Enphase stock delivered one of its best days ever, torching a crowded short trade that had been betting on a ‘solar winter’.

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Q4 Beat Vs. Solar Inventory Glut

The spark was a massive fourth quarter earnings beat that shattered the narrative of a never-ending inventory glut.

Management made it clear that channel stockpiles have largely normalized and that European demand is rebounding. A testimony that seems to effectively end what bears had dubbed the Solar Winter.

This wasn't a bounce — it was a regime shift that forced Wall Street to re-rate the story in real time.

Enphase Stock Short Interest At 22.7% of Float

The move had squeeze written all over it. Enphase carried 28.7 million shares short, equal to 22.7% of the float, with a 5.1-day days-to-cover ratio. It’s exactly the kind of setup that turns a good print into a liquidation event.

More than 60% of trading happened off-exchange, suggesting dark-pool positioning was caught wrong-footed. As price surged, shorts scrambled to cover, amplifying every uptick.

Chart created using Benzinga Pro

50-Day Vs. 200-Day: Golden Cross Setup

The squeeze accelerated as banks rushed to reprice reality.

Wells Fargo and JPMorgan lifted price targets, with some revisions jumping as much as 55%. Analysts appear to be effectively admitting they were too bearish for too long. Even traditionally cautious shops like HSBC, signaled upgrades as Enphase logged its best single-day performance in years.

Technically, Enphase stock’s momentum is swinging fast. The 50-day SMA is closing in on the 200-day, setting up a potential Golden Cross that could pull in trend-followers if confirmed.

Green AI Power Rotation

This doesn't look like a dead-cat bounce. It looks like a V-shaped turnaround that leaves bears flat-footed.

Enphase is still down 23% over the past year, but up 50% over the past month. Now, that speed of recovery screams rotation, not relief rally.

If gains hold, the move could signal something bigger. Potentially, a return of capital to Green AI power — grids, electrification, and clean infrastructure as essential plumbing for the AI boom?

Investor takeaway: Solar wasn't broken — it was oversold. And, Enphase just proved it.

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