A system and method for managing multiple discrete operating points to create a stable virtual operating point. One or more functional blocks within a processor produces data corresponding to an activity level associated with the respective functional block. A power manager determines a power consumption value based on the data once every given sample interval. In addition, the power manager determines a signed accumulated difference over time between a thermal design power (TDP) and the power consumption value. The power manager selects a next power-performance state (P-state) based on comparisons of the signed accumulated difference and given thresholds. Transitioning between P-states in this manner while the workload does not significantly change causes the processor to operate at a virtual operating point between supported discrete operating points.