Why Power Solutions International (PSIX) Is Skyrocketing So Far In 2025?

We recently published a list of Why These 15 Industrial Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Power Solutions International, Inc. (NASDAQ:PSIX) stands against other industrial stocks that are skyrocketing so far in 2025.

The industrial sector has gotten a lot of attention in the past few years from the government due to the U.S. focusing on onshoring manufacturing, and it is likely that it will get even more attention as tariffs start to increase. Moreover, industrial companies are rushing to integrate AI and automation, which could increase margins by a lot in the long run.

As such, it’s a good idea to look into industrial stocks that benefit from these trends. This includes those that have been performing very well so far this year. Companies that adapt to new techs and capitalize from the Trump administration’s policies could deliver the most growth in the coming years.

Methodology

For this article, I screened the top-performing industrial stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

Why Power Solutions International (PSIX) Is Skyrocketing So Far In 2025?

A row of electric vehicles all powered by the company’s advanced battery systems.

Power Solutions International, Inc. (NASDAQ:PSIX)

Number of Hedge Fund Holders In Q3 2024: N/A

Power Solutions International, Inc. (NASDAQ:PSIX) is a company that makes alternative fuel engines and power systems for the industrial sector. It also servers data centers.

The stock has surged significantly so far in 2025 due to it moving from the OTC pink market to NASDAQ under the same ticker late last year. Moreover, Power Solutions International (NASDAQ:PSIX) reported solid Q3 2024 results. Net income rose 122% year-over-year to $17.3 million and revenue rose 9% to $125.8 million. Gross margin also expanded to 28.9%.

Data center demand has been surging here due to hyperscalers expanding their infrastructure. As such, PSIX’s power systems now account for about 40% of revenue.

The consensus price target of $37 implies 12.55% downside.

PSIX stock is up 44.75% year-to-date.

Overall, PSIX ranks 8th on our list of industrial stocks that are skyrocketing so far in 2025. While we acknowledge the potential of PSIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSIX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.