1 Growth Stock Down 50% to Buy Right Now

2025-12-14 18:50:00 ET

Power Solutions International (NASDAQ: PSIX) caught the artificial intelligence (AI) tailwinds in early 2024 and rode them to stock price gains exceeding 5,950% by mid-September 2025. Since hitting that high, the stock price has fallen 47%, partially on market worries about the power system manufacturer's accounting practices.

Concerns about overstated revenue growth can undoubtedly shift the bullish narrative on the stock, but the company still has potential. For instance, insiders still own roughly 80% of the shares, indicating continued confidence from the people at the top. The company also continues to benefit from the artificial intelligence (AI) trend, and it continues to report outsized revenue growth. Add in that the stock doesn't have the type of lofty valuation that has commonly been a concern for AI stocks . Its price-to-earnings ratio is just 11.3.

Those reasons and more suggest the recent price drop may present a long-term buying opportunity. Let's take a closer look.

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