SolarEdge Targets $2.4B by 2029, Bets on AI Data Center Power Growth

SolarEdge Technologies NASDAQ: SEDG outlined plans to expand its residential and commercial solar business while pursuing a new power-conversion opportunity in artificial intelligence data centers, targeting $2.4 billion in revenue and a 35% gross margin by 2029. During the company’s Investor Day, SolarEdge said its projected 2029 revenue would consist of $1.8 billion from its core business and $600 million from AI-factory products. The company said the outlook represents a 23% compound annual growth rate from an estimated $1.29 billion of 2026 revenue. Management emphasized that its $1.29 billion figure for 2026 was not formal guidance. SolarEdge reiterated third-quarter revenue guidance of $310 million to $340 million and said it expects fourth-quarter revenue to be slightly below the third quarter because of seasonality. The company cited six consecutive quarters of year-over-year revenue growth, from $212 million to $345 million in the second quarter, as well as six quarters of margin expansion. It said EBITDA turned positive in the most recent quarter. The residential solar market is shifting from photovoltaic-only systems toward solar-plus-storage installations as export compensation declines and customers seek backup power, energy management and improved returns on their systems. The company’s Nexis residential energy platform was designed for this transition. The company said a system with a battery more than doubles SolarEdge’s revenue per installation compared with a PV-only system. SolarEdge said it has more than 4 million residential sites globally, with about 90% currently lacking battery storage. It described the installed base as representing “dozens of gigawatt hours” of potential battery demand. The company said it generated $20 million in upsell revenue during the second quarter from the Netherlands and Germany alone. Nexis offers 10.5% more annual energy harvest than string technology, based on validation by VDE Renewables. SolarEdge said Nexis can provide up to $7,000 in additional lifetime value to homeowners compared with a leading competitor, while its Sera AI energy-management companion can add more than $1,000 of annual savings. These figures were presented by the company. Nexis is offered as a single SKU covering 3.8 kilowatts to 13 kilowatts and can be installed in under 30 minutes. The system is designed to allow capacity additions without rewiring, according to the company. In commercial and industrial solar, SolarEdge said its share of U.S. rooftop installations rose from 29% in the fourth quarter of 2024 to 57% in the second quarter of 202