Ideal Power (NASDAQ:IPWR) shares are charging up Thursday after the company shared some exciting news. Essentially, a new white paper outlines the potential for Ideal Power to dominate in a handful of markets. So what is that paper all about? And what else do you need to know about IPWR stock?
To start, investors should know that Texas-based Ideal Power focuses on developing and commercializing its B-TRAN technology. The company has been around since 2007, and has its hands in many popular industries like electric vehicles, renewable energy and data centers.
With that in mind, here is what you need to know about the move in IPWR stock today:
- Ideal Power says that it wants to help pioneer the future of energy use.
- To do this, it focuses on its Bi-Directional, Bi-polar Junction Transistor (B-TRAN) semiconductor technology.
- This is essentially a bi-directional power switch.
- For those unfamiliar, bi-directional power switches support bi-directional current flow in their on positions. When you flip the switch off, they support bi-directional voltage blocking.
- Bi-directional power switches are very interesting because of their potential applications.
- One such application would be when a single charger is powering multiple batteries. The on and off modes would prevent charged batteries from draining.
- They would also be able to keep one battery from charging another with its own resources.
- According to Ideal Power, its customers are in the industrial, alternative energy, military and automotive markets.
- In those areas, it believes B-TRAN will reduce switching losses and lower operating costs.
- Today, the company shed more light on those potential uses.
- It sees its B-TRAN driving performance and cost savings in emerging markets including electric vehicles, solar and wind, and data center power supplies.
- IPWR stock is up more than 50% as a result.
What to Know About Ideal Power and IPWR Stock
Investors may not be incredibly familiar with Ideal Power, which makes sense because it has a market capitalization of just $42 million. However, the company sees itself capitalizing on emerging trends thanks to its B-TRAN technology. That may mean that IPWR stock finds itself staying in the spotlight.
For instance, Ideal Power says it has a total addressable market of $6 billion. Within that, the electric vehicle segment represents a $1.5 billion opportunity. Within that segment, Ideal Power thinks it can change the game and boost consumer adoption. Why? It believes its B-TRAN technology can directly improve driving range and reduce overall battery size. Its tech also facilitates vehicle-to-grid charging, which is another theme captivating investors in recent months.
The Bottom Line
For investors, all of the risks of a small and unknown stock are present here. However, there is reason to do some research on IPWR stock. President Joe Biden is making big moves in the climate arena, and he has promised to ultimately invest $2 trillion in clean energy infrastructure. If Ideal Power can leverage broad interest in battery storage and clean energy, shares could keep charging up.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
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