech companies is besides expected to emergence successful 2026, which should effect successful much request for Power Solutions International's services.