ENPH Stock Plunges Sharply After-Hours On Lower Residential Demand: Here's Why Retail Is Holding Tight

Retail investors remained steadfast in their bullish stance on Enphase Energy, citing tailwinds from AI data center demand and long-term growth opportunities.

• On Stocktwits, retail sentiment around Enphase Energy flipped from ‘bearish’ to ‘extremely bullish’ over 24 hours despite a sharp price slide. 
• CEO Badri Kothandaraman said in an earnings call with investors that the company’s IQ Solid-State Transformer was a major growth driver. 
• He said the transformer had amassed a pipeline of more than 50 potential customers, including a major cloud provider and a leading AI computing company. 

Shares of Enphase Energy Inc. (ENPH) plummeted nearly 15% in overnight trading late on Tuesday after the company’s third-quarter (Q3) earnings and cautious outlook weighed on the stock, sparking a selloff. 

However, retail investors remained bullish on the company, citing tailwinds from artificial intelligence data center demand and long-term growth opportunities. 

ENPH Stock: What’s Retail Saying?

Retail sentiment around ENPH stock flipped from ‘bearish’ to ‘extremely bullish’ over 24 hours despite the sharp slide in price. 

One user said, “$ENPH residential demand down, with higher rate environment. But data center construction demand high. Lot of micro inverters needed for data center power demand expansion.”

Another user noted, “$ENPH dollar cost average because its a No-Brainer. The world needs solar and we have just eclipsed nuclear power. Long ways to go.”

A third user commented, “$ENPH eventually it's a buy. Good company.”

A fourth bullish user said, “$ENPH good long term buying op.”

Enphase Gears Up For AI Power Demand

While the company’s Q3 results showed the core U.S. residential solar market facing headwinds from higher interest rates and expiring federal tax credits, growing AI demand is on the horizon. 

CEO Badri Kothandaraman said in an earnings call with investors that the company’s IQ Solid-State Transformer was a major growth driver. 

He noted that Enphase had recently achieved a major technical milestone, successfully demonstrating 13.8 kV AC to 800 VDC conversion in its Austin laboratory, and expects to demonstrate 34.5 kV capability in the fourth quarter. The company is also preparing megawatt-scale full system demonstrations in Q4.

“These are important steps towards validating our technology at scale and operating conditions required by AI data centers,” he said, adding that “customer engagement is accelerating.” 

The transformer had amassed a pipeline of more than 50 potential customers, including a major cloud provider and a leading AI computing company. The firm expects the pilot projects in 2027 and commercial sales in 2028.

“By 2030, we believe IQ SST has the potential to become a billion-dollar annual revenue business for Enphase in the data center market alone,” Kothandaraman said. 

ENPH Q3 Snapshot

The solar energy company posted revenue of $293.3 million, up marginally from the previous quarter but missed analyst estimates. Adjusted earnings came in at $0.41 per share, also below consensus. Global sell-through increased about 1% sequentially, while residential demand slowed. 

ENPH stock is down about 7% in 2026. 

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