Amorphous powder cores are promising components for next-generation power electronics. However, they present inherent challenges of internal air gaps and stresses during cold compaction, which significantly deteriorate soft magnetic properties. Here, we report the formation of a local adaptive insulation structure of biconcave lens in amorphous powder cores by ultrasonic rheomolding. Consequently, compared with conventional cold-compacted powder cores, the ultrasonic rheomolded powder cores offer significant simultaneous improvements in the permeability from 31.3–32.4 to 41.8–43.3 and the direct-current bias performance from 69.4–69.7% to 87.4–87.8% (7960 A/m), thereby overcoming the trade-off between permeability and direct-current bias performance. In particular, their core losses are as low as 13.73–15.45 kW/m3, approximately one twentieth of that of the cold-compacted powder cores (282.84–304.03 kW/m3) at a magnetic field of 100 mT and 100 kHz. The biconcave-lens insulation structure can effectively buffer the impact of high mechanical stress on the magnetization of magnetic powder particles, allowing for the ultrasonic rheomolded powder cores to maintain better magnetization efficiency and consequently resulting in excellent soft magnetic properties under the cooperative effect of very low internal stresses and low porosity. The ultrasonic rheomolded powder cores can be used as alternative core components in next generation miniaturized power electronics.