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On July 23, 2026, Vicor Corp (VICR) shares rose 6.5% to a current price of $231.38. Despite today's positive movement, the stock has seen significant volatility

Key Takeaways Vicor posted $143.4M in Q2 revenues and $1.04 EPS as Advanced Products sales jumped 45% sequentially.VICR expects nearly 10% Q3 revenue growth and more than $600M in 2026 revenues from Advanced Products gains.Vicor targets $2.5B in revenues and says a second fab is needed to support long-term capacity expansion. Vicor Corporation (VICR - Free Report) used its second-quarter 2026 earnings call to press a bigger message than the quarter’s headline beat. Management framed 2026 as the year its advanced power products and IP licensing model are gaining broader industry traction, particularly in AI infrastructure.

That framing mattered because executives paired stronger near-term revenue expectations with a more ambitious long-term capacity and margin story. The call also gave investors a clearer look at how licensing, second-generation vertical power delivery and a second chip fab fit together.

Vicor Leans on Licensing and Advanced ProductsThe company posted second-quarter revenues of $143.4 million, representing a 26.9% sequential gain and beating the Zacks Consensus Estimate of $138.7 million. Earnings per share (EPS) came in at $1.04, comfortably surpassing the Zacks Consensus Estimate of $0.62.

Advanced Products’ revenues climbed 45% from the first quarter to $94.2 million, lifting that business to 65.7% of total revenues. Brick Products’ revenues increased 2.4% sequentially to $49.2 million.

Chief financial officer James Schmidt highlighted a key licensing contribution. Royalty income from the most recent agreement added $15 million in second-quarter revenues, though he said accounting treatment will make that contribution uneven, with $5 million expected in the third quarter and $10 million per quarter for the following four quarters.

VICR Raises the Stakes in AI Power DeliveryGlobal sales and marketing head Philip Davies said Vicor’s updated long-term targets now call for $2.5 billion in revenues, 70% gross margin and 40% operating income, replacing the company’s earlier $1 billion revenues and 65% gross margin goals. He tied that shift to a two-pronged strategy built on power modules and IP licensing.

Davies put the heaviest emphasis on second-generation vertical power delivery, or VPD, for AI data centers. He said hyperscalers and OEMs need higher current gain and current density, and argued Vicor’s second-generation offering is ahead of current first-generation alternatives.

Chief executive officer Patrizio Vinciarelli reinforced that point in the Q&A. He said the company has completed development around a 3 amps-per-square-millimeter baseline for its lead customer and is working toward more than 4 amps per square millimeter late this year or early next year.

Vicor Points to a Stronger 2026 SetupSchmidt said book-to-bill was above 1 in the second quarter, while one-year backlog rose 26% sequentially to $379.7 million. The press release put the year-over-year backlog increase at 145%, showing how quickly demand has built.

Management used that demand picture to raise the near-term bar. Schmidt said Vicor expects nearly 10% sequential revenue growth in the third quarter and more than $600 million in 2026 revenues, supported by double-digit sequential increases in Advanced Products revenues.

Vinciarelli told analysts the 2026 uplift reflects both product revenue growth and new licensing deals. He added that the initial license signed in the second quarter does not include a sourcing relationship for the first couple of years, though that is expected to become part of the relationship alongside second-generation VPD capabilities.

VICR Ties Capacity Expansion to StrategyManagement also made clear that capacity is becoming a strategic constraint. Vinciarelli said the first chip fab is moving closer to full utilization, which is why the company is now working to secure a second facility. He told analysts VICR has several site options and expects to make decisions in the coming weeks.

Later in the call, Vinciarelli said the second fab will be necessary to support the path to $2.5 billion in revenues. He added that the selected site could support a facility two to three times the size of the first fab, though build-out would happen in stages. That response gave investors a more practical framework for how Vicor plans to scale without overbuilding too early.

Vicor Faces Margin and Timing QuestionsA Craig-Hallum analyst pressed management on product gross margin, noting that royalty revenues flattered the consolidated result. Schmidt responded that product margin should improve as utilization and cost absorption rise. He also said second-quarter product gross margin was weighed down by factory reconfiguration costs tied to moving equipment and preparing space for new tools. Those costs ran through cost of sales rather than being capitalized.

Q&A also sharpened the timetable around second-generation VPD. Davies said management expects engagement with a hyperscaler and a couple of OEMs through the rest of 2026, with those programs moving toward production systems in the late third quarter or the fourth quarter of 2027.

VICR Leaves the Call With a Bigger AgendaThe clearest takeaway from management’s tone was that Vicor no longer wants investors to view the story as a niche power-module supplier with episodic upside. Executives repeatedly linked licensing, AI power architecture and fab expansion into one broader growth framework.

At the same time, management stayed measured on customer-specific disclosures and exact design-win timing. That kept the call grounded in what the company says it can control now: adding capacity, expanding Advanced Products revenues and widening industry adoption of its IP.

Vicor’s Zacks SignalsVicor currently carries a Zacks Rank #2 (Buy), which points to favorable earnings estimate revision trends and generally signals stronger near-term performance potential than lower-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are more mixed. The stock has a Value Score of F, Growth Score of D and VGM Score of F, but a Momentum Score of A. That combination points to stronger momentum characteristics than value or growth appeal, while also underscoring that the Zacks Rank can change as estimate revisions adjust after the quarter’s results.

Vicor Corporation (VICR) Q2 2026 Earnings Call July 21, 2026 8:00 AM EDT

Company Participants

James Schmidt - Corporate VP, CFO, Treasurer, Corporate Secretary & Director
Philip Davies - Corporate VP of Global Sales & Marketing and Director
Patrizio Vinciarelli - Founder, Chairman, CEO & President

Conference Call Participants

Quinn Bolton - Needham & Company, LLC, Research Division
Richard Shannon - Craig-Hallum Capital Group LLC, Research Division
Justin Clare - ROTH Capital Partners, LLC, Research Division
John Dillon
Neil Gore
Donald McKenna
Joe DeBabny

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Second Quarter 2026 Vicor Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like now to turn the conference over to Jim Schmidt, Chief Financial Officer. Please go ahead.

James Schmidt
Corporate VP, CFO, Treasurer, Corporate Secretary & Director

Thank you. Good morning, and welcome to Vicor Corporation's earnings call for the second quarter ended June 30, 2026. I'm Jim Schmidt, Chief Financial Officer, and I'm in Andover with Patrizio Vinciarelli, Chief Executive Officer; and Phil Davies, Corporate Vice President, Global Sales and Marketing.

Earlier this morning, we issued a press release summarizing our financial results for the 3 and 6 months ended June 30, 2026. This press release has been posted on the Investor Relations page of our website, www.vicorpower.com. We also filed a Form 8-K today related to the issuance of this press release. I remind listeners this conference call is being recorded and is the copyrighted property of Vicor Corporation.

I also remind you various remarks we make during this call may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Except for historical information contained in this call, the matters discussed on this call, including any statements regarding current

July 21, 2026 07:00 ET  | Source: Vicor Corporation

ANDOVER, Mass., July 21, 2026 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2026. These results will be discussed at 8:00 a.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.

Product and royalty revenues for the second quarter ended June 30, 2026 totaled $143.4 million, a 26.9% sequential increase from $113.0 million in the first quarter of 2026, compared to $141.0 million from product revenues, royalty revenues and a patent litigation settlement of $45.0 million for the corresponding period a year ago.

Gross margin increased sequentially to $83.1 million for the second quarter of 2026, compared to $62.4 million for the first quarter of 2026, and decreased from $92.1 million for the corresponding period a year ago. Gross margin, as a percentage of revenue, increased to 58.0% for the second quarter of 2026, compared to 55.2% for the first quarter of 2026. Gross margin decreased from 65.3% for the corresponding period a year ago which included the aforementioned $45.0 million patent litigation settlement. Operating expenses increased sequentially to $48.2 million for the second quarter of 2026, compared to $45.5 million for the first quarter of 2026, and increased from $46.7 million for the corresponding period a year ago.

Net income for the second quarter was $49.8 million, or $1.04 per diluted share, compared to net income of $20.7 million, or $0.44 per diluted share, for the first quarter of 2026 and net income of $41.2 million or $0.91 per diluted share, for the corresponding period a year ago.

Cash flow from operations totaled $34.0 million for the second quarter, compared to cash flow used for operations of $(3.9) million in the first quarter of 2026, which included the impact of a $28.6 million payment of an award for past litigation, and cash flow from operations of $65.2 million for the corresponding period a year ago. Capital expenditures for the second quarter totaled $11.2 million, compared to $12.4 million for the first quarter of 2026 and $6.2 million for the corresponding period a year ago. Cash and cash equivalents as of June 30, 2026 increased 12.2% sequentially to approximately $453.6 million compared to approximately $404.2 million as of March 31, 2026.

Backlog for the second quarter ended June 30, 2026 totaled $380 million, a 26% sequential increase from $301 million at the end of the first quarter of 2026, and increased 145% from $155 million for the corresponding period a year ago.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within our first ChiP fab. As we get closer to full capacity utilization, we are taking steps toward a second fab for high current density 2nd Gen VPD ChiPs.

AI OEMs and Hyper-scalers are at a loss dealing with the current density and PDN limitations of 1st Gen. VPD systems. The industry’s fixation with PoL regulators (replacing VRs, operating from 12V or 6V, with IVRs, operating from 1.8V) merely trades off one handicap (low current density) for another (low current gain). Feeding IVRs with a current multiplier is an incremental opportunity for Vicor.

With its 2nd Gen VPD IP, Vicor is uniquely equipped to overcome the power system challenges standing in the way of future advances in TPUs, GPUs and Wafer Scale Engines.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, Tuesday, July 21, 2026 at 8:00 a.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 8:00 a.m. on July 21, 2026. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2025, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.

Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.

   For further information contact:

James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: [email protected]

VICOR CORPORATION             CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS   (Thousands except for per share amounts)              QUARTER ENDED SIX MONTHS ENDED (Unaudited) (Unaudited)         JUN 30, JUN 30, JUN 30, JUN 30, 2026
 2025
 2026
 2025
                Product revenue$112,926  $85,693 $210,930  $168,899Royalty revenue 30,426   10,353  45,391   21,115Total net revenues 143,352   96,046  256,321   190,014Patent litigation settlement -   45,000  -   45,000Total net revenues and patent litigation settlement 143,352   141,046  256,321   235,014Cost of product revenues 60,232   48,918  110,835   98,521Gross margin 83,120   92,128  145,486   136,493 Operating expenses:       Selling, general and administrative 27,601   27,952  50,793   53,089Research and development 20,641   18,791  42,931   38,168Total operating expenses 48,242   46,743  93,724   91,257        Income from operations 34,878   45,385  51,762   45,236        Other income (expense), net 4,045   3,657  7,564   6,791        Income before income taxes 38,923   49,042  59,326   52,027        Less: (Benefit) provision for income taxes (10,863)  7,842  (11,136)  8,266        Consolidated net income 49,786   41,200  70,462   43,761        Less: Net income attributable to       noncontrolling interest 14   8  26   30        Net income attributable to       Vicor Corporation$49,772  $41,192 $70,436  $43,731                Net income per share attributable       to Vicor Corporation:       Basic$1.08  $0.92 $1.54  $0.97Diluted$1.04  $0.91 $1.48  $0.97        Shares outstanding:       Basic 45,936   45,007  45,703   45,112Diluted 47,708   45,077  47,481   45,286  VICOR CORPORATION       CONDENSED CONSOLIDATED BALANCE SHEET  (Thousands)        JUN 30, DEC 31,  2026   2025  (Unaudited) (Unaudited)Assets       Current assets:   Cash and cash equivalents$453,582  $402,805 Accounts receivable, net 78,929   60,716 Inventories 104,489   91,340 Other current assets 33,346   32,502 Total current assets 670,346   587,363     Long-term deferred tax assets 38,746   27,463 Long-term investment, net 2,525   2,462 Property, plant and equipment, net 162,536   147,690 Other assets 20,009   20,853     Total assets$894,162  $785,831     Liabilities and Equity       Current liabilities:   Accounts payable$20,415  $12,290 Accrued compensation and benefits 15,321   12,031 Accrued expenses 7,662   3,691 Accrued litigation -   28,275 Sales allowances 4,414   3,136 Short-term lease liabilities 1,767   1,568 Income taxes payable 141   904 Short-term deferred revenue and customer prepayments 875   3,426     Total current liabilities 50,595   65,321     Long-term income taxes payable 3,132   3,086 Long-term lease liabilities 5,841   5,608 Total liabilities 59,568   74,015     Equity:   Vicor Corporation stockholders' equity:   Capital stock 472,396   462,805 Retained earnings 491,795   421,359 Accumulated other comprehensive loss (1,733)  (1,672)Treasury stock (128,139)  (170,935)Total Vicor Corporation stockholders' equity 834,319   711,557 Noncontrolling interest 275   259 Total equity 834,594   711,816     Total liabilities and equity$894,162  $785,831  

Posted by Defense World Staff on Jul 21st, 2026

Andar Capital Management HK Ltd grew its position in Vicor Corporation (NASDAQ:VICR – Free Report) by 71.9% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 55,000 shares of the electronics maker’s stock after acquiring an additional 23,000 shares during the quarter. Vicor comprises approximately 7.6% of Andar Capital Management HK Ltd’s portfolio, making the stock its 6th biggest position. Andar Capital Management HK Ltd owned approximately 0.12% of Vicor worth $8,855,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. Vanguard Group Inc. lifted its holdings in shares of Vicor by 2.5% during the fourth quarter. Vanguard Group Inc. now owns 2,534,534 shares of the electronics maker’s stock worth $277,785,000 after purchasing an additional 60,963 shares during the period. Dimensional Fund Advisors LP grew its position in Vicor by 4.6% in the 3rd quarter. Dimensional Fund Advisors LP now owns 578,515 shares of the electronics maker’s stock valued at $28,759,000 after buying an additional 25,393 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in Vicor by 1,542.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 439,820 shares of the electronics maker’s stock valued at $48,205,000 after buying an additional 413,038 shares during the period. The Manufacturers Life Insurance Company raised its position in Vicor by 3,918.9% during the 4th quarter. The Manufacturers Life Insurance Company now owns 432,189 shares of the electronics maker’s stock worth $47,368,000 after buying an additional 421,435 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in Vicor by 39.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 374,088 shares of the electronics maker’s stock worth $41,000,000 after buying an additional 106,206 shares during the last quarter. 47.45% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades Several research analysts recently issued reports on the stock. Needham & Company LLC increased their price target on shares of Vicor to $400.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Wall Street Zen cut Vicor from a “buy” rating to a “hold” rating in a research report on Saturday, April 25th. Weiss Ratings reissued a “hold (c+)” rating on shares of Vicor in a research note on Monday, June 1st. Roth Capital raised their price target on Vicor from $285.00 to $375.00 and gave the company a “buy” rating in a report on Monday, June 22nd. Finally, Craig Hallum lifted their price target on Vicor to $450.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $408.33.

Read Our Latest Stock Report on Vicor

Insider Buying and Selling at Vicor In other Vicor news, CEO Patrizio Vinciarelli sold 20,000 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $342.10, for a total transaction of $6,842,000.00. Following the sale, the chief executive officer owned 8,828,090 shares in the company, valued at approximately $3,020,089,589. This represents a 0.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 392,682 shares of company stock worth $123,899,833. Company insiders own 28.30% of the company’s stock.

Vicor Trading Down 2.8% VICR stock opened at $230.99 on Tuesday. The company’s 50-day moving average price is $297.90 and its 200 day moving average price is $221.96. Vicor Corporation has a 52 week low of $41.76 and a 52 week high of $382.65. The company has a market cap of $10.53 billion, a P/E ratio of 77.25 and a beta of 2.33.

Vicor (NASDAQ:VICR – Get Free Report) last posted its earnings results on Tuesday, April 21st. The electronics maker reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.04. The company had revenue of $112.97 million for the quarter, compared to analyst estimates of $109.05 million. Vicor had a return on equity of 20.21% and a net margin of 28.98%.Vicor’s revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.06 earnings per share. On average, equities research analysts expect that Vicor Corporation will post 2.94 earnings per share for the current year.

About Vicor (Free Report)

Vicor Corporation is a designer and manufacturer of modular power components and systems, serving a wide range of industries that demand high performance and efficiency. Headquartered in Andover, Massachusetts, the company develops power conversion solutions that help customers optimize energy delivery in applications from telecommunications and data centers to industrial and automotive systems.

The company’s product portfolio includes high-density DC-DC converters, AC-DC front-end modules, point-of-load regulators and complete power systems that combine multiple conversion stages in a single package.

Further Reading Five stocks we like better than Vicor The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding VICR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Vicor Corporation (NASDAQ:VICR – Free Report).

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Key Takeaways Vicor targets AI data centers with compact, efficient power systems for dense processors and accelerators.Advanced Products revenue rose 3.7% sequentially, while first-quarter backlog reached $300.6 million.Vicor sees Fab 1 supporting at least a $1.5 billion annual revenue run rate as capacity expands. Vicor (VICR - Free Report) sits in a part of the AI build-out that is becoming harder to ignore. Faster processors matter, but dense computing also raises the importance of power conversion, current density and heat management.

That puts Vicor’s architecture story close to the hardware bottlenecks shaping data centers. The company is not just selling components; it is trying to make power delivery a strategic part of AI system design.

Why AI Chips Need More From VicorHigher processor power density makes power delivery a more critical design constraint. Vicor’s Advanced Products are concentrated in data-center and hyperscaler applications, where AI accelerators, graphics processing units and custom application-specific integrated circuits need compact, efficient power systems.

The company’s Factorized Power Architecture, Vertical Power Delivery and Modular Current Multiplier technologies are positioned around higher efficiency, greater power density and lower thermal losses than conventional power solutions.

VICR’s Mix Shows the Trend in ActionVicor’s mix already reflects this demand shift. Advanced Products, including royalty revenues, rose from 55.3% of total revenues in 2023 to 61% in 2025 and represented 57.5% of revenues in the first quarter of 2026.
 

First-quarter results showed the same direction. Advanced Products revenues increased 3.7% sequentially to $64.9 million, while royalty revenues rose 39.1% year over year to $14.97 million. Management also cited strong bookings across high-performance computing, industrial and aerospace and defense markets, with book-to-bill above 2.0.

Vicor’s one-year backlog reached $300.6 million in the first quarter of 2026, up 70% sequentially, and management described near-term capacity as essentially sold out.

Vicor is responding at its first chip fabrication facility. It now believes Fab 1 can support an annual revenue run rate of at least $1.5 billion, up from the prior target of roughly $1 billion, helped by cycle-time reductions, debottlenecking and moving selected process steps to a nearby Vicor-controlled site.

Vicor’s Licensing Trend Could Matter MoreLicensing is becoming more than a secondary revenue stream. Royalty revenues were about $15 million in the first quarter of 2026, and 2026 revenue guidance of nearly $570 million assumes royalty revenues rise only somewhat under existing agreements.

That creates business-model leverage if more agreements are signed. At the same time, earnings quality can be more sensitive to legal costs and enforcement timing, since operating expenses increased 4% sequentially to $45.5 million in the first quarter, partly due to higher legal spending tied to intellectual-property enforcement.

What This Means for VICR InvestorsFor investors, VICR offers exposure to a specific AI infrastructure constraint rather than broad semiconductor demand alone. The company’s 2026 outlook calls for nearly $570 million in revenues, supported by AI-driven demand and capacity expansion efforts.

VICR shares have jumped a whopping 137.8% year to date (YTD), outperforming the Zacks Computer & Technology sector’s return of 15.8%. The company has outperformed competitors, including Monolithic Power (MPWR - Free Report) , Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) over the same timeframe. Shares of Monolithic Power, Analog Devices and Texas Instruments have appreciated 49.2%, 44.1% and 73.6%, respectively, YTD.

The risk is execution. The second three-dimensional interconnect line is expected to be installed between the third quarter and the fourth quarter of 2026, but it is not expected to contribute meaningfully until late 2026 and beyond. That leaves shipments, customer ramps and royalties as key variables.

ConclusionThe bottom line is that Vicor’s story fits an AI supply chain where power architecture is becoming more strategic. Demand and backlog support the operating case, but valuation leaves less room for disappointment after a large rerating.

VICR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Vicor's AI demand drove a book-to-bill above 2 and a $300.6 million one-year backlog.VICR expects nearly $570 million in 2026 revenues as a lead computing customer ramps production.Vicor targets at least $1.5 billion in Fab 1 capacity, while royalties add a second growth lever. Vicor (VICR - Free Report) is drawing investor attention as AI systems require denser and more efficient power delivery. The company’s role is not in processors themselves, but in helping those processors receive power more effectively.

That makes Vicor’s outlook a mix of demand, manufacturing execution and intellectual property monetization. The opportunity is clear, but so are the operating constraints.

How Vicor Fits the AI Power StackVicor designs modular power components and systems used to convert electrical power across data centers, transportation, military and industrial markets. Its core strength is high-density AC and DC power conversion, including 48V distribution.

This matters as AI accelerators, GPUs and custom ASICs push processor power density higher. Monolithic Power Systems (MPWR - Free Report) is a relevant peer in power-management semiconductors.

Advanced Products have become the main AI-linked growth engine. They accounted for 61% of Vicor’s net revenues in 2025, with demand concentrated in data center and hyperscaler computing.

VICR’s Growth Drivers Are Getting ClearerThe bullish case rests on order strength and a widening backlog. In the first quarter of 2026, Vicor’s book-to-bill ratio was above 2, showing that orders were more than twice the value of products shipped.

The one-year backlog reached $300.6 million, up 70% sequentially. Management also expects 2026 revenues of nearly $570 million, supported by AI-driven demand and a lead computing customer continuing a steep production ramp.

Advanced Products and royalties are central to that outlook. Royalty revenues were about $15 million in the first quarter, while product revenue rose to $98 million.

Why Vicor’s Factory Plan MattersDemand is no longer the only question. The bigger swing factor is whether Vicor can convert orders into shipments without straining its operations.

Management expects the company to remain capacity constrained for a substantial period. Near-term capacity is tight, and the second 3Di line is expected to be installed in the third-to-fourth-quarter time frame of 2026.

The company is trying to add flexibility inside its existing footprint. Vicor raised its Fab 1 annual revenue capacity target to at least $1.5 billion from roughly $1 billion through cycle-time reductions, debottlenecking and moving some process steps to a nearby Vicor-controlled site.

Vicor’s Licensing Adds a Second LeverLicensing gives Vicor a second earnings lever beyond product shipments. The company licenses technology and receives recurring royalties, which can support margins without requiring the same manufacturing volume.

Management’s 2026 revenue outlook assumes no new licensing agreements before the second International Trade Commission case reaches final determination in 2027. That leaves possible upside if enforcement actions lead to earlier agreements.

Still, licensing is harder to model than product demand. Legal outcomes, agreement timing and enforcement costs can make the profit contribution uneven.

What Could Hold VICR BackThe main risk is execution. Strong end-market demand does not automatically translate into smooth revenue recognition when capacity is constrained. Customer timing also matters. Vicor’s shift toward larger high-volume customers can improve scale, but it raises exposure to forecast changes from original equipment manufacturers, original design manufacturers and contract manufacturers.

Tariff and geopolitical risks add another layer. The company incurred approximately $7.4 million of tariff expenses in 2025 and still generates meaningful revenues from international markets. Legal spending is another watch item. First-quarter operating expenses rose sequentially to $45.5 million, including higher costs tied to intellectual-property enforcement.

Apart from Monolithic Power, Vicor faces stiff competition from the likes of Texas Instruments (TXN - Free Report) and Analog Devices (ADI - Free Report) in power management. Monolithic Power is Vicor’s closest direct competitor in AI power delivery, offering highly integrated power management ICs and multiphase regulators that have won significant GPU and AI server designs through strong integration and cost advantages. Analog Devices and Texas Instruments are much larger diversified analog semiconductor companies with broad portfolios spanning industrial, automotive, communications and embedded markets.

On a year-to-date (YTD) basis, Vicor has outperformed Monolithic Power, Analog Devices and Texas Instruments. Shares of Monolithic Power, Analog Devices and Texas Instruments have appreciated 49.2%, 44.1% and 73.6%, respectively, while Vicor has jumped 137.8%, YTD.

VICR Stock's Price Performance
Image Source: Zacks Investment Research

ConclusionThe bottom line is that Vicor has a credible AI power-delivery story, but the stock is not a clean one-way trade. Demand, backlog and licensing all point to growth potential, while capacity and legal timing keep execution risk high.

VICR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Vicor is expanding manufacturing capacity to meet AI-driven demand and support future design wins.Vicor invested $12.4 million in capital expenditures during Q1 to expand manufacturing capacity.Vicor expects expanded production capacity to better convert its $300.6 million backlog into revenues. Vicor Corporation (VICR - Free Report) is strengthening its long-term growth outlook by expanding manufacturing capacity to support increasing demand for its advanced power solutions. As AI infrastructure investments accelerate, VICR’s production expansion is expected to remove a key supply constraint, enabling it to serve existing customers more effectively while supporting future design wins. With demand already outpacing available supply, capacity expansion appears to be the primary catalyst for Vicor's next growth phase.

Demand visibility remains strong heading into the second half of 2026, making additional manufacturing investments increasingly important. First-quarter 2026 revenues increased 20.2% year over year to $113 million, while its book-to-bill ratio remained above 2. One-year backlog climbed 70% sequentially to $300.6 million, reflecting demand well above current production levels. Capital expenditures totaled $12.4 million during the quarter, with additional investments planned to expand manufacturing capacity.

Vicor is enhancing output at its existing Federal Street manufacturing facility through equipment additions and process optimization while advancing plans for a second fabrication facility. The company believes these initiatives can significantly increase the revenue-generating capacity of its existing operations, providing greater flexibility to support customer ramps before the second fab becomes operational. This phased expansion strategy should help meet growing demand without disrupting execution.

The strategy is already showing encouraging signs as Vicor raised its second-quarter 2026 revenue guidance to $142 million from $126 million, reflecting stronger product revenue expectations. With demand exceeding current production capacity, the company's manufacturing expansion should improve its ability to convert backlog into revenues, potentially unlocking its next phase of sustainable growth.

How Do VICR’s Rivals Stack Up?Vicor operates alongside Monolithic Power Systems (MPWR - Free Report) and Analog Devices (ADI - Free Report) in the power management market. Monolithic Power Systems continues to expand its manufacturing capabilities and product portfolio to support AI and cloud infrastructure demand, while Analog Devices is investing to strengthen production capabilities and supply chain resilience for high-performance power solutions. Unlike Monolithic Power Systems and Analog Devices, Vicor's current investment focus is on expanding manufacturing capacity to address supply constraints and support its next phase of revenue growth.

VICR’s Price Performance, Valuation & EstimatesVicor stock has surged 137.8% year to date, outperforming the Zacks Electronic Miscellaneous Components industry's decline of 14.1% and the broader Computer and Technology sector's appreciation of 15.8%.

VICR’s YTD Price Return Performance
Image Source: Zacks Investment Research

VICR shares are trading at a forward 12-month price/sales of 14.64X compared with the broader sector’s 6.85X.

VICR’s Forward 12 Months (P/S) Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VICR’s 2026 EPS is pegged at $2.94 per share, up 23 cents over the past 30 days, indicating year-over-year growth of 12.64%.

Vicor carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VICR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Vicor is expanding IP licensing to generate recurring royalties beyond direct product sales.VICR expects licensing and hardware sales to create a dual revenue model for AI power solutions.Vicor is investing in patent protection and licensing to broaden technology adoption and diversify revenues. Vicor Corporation (VICR - Free Report) is strengthening its long-term growth strategy by expanding its intellectual property licensing business, creating an additional avenue to monetize its proprietary power conversion technologies beyond direct product sales. As AI infrastructure providers, hyperscalers and semiconductor companies adopt increasingly complex power architectures, demand for advanced power delivery solutions continues to build. This positions Vicor to generate recurring royalty income by licensing its patented technologies to a broader customer base while reinforcing its competitive standing in power electronics.

Licensing has the potential to become an increasingly meaningful contributor to Vicor's financial profile. Royalty income requires limited incremental manufacturing investment, allowing the company to leverage decades of research and development across a wider ecosystem. VICR continues to invest in expanding its licensing practice and protecting its intellectual property through patent enforcement, a discipline that should support broader adoption of its technologies over time. The approach also gives customers a path to access Vicor's innovations through licensing agreements, creating a scalable, high-margin revenue stream that complements the company's core hardware business.

The opportunity is reinforced by next-generation AI processors requiring increasingly sophisticated power delivery architectures. Vicor expects licensing to work alongside its product portfolio, benefiting whether customers purchase its power modules directly or license its proprietary technologies, a dual revenue model that could diversify revenue sources and improve long-term earnings quality as adoption expands across AI, hyperscale computing and other high-performance applications.

The Zacks Consensus Estimate for Vicor's 2026 revenues is pegged at $594.05 million, indicating 31.22% year-over-year growth, pointing to expectations that this licensing-driven expansion will increasingly factor into the company's broader growth trajectory ahead, supporting a more durable and diversified earnings base over the long term.

VICR Faces Stiff CompetitionVicor faces stiff competition from Monolithic Power Systems (MPWR - Free Report) and Analog Devices (ADI - Free Report) . Monolithic Power Systems continues to expand its power management portfolio for AI, cloud computing and industrial applications through highly integrated semiconductor solutions. Analog Devices leverages its broad analog and power management portfolio to address data center, communications and automotive demand.

Monolithic Power Systems continues investing in innovation to strengthen its competitive position, while Analog Devices is expanding advanced power solutions for next-generation computing platforms. Although Monolithic Power Systems and Analog Devices compete across similar end markets, Vicor's expanding intellectual property licensing strategy provides an additional avenue for long-term value creation.

VICR’s Price Performance, Valuation & EstimatesVicor Corporation shares have surged 140.1% year to date, outperforming the Zacks Electronic Miscellaneous Components industry's decline of 15.1% and the broader Computer and Technology sector's appreciation of 14.7%.

VICR’s YTD Price Return Performance
Image Source: Zacks Investment Research

VICR shares are trading at a forward 12-month price/sales of 14.95X compared with the broader sector’s 6.86X.

VICR’s Forward 12 Months (P/S) Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VICR’s 2026 EPS is pegged at $2.94 per share, up by 23 cents over the past 30 days, indicating year-over-year growth of 12.64%.

Vicor carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Vicor raised its Q2 revenue outlook to $142M from $126M on product growth and an added licensee.VICR sees demand from AI, industrial, aerospace and defense, with backlog boosted by strong bookings.VICR is expanding capacity and licensing, while higher margins and backlog support its growth outlook. Vicor Corporation (VICR - Free Report) shares have surged 160.3% year to date, outperforming the Zacks Electronic Miscellaneous Components industry's return of 74.9% and the broader Computer and Technology sector's appreciation of 14.7%. The rally has outpaced peers, such as Monolithic Power Systems (MPWR - Free Report) , Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) , shares of which have returned 48.5%, 43.4% and 74.9%, respectively, over the same period.

VICR shares are benefiting from a positive outlook as the company expects second-quarter revenues of $142 million, raised from a prior estimate of $126 million, on the back of rising product revenues and an additional licensee to its patented power system technology. Strong bookings across high-performance computing, industrial and aerospace and defense markets have driven backlog sharply higher, reinforcing confidence in the growth trajectory. Let us find out whether investors should buy VICR stock right now.

VICR Price Performance
Image Source: Zacks Investment Research

VICR Benefits From the AI Power Delivery RampVICR designs and manufactures modular power components and complete power systems, with vertical power delivery increasingly central to its growth. Vicor's lead high-performance computing customer is in the midst of a steep production ramp for its wafer-scale engine, and a generational transition is expected in the second half of 2026. The company's second-generation Vertical Power Delivery (VPD) solution combines a thin package format with high current density and current multiplication, attributes that competing approaches have struggled to match.

Chipmakers and hyperscalers are pushing toward wafer-scale and multi-die chiplet packaging, increasing the need for pure vertical power delivery at the point of load. VICR's positioning at the center of this shift, combined with capacity earmarked for existing strategic customers, supports continued above-industry growth as engagement with additional high-performance computing customers follows the lead customer's generational transition.

VICR Ramps Up Capacity and Licensing to Expand ShareVICR is strengthening its position through capacity expansion and a significant licensing program. The company has identified opportunities to raise capacity at its Andover facility toward a $1.5 billion annual revenue run rate, up from a prior $1 billion target, aided by reduced cycle times and the ability to redeploy certain process steps to a nearby facility as a bridge to a second fab. This contrasts with the more measured capacity additions typical of Texas Instruments, whose scale is already largely built out.

VICR's licensing business is also emerging as a durable growth driver. The company has signed an all-inclusive licensing agreement with an additional original equipment manufacturer covering its full patent portfolio, including Factorized Power and Vertical Power Delivery architectures. Licensing carries near-full-margin economics, and management continues to expect licensing income could eventually reach as much as 50% of product revenues, a structural advantage that Analog Devices does not share to the same degree.

VICR's broad industrial base is also a source of strength, particularly among semiconductor test equipment customers, while aerospace and defense spending are rising amid geopolitical developments and higher defense budgets. These end markets diversify VICR's revenue base beyond any single compute customer, distinguishing it from Monolithic Power Systems, whose exposure remains concentrated primarily in AI server and data center applications.

The Zacks Consensus Estimate for 2026 EPS is pegged at $2.94 per share, up by 23 cents over the past 30 days, indicating year-over-year growth of 12.64%.

VICR's Valuation is Backed by FundamentalsVICR currently trades at a forward 12-month price-to-sales multiple of 16.26X, well above the industry average of 4.08X and the broader sector average of 6.88X. The premium also exceeds peers Texas Instruments and Analog Devices, which trade at 12.66X and 11.96X, respectively, though it is roughly in line with Monolithic Power Systems at 16.16X.

The premium looks justified given VICR's differentiated position in VPD, its expanding high-margin licensing business and a current backlog of $300.6 million that provides revenue visibility well beyond the current quarter. Gross margin reached 55.2% in the first quarter of fiscal 2026, up 800 basis points year over year, underscoring the strength of VICR's growth trajectory relative to more diversified analog peers.

VICR's P/S F12M Ratio
Image Source: Zacks Investment Research

ConclusionDespite VICR's remarkable rally year to date, its long-term growth story remains intact. Rising demand for vertical power delivery across AI compute, along with steady strength in industrial and aerospace and defense markets, continues to support favorable demand conditions. Capacity expansion and an expanding licensing program position it for continued above-industry growth as second-generation VPD adoption broadens beyond its lead customer. With backlog building and margins expanding, VICR's premium valuation appears reasonably supported, making the stock a compelling buy for investors seeking exposure to the AI power delivery supply chain.

Vicor carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Vicor (VICR - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts' growing optimism on the earnings prospects of this modular power components company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Vicor, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe company is expected to earn $0.62 per share for the current quarter, which represents a year-over-year change of -31.9%.

The Zacks Consensus Estimate for Vicor has increased 34.78% over the last 30 days, as two estimates have gone higher compared to no negative revisions.

Current-Year Estimate RevisionsFor the full year, the earnings estimate of $2.94 per share represents a change of +12.6% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Vicor. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 8.3%.

Favorable Zacks RankThanks to promising estimate revisions, Vicor currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Vicor because of its solid estimate revisions, as evident from the stock's 11.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

Vicor is rated Buy with a $380 price target, offering pure-play exposure to AI datacenter power delivery—a critical, underappreciated bottleneck. VICR's proprietary 48V architecture and Vertical Power Delivery address hyperscaler needs, enabling significant power and cooling savings at rack-level density. Q2 guidance was raised mid-quarter to $142M, with backlog surging to $300.6M; management targets 60–65% gross margins as AI module volumes scale.

On June 23, 2026, Vicor Corp VICR shares fell 8.1% to $336.16, a significant drop in the context of a volatile year for the stock. Over the past 52 weeks, VICR has fluctuated between a low of $41.76 and a high of $369.40, showcasing its dramatic price movements in recent months.

GF Value™ verdict: Current price of $336.16 vs GF Value™ of $62.88, indicating a 434.6% overvaluation.GF Score™ of 81/100 signifies a strong overall performance relative to peers.Insider activity shows that insiders sold $175.7M worth of shares in the last 3 months, with no buying activity reported. Is VICR Overvalued or Undervalued? With a current price of $336.16 and a GF Value™ of $62.88, Vicor Corp is significantly overvalued by approximately 434.6%. This valuation risk suggests that the stock might face downward pressure as the market corrects itself towards its intrinsic value. The GF Valuation label indicates that the stock is "Significantly Overvalued," highlighting a substantial margin of safety for potential buyers if the stock were to decline towards its fair value.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given this significant discrepancy between the current price and the estimated fair value, investors may need to exercise caution and consider the potential risks involved with investing in an overvalued stock like VICR.

How Does VICR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 112.4x 77.3x Forward P/E 115.6x N/A The current P/E (TTM) of 112.4x is significantly above its 5-year median P/E of 77.3x, indicating that VICR is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, further reinforcing the conclusion that the stock is overvalued in the current market environment.

What Does VICR's GF Score™ Tell Us? Metric Rating GF Score™ 81/100 Financial Strength 8/10 Profitability 8/10 Growth 10/10 Valuation 1/10 Momentum 6/10 Vicor Corp's GF Score™ of 81/100 indicates a strong overall performance, particularly in growth, where it achieves a perfect score of 10/10. However, the valuation rank of just 1/10 is a significant red flag, suggesting that the high growth potential is not currently reflected in a reasonable valuation. The financial strength and profitability scores of 8/10 also indicate that while the company is financially sound, its current price does not support an attractive investment case.

What Are Insiders Doing with VICR Stock? In the last three months, insider activity has been notably bearish, with insiders selling $175.7 million worth of shares and no buying activity reported. This trend raises concerns about the management's confidence in the company's future performance, as substantial selling by insiders could signal that they believe the stock is overvalued or that they anticipate challenges ahead. The absence of insider buying further emphasizes caution for potential investors.

What This Means for Investors Based on the GF Value™ assessment, Vicor Corp VICR is currently overvalued. With a significant gap between the current price and the estimated fair value, potential investors should be wary of entering a position at this time. The company's strong growth metrics and financial strength are overshadowed by the alarming valuation and insider selling activity.

For the complete analysis, visit the Vicor Corp VICR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is VICR's GF Score™?

VICR's GF Score™ is 81/100, indicating a strong overall performance relative to its peers, with notable strengths in growth and financial strength.

Is VICR overvalued or undervalued?

VICR is considered overvalued, with a GF Value™ of $62.88 compared to its current price of $336.16, suggesting a significant margin of safety for potential investments.

What is VICR's P/E ratio?

VICR's P/E (TTM) is 112.4x, which is significantly above its 5-year median P/E of 77.3x, reinforcing the notion that the stock is currently overvalued.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Vicor (VICR - Free Report) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this modular power components company would post earnings of $0.38 per share when it actually produced earnings of $1.01, delivering a surprise of +165.79%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Vicor, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $112.97 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $93.97 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Vicor shares have added about 105.1% since the beginning of the year versus the S&P 500's gain of 3.9%.

What's Next for Vicor?While Vicor has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Vicor was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.53 on $121.7 million in revenues for the coming quarter and $2.12 on $528.9 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Components is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

TE Connectivity (TEL - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 22.

This electronics maker is expected to post quarterly earnings of $2.70 per share in its upcoming report, which represents a year-over-year change of +28.6%. The consensus EPS estimate for the quarter has been revised 3.6% higher over the last 30 days to the current level.

TE Connectivity's revenues are expected to be $4.7 billion, up 13.6% from the year-ago quarter.

Mr. Market was clearly energized by power systems specialist Vicor (VICR +2.51%) on Tuesday. Investors flocked to the company's stock after it reported revenue and earnings that topped estimates. By the end of the trading day, the shares had risen by almost 10%.

Plugged in That morning, Vicor reported that its net revenue for the first quarter of this year was just under $113 million. This is 20% higher than the company's take for the same period of 2025. Net income under generally accepted accounting principles (GAAP) improved far more dramatically, increasing by more than eightfold to land just shy of $21 million ($0.44 per share).

Image source: Getty Images.

Compounding those meaty growth rates, Vicor beat the consensus analyst estimates on both the top and bottom lines. Collectively, prognosticators tracking the specialty tech stock were modeling revenue of barely over $109 million and per-share net income of $0.37.

Vicor is in vogue these days. The company said its backlog for the first quarter leaped 75% year over year to $301 million.

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Strong momentum for the future In the earnings release, Vicor quoted CEO Patrizio Vinciarelli attributing the impressive growth rates to "rising demand across high-performance compute, automatic test equipment, and industrial, aerospace, and defense applications."

In other words, the company's success and popularity aren't just coming from one or two customer clusters; they're impressively broad-based. That would give me hope that Vicor's prosperous times are set to continue.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Vicor (NASDAQ:VICR) reported first-quarter 2026 results that included higher sequential revenue, a sharp year-over-year improvement in gross margin, and a significant jump in backlog as demand strengthened across high-performance computing, industrial, and aerospace and defense markets.

First-quarter revenue rises; advanced products remain the majority Chief Financial Officer James Schmidt said Vicor recorded product and royalty revenue of $113.0 million for the quarter ended March 31, 2026, up 5.3% sequentially from $107.3 million in the fourth quarter of 2025 and up 20.2% from $94.0 million in the first quarter of 2025.

Schmidt said advanced products revenue increased 3.7% sequentially to $64.9 million, while brick products revenue rose 7.7% to $48.0 million. Advanced products represented 57.5% of total revenue, down from 58.4% in the prior quarter, with bricks rising correspondingly to 42.5%.

Shipments to stocking distributors increased 0.5% sequentially and rose 63.6% year-over-year, Schmidt said. Exports declined slightly as a share of total revenue to about 48.9% from 49.3% in the prior quarter.

Margins, expenses, and earnings Vicor posted a consolidated gross margin of 55.2%, down 20 basis points sequentially but up 800 basis points from the year-ago quarter, Schmidt said.

Total operating expense increased 4% sequentially to $45.5 million, which Schmidt attributed in part to “higher legal expenses related to enforcement of our IP.” He also detailed equity-based compensation expense totaling approximately $3.9 million across cost of goods sold, SG&A, and R&D.

Vicor recorded a tax benefit of about $0.3 million, reflecting an effective tax rate of -1.3%. Schmidt said the quarter’s tax rate was “positively impacted by stock options exercised in the quarter.” Net income totaled $20.7 million, and GAAP diluted EPS was $0.44 on a fully diluted share count of 47.254 million shares.

On a follow-up question about taxes, Schmidt said the company’s planning assumption going forward is “more in line with a 20% kind of a rate,” while noting that stock option exercises created a one-time discrete benefit in Q1.

Cash, cash flow, and capital spending Schmidt said cash and cash equivalents ended the quarter at $404.2 million, up $1.4 million sequentially. Accounts receivable (net of reserves) totaled $67.4 million, with DSOs of 42 days. Inventories increased 3.8% sequentially to $94.8 million, with annualized inventory turns of 2.1.

Cash flow used for operating activities was $3.9 million for the quarter, which Schmidt said was net of a $28.6 million litigation settlement payment. Capital expenditures were $12.4 million. Vicor ended the quarter with construction in progress of about $10.7 million—primarily manufacturing equipment—and Schmidt said roughly $33.9 million remained to be spent.

Bookings, backlog, and guidance Schmidt said first-quarter book-to-bill was above 2, and one-year backlog increased 70% sequentially to $300.6 million. In response to analyst questions, Philip Davies, corporate vice president of global sales and marketing, said the backlog and bookings figures the company quotes are within a “12-month window” and that backlog “rolls pretty much over the next 12 months.”

Looking ahead, Schmidt guided to Q2 revenue of nearly $126 million and full-year 2026 revenue of nearly $570 million, while also signaling expectations for “margin expansion” alongside revenue growth.

Management said the full-year guidance reflects conservative assumptions for licensing. Schmidt said the outlook is based on an assumption that Vicor will not enter new licensing agreements until its “second ITC case gets to its final determination in 2027,” though he added that additional exclusion orders could motivate new deals. CEO Patrizio Vinciarelli said royalties should increase “somewhat based on existing licensing agreement,” while emphasizing the company set aside any “early deals” in guidance even though agreements could occur earlier than 2027.

VPD technology focus and capacity expansion plans Davies said bookings were strong across Vicor’s high-performance computing, industrial, and aerospace and defense markets. In computing, he said the company’s lead customer is continuing “a steep production ramp of its wafer-scale engine with best-in-class AI inference performance,” and argued that wafer-scale engines and future advanced packages “are uniquely enabled by vertical power delivery.” He added that Vicor’s second-generation VPD solution is expected to enable further advances, describing a package with “3 amps per sq mm current density” and a “current multiplication factor of up to 40” in a “1.5 mm thin package.”

Vinciarelli told analysts the next generational transition for the lead customer’s VPD platform will be “enabled in the second half of this year,” with a ramp expected to begin before year-end. He said engagement with additional customers for second-generation VPD is expected to follow that transition, while also stressing that Vicor expects to remain capacity-constrained for “a substantial timeframe,” driving a selective approach to customer additions.

On manufacturing capacity, Vinciarelli said Vicor has identified “elasticity” for expansion within its leased Andover facility, providing flexibility in timing and location decisions for a second fab. He said the company now sees an opportunity to support as much as 50% above what had been planned for annual revenue output at the leased facility, and said Vicor has “come around to focusing on existing buildings as opposed to a piece of land” to execute more rapidly.

Vinciarelli also said Vicor had previously “earmarked capacity out of Fab One at roughly a $1 billion per year run rate,” but now sees “a way to get that to at least $1.5 billion,” citing shorter cycle time and increased capacity in historically limiting process steps, along with redeploying some less critical steps into a nearby building under Vicor control. He said this approach could support margin expansion by reducing incremental equipment and depreciation requirements.

Addressing capacity additions, Vinciarelli said Vicor purchased “a second 3Di (three-dimensional interconnect) line” that is expected to be installed in the Q3/Q4 timeframe, and said the company is also engaged in discussions that “could lead to an alternate source for our second-gen VPD technology.” He declined to provide a timeline for reaching the $1.5 billion capacity level, saying it would be “unwise” to get overly specific given multiple scenarios beyond 2026.

In the industrial market, Davies said Vicor’s top 100 industrial OEMs in automated test and semiconductor manufacturing equipment “continue to benefit from the AI data center build-out with strong order placement,” and he highlighted Vicor’s “current multipliers” for ASIC and memory test applications as remaining “unchallenged” on key attributes. In aerospace and defense, Davies said geopolitical developments have been driving growth, citing increased spending as a percentage of GDP and replenishment of systems. When asked about meeting defense needs, Davies said Vicor “can meet the needs of the defense market with the capacity that we have,” while also noting the company does not break out defense or semiconductor test revenue as a percentage of total sales.

On licensing strategy, Vinciarelli reiterated confidence in the company’s “licensing practice,” calling it a high-growth, high-margin business and saying Vicor expects that “OEMs and hyperscalers will be Vicor licensees with only perhaps rare exceptions” in the not-too-distant future. He also noted that some licensing outcomes involve expense recognition tied to partners: Vicor has partnered with law firms that share in outcomes “subject to caps,” and the company records operating expenses related to those shares when licensing income is recorded.

About Vicor (NASDAQ:VICR) Vicor Corporation is a designer and manufacturer of modular power components and systems, serving a wide range of industries that demand high performance and efficiency. Headquartered in Andover, Massachusetts, the company develops power conversion solutions that help customers optimize energy delivery in applications from telecommunications and data centers to industrial and automotive systems.

The company’s product portfolio includes high-density DC-DC converters, AC-DC front-end modules, point-of-load regulators and complete power systems that combine multiple conversion stages in a single package.

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Vicor (VICR +2.51%) stock closed out this week's trading stretch with big gains. The tech company's share price ended Friday's session up 25.4% compared to its level at the end of the previous week's trading.

Tech stocks enjoyed a bullish backdrop over the last week, with the S&P 500 climbing 0.5% and the Nasdaq Composite rising 1.5%. With the market's appetite for tech stocks already rising, the stage was set for Vicor's better-than-expected Q1 results to power huge gains for the stock.

Image source: Getty Images.

Vicor crushed Wall Street's Q1 forecast Vicor recorded earnings per share of $0.44 on sales of $113 million in the first quarter. Earnings per share beat the average analyst estimate by $0.11, and sales came in $3.65 million higher than anticipated. The power-components specialist's revenue surged roughly 20% higher year over year, and the company reported an order backlog of $301 million at the end of the quarter -- up 75% year over year.

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What's next for Vicor? In addition to posting strong sales and earnings beats in the first quarter, Vicor returned to providing definitive forward guidance. The company said that it anticipates second-quarter revenue to come in at nearly $126 million. Meanwhile, sales for the full-year period are projected to come in at nearly $570 million. For reference, the business recorded sales of $452.7 million last year. Vicor's return to providing detailed forward guidance even amid geopolitical instability is a positive development for shareholders, and investors poured back into the stock this week.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

On April 30, 2026, Vicor Corp VICR shares rose 4.9% today, bringing the current price to $269.27. The stock has seen significant performance over the past year, with a remarkable increase of 574.8%, and it is currently trading within a 52-week range of $38.93 to $293.95.

GF Value™ verdict: The current price is $269.27 compared to the GF Value™ of $58.35, indicating a 361.5% overvaluation.GF Score™: 83/100, which is classified as strong, suggesting favorable long-term performance potential.Most notable signal: Insider activity shows that insiders sold $184.9 million in stock over the past three months, with no buying reported. Is VICR Overvalued or Undervalued? The current price of Vicor Corp VICR at $269.27 stands in stark contrast to the GF Value™ estimate of $58.35. This suggests that the stock is significantly overvalued by approximately 361.5%. Such a large discrepancy raises concerns about the sustainability of the current price, particularly given that the GF Valuation label categorizes the stock as significantly overvalued. The margin of safety appears to be quite narrow, and investors may face considerable risk if prices revert to align more closely with intrinsic value.

According to GuruFocus, GF Value™ is a proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The significantly overvalued status indicates that current trading levels may not be justified by underlying financial performance, making it essential for potential investors to exercise caution.

How Does VICR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 90.1x 77.4x Forward P/E 100.0x N/A The current P/E ratio of 90.1x is 16% above its 5-year median P/E of 77.4x, and the forward P/E stands at 100.0x. This indicates that the stock is trading above its historical valuation levels, which aligns with the GF Value™ verdict of being overvalued. Therefore, the P/E analysis confirms the initial assessment of Vicor Corp's stock as significantly overvalued, suggesting that the current price may not be sustainable in the long run.

What Does VICR's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 8/10 Profitability 8/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The GF Score™ of 83/100 indicates a strong overall performance potential for Vicor Corp, especially highlighted by its perfect Growth Rank of 10/10. The Financial Strength and Profitability ranks are also strong at 8/10. However, the Valuation Rank of 1/10 is a significant weakness, corroborating the concerns raised by the GF Value™ assessment. While the company exhibits strong growth potential, the valuation metrics suggest a need for caution due to the current overvaluation.

What Are Insiders Doing with VICR Stock? Recent insider activity for Vicor Corp has shown a notable trend of selling, with insiders divesting approximately $184.9 million in stock over the last three months, without any reported purchases. This pattern can often raise red flags regarding the confidence insiders have in the company's future performance. Typically, significant selling could signal that insiders believe the stock is overvalued or that they may need liquidity for personal reasons.

Overall, the absence of any buying activity from insiders further emphasizes the concerns surrounding the stock's current valuation and may suggest a lack of confidence in sustained price levels.

What This Means for Investors Based on the GF Value™ assessment, Vicor Corp VICR is currently overvalued. With a significant difference between the current trading price and the estimated fair value, potential investors should carefully consider the risks associated with entering the stock at this time.

For the complete analysis, visit the Vicor Corp VICR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is VICR's GF Score™?

The GF Score™ for Vicor Corp is 83/100, indicating a strong potential for long-term performance based on key aspects such as financial strength and growth.

Is VICR overvalued or undervalued?

Vicor Corp is currently overvalued, with a GF Value™ estimate of $58.35 compared to the current price of $269.27, suggesting a significant overvaluation.

What is VICR's P/E ratio?

The current P/E ratio for Vicor Corp is 90.1x, which is above its 5-year median P/E of 77.4x, confirming that the stock is trading at a higher valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Vicor (VICR) is experiencing unprecedented demand for its AI power converters, driven by lead customer Cerebras and upcoming hyperscaler engagements. Bookings surged to a record $237M in Q1 with a book-to-bill ratio above 2:1; capacity expansion of 350% to $3.5B is underway. Royalty income is expected to approach 50% of product revenue, with a second-source licensing agreement anticipated to accelerate margin expansion.

On May 18, 2026, Vicor Corp VICR shares fell 9.0% to a current price of $248.84, reflecting a significant downturn in price amidst a broader context of volatility; the stock has ranged from a 52-week low of $40.54 to a high of $316.82. The recent decline follows a notable one-week drop of 20.4%, although the stock has seen impressive gains year-to-date and over the past year, with increases of 127.2% and 474.2%, respectively.

GF Value™ verdict: Current price of $248.84 vs GF Value™ of $60.91, indicating a 308.5% overvaluation.GF Score™ of 81/100 suggests strong fundamentals and growth potential.Insider activity shows a significant sell-off, with insiders selling $206.6M of shares in the last three months. Is VICR Overvalued or Undervalued? The current valuation of Vicor Corp, as illustrated by the GF Value™, indicates a significant overvaluation. With a GF Value™ of $60.91, the current price of $248.84 represents a 308.5% premium over its intrinsic value. This stark discrepancy highlights a considerable margin of safety for potential investors, suggesting that Vicor's stock is trading at a level that may not be supported by its fundamentals. The GF Valuation label categorizes Vicor as "Significantly Overvalued," signaling risks for those considering an investment based solely on the current price levels.

In this context, the overvaluation could imply that the stock is exposed to potential price corrections, particularly if market sentiment shifts or if the company's performance does not meet lofty expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should approach this stock with caution, weighing the high current price against the underlying financial metrics and growth forecasts.

How Does VICR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 83.3x 77.3x Forward P/E 92.5x N/A The current P/E ratio of 83.3x is 8% above its 5-year median P/E of 77.3x, indicating that Vicor Corp's stock is trading at a higher valuation multiple than it has historically. This P/E analysis aligns with the GF Value™ verdict of being overvalued, further corroborating the notion that the stock may be priced beyond its intrinsic worth, suggesting caution for potential investors.

What Does VICR's GF Score™ Tell Us? Metric Rating GF Score™ 81/100 Financial Strength 8/10 Profitability 8/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The GF Score™ of 81/100 reflects Vicor Corp's strong financial health and growth potential, particularly underscored by its perfect Growth Rank of 10/10. However, the valuation rank of 1/10 starkly contrasts with its solid financial strength and profitability scores of 8/10, indicating that while the company is performing well in many areas, its current stock price does not reflect those strengths appropriately. This imbalance suggests that investors may need to reassess their expectations regarding future returns based on the present valuation.

What Are Insiders Doing with VICR Stock? Recent insider activity has shown a significant sell-off, with insiders selling $206.6 million in shares over the last three months, with no buying activity reported. This pattern of selling may raise concerns about the company's future prospects from those who are closest to its operations, potentially signaling a lack of confidence in the stock at current price levels. The absence of insider buying further emphasizes a cautious approach toward Vicor Corp's stock at this time.

What This Means for Investors Based on the analysis of GF Value™, Vicor Corp VICR is assessed as significantly overvalued. The current market price suggests that investors may face heightened risks if they enter at these levels, given the stark contrast between the stock's price and its intrinsic value. Careful consideration of these insights is advised for anyone looking at this stock.

For the complete analysis, visit the Vicor Corp VICR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is VICR's GF Score™?

Vicor Corp has a GF Score™ of 81/100, indicating strong fundamentals and growth potential that could lead to higher long-term returns.

Is VICR overvalued or undervalued?

VICR is considered overvalued according to the GF Value™ verdict, as its current price significantly exceeds its estimated intrinsic value.

What is VICR's P/E ratio?

VICR's P/E ratio is currently 83.3x, which is above its 5-year median P/E of 77.3x, confirming that the stock is trading at a higher valuation than its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

AI infrastructure stocks received a boost today after power components and systems company Vicor (VICR +2.51%) raised its second-quarter revenue guidance from $126 million to $142 million. The news was enough to send Vicor stock soaring, and it also sent Navitas Semiconductor (NVTS +7.56%) shares higher by as much as 15.6% at 11 a.m. today.

Why Vicor's results read across well for Navitas As outlined recently, Navitas is a company whose stock is highly sensitive to developments in AI data center infrastructure spending. The reason is that management has deliberately pivoted the company away from its traditional core markets of power chips for mobile phone charging and consumer products toward high-power applications. Indeed, Navitas is a partner of Nvidia in developing next-generation data center power chips.

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Therefore, when Vicor, whose advanced products focus on data center and hyperscaler segments according to SEC filings, raises its guidance to reflect stronger hyperscaler spending, it signals positive momentum for Navitas.

Where next for Navitas The company is loss-making and will be so until 2030, according to the Wall Street consensus from S&P Global Market Intelligence. Given that timeline toward profitability, the stock is highly likely to fluctuate heavily with every twist and turn in the debate over whether AI infrastructure spending is in its early or mid innings.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Aehr Test Systems (AEHR +7.07%) stock soared by 16.2% as of late afternoon today. The move comes as power systems company Vicor (VICR +2.51%) unexpectedly raised its second-quarter revenue guidance, just a month after reporting its first-quarter earnings. It's good news for the AI infrastructure sector and, in turn, Aehr Test Systems.

Vicor updates guidance The company makes "modular power components and power systems for converting electrical power," and its advanced products solutions are mainly sold to hyperscalers and data centers that use them to deliver power across data center infrastructure. Vicor raised guidance on the back of "rising product revenues and royalties from an additional licensee to its patented power system technology."

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If demand for data center-related power solutions is accelerating, then it will also be the case for power chip manufacturers, and ultimately for Aehr Test Systems. The wafer-level burn-in (WLBI) test equipment company is aggressively growing its sales to the AI infrastructure sector via test equipment for power semiconductors and AI processors.

Aehr's order book is exploding In fact, Aehr reported a $41 million order from its lead hyperscaler customer about a month ago. The order took Aehr's orders to over $92 million in the second half of its fiscal 2026, a figure significantly above its previous guidance for the high end of its $60 million to $80 million range. If the Vicor news reads across as further strengthening in AI data center-related spending, then don't be surprised if Aehr receives more orders in due course.

Image source: Getty Images.

Still, given that Aehr is a couple of years away from profitability, it will need to keep receiving orders to fully convince investors it's on the right track.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Vicor: Mid-Quarter Guidance Raise Confirms The IP Thesis (Rating Upgrade)