Enphase Energy’s Surprising Rebound: Is the Worst Over?

Enphase Energy ( (ENPH) ) has risen by 12.81%. Read on to learn why.

Enphase Energy shares climbed 12.81% over the past week as investors responded positively to a sweeping restructuring plan and a growing belief that the company is positioned to benefit from long-term energy demand tied to artificial intelligence. The company is cutting under 6% of its global workforce, shifting some operations to lower-cost regions, and tightening spending with a clear focus on its core microinverter, battery, and software platforms. These moves are aimed at offsetting softer near-term residential solar demand after the expected expiration of the U.S. 30% Residential Clean Energy Tax Credit at the end of 2025 and at restoring margin strength in a cooling rooftop-solar market.

Despite near-term headwinds, including guided revenue declines and European market pressure, Enphase Energy is increasingly being framed as a key player in the “distributed energy” backbone needed to power the AI boom. Rising electricity use from hyperscale data centers is straining aging grids, boosting the appeal of decentralized solar-plus-storage systems that generate and store power close to where it’s consumed. Enphase’s hardware and AI-optimized software help knit millions of rooftop systems into virtual power plants, enabling homeowners to sell power back to the grid during peak demand and positioning the company at the intersection of clean energy and digital infrastructure.

On Wall Street, sentiment is still mixed but improving, supporting the recent 12.81% move. Analysts overall rate Enphase Energy a Hold, with several high-profile firms, including Craig-Hallum and Wells Fargo, reiterating Buy ratings and setting price targets above recent trading levels, even as TipRanks’ AI-based Spark model keeps a Neutral stance due to weak cash flow and modest revenue growth. Valuation has compressed to mid-teens forward earnings, which some investors now see as an attractive entry point for a market leader with solid profitability, a clearer cost base, and optionality on AI-driven energy demand—turning Enphase into a speculative but increasingly popular way to play the power needs of the data economy.