SummaryI reiterate my Strong Buy on Vicor after a record Q3, despite a 38% drawdown since my last article driven by sector-wide AI hardware selling.Q3 revenue rose 78.5% YoY to $197.1M, with product revenue up 47%, royalties up 207%, and gross margin reaching 68.3%.Vicor is supply-constrained rather than demand-constrained, with Fab 1 nearly full and two new fab sites targeting about 5x capacity from Q2 2027.Management expects to fund the expansion entirely from cash, in contrast with peers financing AI buildouts through debt or large equity raises.My FY27 scenarios range from -36% to +103%, with a base case of +44%. Thomas Barwick/DigitalVision via Getty Images
Investment Thesis Despite the volatility in the share price and negative returns over the last few months, I reiterate my Strong Buy rating on Vicor (VICR) based on fundamental improvements across many
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Vicor is a key beneficiary of the AI data center boom, supplying advanced power modules essential for hyperscaler infrastructure. VICR has transitioned from lumpy industrial/defense sales to rapid growth, with 2026 revenue expected at $633M, up over 55% year-over-year. Gross margins have surged to nearly 70%, with high-margin royalties growing as a percentage of 2026 revenue, supporting operating leverage.
Key Takeaways Vicor shares gained 4.5% as Q3 earnings jumped 111.1% and revenues surged 78.5%.
VICR's royalty revenues soared 206.6% to $66.6 million, boosting margins.
Vicor expects Q4 product revenues to grow 10% sequentially, driven by Advanced Products.
Vicor Corporation (VICR - Free Report) shares have gained 4.5% since it reported third-quarter 2026 results on Oct. 20. The uptick can be attributed to strong AI-driven demand and rising recurring royalty revenues, which lifted sales, margins and profitability.
The company reported third-quarter 2026 earnings of $1.33 per share, missing the Zacks Consensus Estimate by 4.32%. The figure increased 111.1% year over year.
Revenues surged 78.5% year over year to $197.11 million and surpassed the consensus estimate by 5.4%. Strong Advanced Products sales and higher royalty income supported growth. The company’s order backlog increased 166% year over year to $406 million, reflecting robust demand.
VICR's Advanced Products Revenues AccelerateAdvanced Products revenues, including royalties, increased 47.5% sequentially to $138.9 million. The business accounted for 70.4% of total revenues, up from 65.7% in the preceding quarter.
Brick Products revenues increased 18.4% sequentially to $58.3 million and represented 29.6% of total revenues.
Shipments to stocking distributors increased 24.8% sequentially and 16.2% year over year. Exports accounted for approximately 36.1% of revenues, down from 46% in the second quarter of 2026.
Vicor Benefits From Expanding Royalty IncomeProduct revenues totaled $130.5 million, up 47.1% year over year. Royalty revenues surged 206.6% year over year to $66.6 million from $21.7 million. Sequentially, royalty revenues increased 119.1%, supported by licensing agreements.
The company granted its first vertical power delivery (VPD) license to a leading artificial intelligence (AI) original equipment manufacturer at Stage 2-unit royalty rates. Management noted that part of the quarterly royalty contribution reflected initial payments, while the underlying licensing arrangements provide recurring income.
Vicor also received inquiries from hyperscalers regarding broader licensing agreements. Management expects royalty income to grow as additional customers adopt its intellectual property, although the timing of payments and new agreements could create quarterly fluctuations.
VICR's Backlog Reflects Strong Market DemandThe book-to-bill ratio remained above 1, while backlog increased 7% sequentially to $380 million. Management highlighted approximately $100 million in bookings during the first two weeks of the fourth quarter, including a substantial order for second-generation VPD modules.
Demand remained strong across AI computing, automatic test equipment (ATE), industrial, aerospace and defense markets. The company's ATE business, which serves semiconductor and memory testing applications, now generates more than $100 million in annual revenues.
Management highlighted growing customer interest in second-generation VPD technology following demonstrations at Open Compute. The technology aims to address increasing power density and efficiency requirements for advanced AI processors.
Vicor’s Margins Expand Despite Rising ExpensesGross profit increased sequentially to $134.7 million from $83.1 million. Gross margin expanded 1,030 basis points to 68.3%, benefiting from higher royalty revenues, improved product mix, manufacturing efficiencies and increased volumes.
Operating expenses increased 29.6% sequentially to $62.5 million. Legal expenses, a substantial portion of which are linked to royalty revenues, increased approximately $11.1 million to $16.1 million. Management expects legal expenses to average approximately 20% of royalty revenues in the near term.
Operating income surged 245.1% year over year to $72.1 million from $20.9 million in the year-ago quarter.
VICR Strengthens Cash Position and Expands CapacityAs of Sept. 30, 2026, cash and cash equivalents totaled $513.1 million compared with $453.6 million in the previous quarter.
Operating activities generated $69.7 million in cash compared with $34 million in the second quarter.
Vicor acquired two additional manufacturing sites within 30 miles of its existing Andover facility. The planned Fab-2 and Fab-3 facilities could increase manufacturing capacity nearly fivefold relative to Fab-1.
Management expects initial equipment deployment at Fab-2 in the second quarter of 2027. The expansion will initially target capacity-constrained manufacturing processes. The company expects to fund its expansion plans without raising additional capital.
Vicor Expects Further Product Revenue GrowthVicor expects fourth-quarter 2026 product revenues to increase approximately 10% sequentially. The outlook assumes another double-digit sequential increase in Advanced Products hardware revenues.
Management also expects at least $43 million in fourth-quarter royalty revenues, assuming no additional licensing agreements. Existing arrangements could generate incremental royalties beyond this baseline.
The company anticipates further margin expansion as revenues increase and manufacturing utilization improves. However, near-term capacity constraints at Fab-1 remain a consideration as Vicor works to expand production capabilities and meet growing customer demand.
Zacks Rank & Upcoming Earnings to WatchVicor currently sports a Zacks Rank #1 (Strong Buy).
Alkami Technology (ALKT - Free Report) , ASE Technology (ASX - Free Report) , and Entegris (ENTG - Free Report) are some other top-ranked stocks in the broader Zacks Computer and Technology sector. While ASE Technology sports a Zacks Rank #1, Alkami Technology and Entegris carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology, ASE Technology and Entegris are expected to report their quarterly results on Oct. 28, Oct. 29 and Oct. 29, respectively. While Shares of ASE Technology and Entegris have surged 163.5% and 75.3%, respectively, Alkami Technology shares have plunged 34.5% in the year-to-date period.
Assenagon Asset Management S.A. bought a new position in Vicor Corporation (NASDAQ:VICR – Free Report) during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 9,662 shares of the electronics maker’s stock, valued at approximately $2,792,000.
A number of other hedge funds have also added to or reduced their stakes in the stock. Andar Capital Management HK Ltd purchased a new stake in Vicor in the second quarter worth about $101,100,000. BlackRock Inc. purchased a new position in Vicor during the 2nd quarter valued at about $934,612,000. The Manufacturers Life Insurance Company boosted its position in Vicor by 39.6% during the 1st quarter. The Manufacturers Life Insurance Company now owns 603,364 shares of the electronics maker’s stock valued at $97,142,000 after acquiring an additional 171,175 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Vicor by 43.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 536,274 shares of the electronics maker’s stock valued at $86,340,000 after acquiring an additional 162,186 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Vicor in the 2nd quarter valued at $53,161,000. 47.45% of the stock is currently owned by institutional investors.
Analyst Ratings Changes VICR has been the subject of several recent research reports. Needham & Company LLC reissued a “buy” rating and issued a $350.00 price target on shares of Vicor in a research report on Tuesday. Wall Street Zen upgraded Vicor from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Weiss Ratings downgraded Vicor from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. Zacks Research raised Vicor from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 1st. Finally, Roth Capital set a $360.00 target price on Vicor in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $386.67.
Get Our Latest Stock Report on VICR Vicor Price Performance Shares of Vicor stock opened at $213.42 on Thursday. The stock has a market cap of $9.84 billion, a PE ratio of 55.87 and a beta of 2.37. Vicor Corporation has a 1 year low of $79.00 and a 1 year high of $382.65. The firm has a fifty day moving average price of $228.51 and a 200 day moving average price of $250.98.
Vicor (NASDAQ:VICR – Get Free Report) last announced its quarterly earnings results on Tuesday, October 20th. The electronics maker reported $1.33 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.01. Vicor had a return on equity of 22.49% and a net margin of 32.15%. The company had revenue of $197.11 million during the quarter, compared to analysts’ expectations of $187.03 million. During the same period last year, the business earned $0.63 earnings per share. Vicor’s quarterly revenue was up 78.5% on a year-over-year basis. As a group, equities analysts expect that Vicor Corporation will post 4.07 EPS for the current year.
Key Headlines Impacting Vicor Here are the key news stories impacting Vicor this week:
Positive Sentiment: Third-quarter revenue rose 78.5% year over year to $197.1 million, while diluted EPS increased to $1.33 from $0.63. Revenue exceeded several analyst estimates, although the EPS result was slightly below some higher consensus figures. Vicor third-quarter results Positive Sentiment: AI demand is driving growth: royalty revenue reached $66.6 million, more than triple the year-earlier level, and Vicor granted its first VPD license to an AI OEM. Management expects at least $43 million of royalty revenue in the fourth quarter. Vicor fourth-quarter outlook Positive Sentiment: Management projects approximately 10% fourth-quarter product-revenue growth and highlighted strong demand for its VPD power technology from AI customers and hyperscalers. Backlog climbed 166% year over year to $406 million. Vicor earnings call highlights Positive Sentiment: Vicor is expanding manufacturing capacity by acquiring two nearby sites, targeting nearly five times the capacity of its existing Fab-1 footprint. Needham reaffirmed its Buy rating and assigned a $350 price target. Needham rating Neutral Sentiment: Gross margin expanded to 68.3%, and operating cash flow reached $69.7 million; however, operating expenses rose substantially, partly because of intellectual-property enforcement costs. Vicor financial results summary Negative Sentiment: Investors continue to face patent-litigation and ITC-investigation risks, while reported insider activity showed substantial selling and no purchases over the past six months. These factors could temper enthusiasm after the stock’s strong advance. Insiders Place Their Bets In other news, CEO Patrizio Vinciarelli sold 20,000 shares of Vicor stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $316.13, for a total transaction of $6,322,600.00. Following the completion of the transaction, the chief executive officer directly owned 8,307,390 shares of the company’s stock, valued at $2,626,215,200.70. The trade was a 0.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Philip D. Davies sold 3,073 shares of the business’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $177.70, for a total transaction of $546,072.10. Following the completion of the transaction, the vice president owned 1,920 shares of the company’s stock, valued at approximately $341,184. This represents a 61.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 27,053 shares of company stock worth $7,745,984. Corporate insiders own 28.30% of the company’s stock.
Vicor Profile (Free Report)
Vicor Corporation (NASDAQ: VICR) designs, develops, manufactures and markets modular power components and systems. The company’s products convert, regulate and distribute electrical power for electronic equipment, with an emphasis on high-performance, compact and efficient power solutions.
Its portfolio includes AC-to-DC and DC-to-DC converters, regulators, power modules, power distribution components and complete power systems. Vicor’s technologies include its Factorized Power Architecture and high-density ChiP packaging, which are designed to help engineers manage power more efficiently while reducing the size and complexity of electronic systems.
Vicor serves customers in industries such as data centers and computing, telecommunications, automotive, aerospace and defense, industrial equipment, and consumer electronics.
Further Reading Five stocks we like better than Vicor GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Intercepting Growth: Karman Secures $218M Lockheed Martin Deal Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chip Stocks Have Pulled Back—Here’s How 3 Semiconductor ETFs Stack Up for Investors 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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Vicor targets AI-driven growth with expanded manufacturing capacity, strong VPD demand and rising licensing revenues, while outlining its fourth-quarter outlook.
Outpacing the 0.3% rise in the S&P 500 (as of this writing) during today's market session, Vicor (VICR +6.85%) stock is climbing on the company's report of surprisingly strong third-quarter 2026 financial results released this morning before the opening bell.
As of 2:58 p.m. ET, shares of the modular power components manufacturer are up 7.4%.
Image source: Getty Images.
Revenue rises 78.5% year-over-year to $197.1 millionBeating analysts' expectations of $187 million, Vicor reported Q3 2026 revenue of $197.1 million, a quarter-over-quarter increase of 37.5% and a 78.5% increase over the same period last year.
VICR Vicor$203.75+$13.07 (+6.85%)
NASDAQ · As of 3:42 PM ET 10/20/26
At the bottom of the income statement, Vicor also provided a surprise, reporting net income of $63.3 million, or $1.33 per diluted share, compared to $28.3 million, or $0.63 per diluted share, in Q3 2025. Analysts had anticipated Vicor posting diluted earnings per share of $1.24 for Q3 2026.
It wasn't merely the insight into the company's recent financial performance that investors celebrated, however. Vicor reported a backlog totaling $406 million as of the end of September 2026 -- a 166% increase from the $153 million it had at the end of September 2025.
Is it too late to load up on Vicor stock?Because it licenses its power system technologies to hyper-scalers, Vicor has emerged as yet another artificial intelligence (AI) stock investment opportunity -- specifically one that provides data center exposure. And while the hype around AI investments has waned recently, Vicor stock is still up about 87% since the start of the year. And with the impressive performance, Vicor's stock has now soared to a rich valuation. Currently, shares are trading at 75.8 times operating cash flow, a premium to its five-year average cash flow multiple of 36.6. At this point, investors should wait for the stock to experience a pullback before they choose to pull the trigger on a Vicor investment.
Scott Levine 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.
This Tiny AI Supplier Could Be More Important Than the ChipmakersVicor NASDAQ: VICR reported sharply higher third-quarter revenue and profitability, supported by growth in advanced products and royalty income, while management outlined further capacity expansion plans to address demand tied to artificial-intelligence infrastructure and other markets.
For the quarter ended Sept. 30, 2026, product and royalty revenue totaled $197.1 million, up 37.5% sequentially and 78.5% from a year earlier, Chief Financial Officer Jim Schmidt said. Advanced products revenue, including royalties, rose 47.5% from the prior quarter to $138.9 million, while Brick Products revenue increased 18.4% to $58.3 million.
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The S&P 600’s newest, familiar members: Are they winners?Royalty revenue climbed 119.1% sequentially to $66.6 million. Schmidt said a portion of the increase was related to initial royalty payments from a new licensee and was non-recurring, though executives emphasized that the company now views its licensing activity as a recurring revenue stream.
Margins and earnings improve
Vicor's consolidated gross margin reached 68.3% in the third quarter, improving 1,030 basis points sequentially and 1,080 basis points year over year. Schmidt attributed the expansion to higher royalty revenue as well as improved product margins driven by volume, manufacturing efficiency and product mix.
Generac Powers Up as Summer Temperatures RiseOperating expenses increased 29.6% sequentially to $62.5 million. Legal expense rose by approximately $11.1 million from the second quarter to $16.1 million, substantially reflecting costs contingent on royalty revenue. Schmidt said Vicor expects legal expenses to average about 20% of royalty revenue in the near term.
Net income totaled $63.3 million, or $1.33 per diluted share, based on 47.6 million diluted shares. The company recorded a tax provision of approximately $15.4 million, representing an effective tax rate of 19.6%.
Cash and cash equivalents ended the quarter at $513.1 million, up $59.6 million sequentially. Operating cash flow was $69.7 million, while capital expenditures were $16.1 million. Inventory increased 6.2% from the prior quarter to $110.9 million.
Fourth-quarter outlook and bookings
Vicor said its third-quarter book-to-bill ratio was above one and one-year backlog rose 7% sequentially to $406 million. Management expects product revenue to increase 10% in the fourth quarter, aided by incremental capacity, with another double-digit sequential increase expected in the advanced-products portfolio.
Schmidt said the company anticipates at least $43 million in fourth-quarter royalty revenue assuming no new license agreements are completed during the quarter. He also noted that existing licensing arrangements could generate royalty revenue above that baseline.
“It’s better for, I think, the audience and the analysts to think about the royalty stream as recurring now and not a non-recurring activity,” Schmidt said during the question-and-answer session.
Chief Executive Officer Patrizio Vinciarelli said royalty revenue could remain uneven as Vicor pursues additional agreements with hyperscalers and original equipment manufacturers, but he expects the licensing business to grow. “With some lumpiness, this is going to be a significant growth business,” he said.
Phil Davies, Vicor's corporate vice president of global sales and marketing, said demand across the company’s business segments and licensing operations remained strong. He said Vicor recorded $100 million in bookings during the first two weeks of the fourth quarter, including a large order for second-generation VPD modules from its lead customer.
Capacity expansion plans
Vicor has acquired sites for ChiP Fab-2 and ChiP Fab-3 as it prepares for a larger manufacturing footprint. Vinciarelli said the company expects initial equipment deployment at Fab-2 in the second quarter of 2027, beginning with production lines tied to process steps that are currently capacity constrained at Fab-1.
The rollout at Fab-2 will be incremental rather than a full replication of Fab-1 from the outset, according to Vinciarelli. He said the company expects to be nearing full utilization of Fab-1 next year, though constraints are tied to specific manufacturing platforms and process steps.
Fab-3, meanwhile, is a longer-term option. Vicor has purchased the land but does not currently plan to begin construction. Vinciarelli said the new sites could support more than a fivefold expansion in capacity relative to Fab-1, describing that estimate as conservative because the locations provide more room for expansion.
Management did not provide capital-spending figures for Fab-2 or Fab-3, but Vinciarelli said Vicor expects to fund Fab-2, and eventually Fab-3, without raising external capital.
AI power-delivery opportunity and licensing
Davies said meetings with hyperscalers and OEMs at the Open Compute event reinforced management’s view that conventional voltage regulators and intermediate-voltage regulators face limitations in supplying power to next-generation AI systems. Vicor is promoting its second-generation VPD technology and ALL-FPA architecture, which the company said offers current-density, current-gain and transient-performance advantages.
The company has established demonstration systems for its second-generation VPD and ALL-FPA technologies at its Silicon Valley applications laboratory for selected customer engagements.
On licensing, Davies said Vicor granted its first VPD license to a leading AI OEM based on stage-two royalty rates. The company also said it has asked the U.S. International Trade Commission for a limited exclusion order barring imports of unlicensed computing systems that infringe Vicor’s VPD patents.
Vinciarelli explained that Vicor’s royalty rates increase as patent enforcement advances through defined stages. He said stage three begins when the ITC institutes an investigation, with rates escalating as the process advances. The company said its licensing structure is intended to encourage earlier licensing agreements and maintain consistency among licensees.
Beyond AI, Davies said Vicor’s automated test equipment customers now represent more than $100 million in annual revenue and “show no signs of slowing down.” He also cited new product introductions and market expansion in industrial, aerospace and defense applications.
About Vicor (NASDAQ:VICR)Vicor Corporation NASDAQ: VICR designs, develops, manufactures and markets modular power components and systems. The company's products convert, regulate and distribute electrical power for electronic equipment, with an emphasis on high-performance, compact and efficient power solutions.
Its portfolio includes AC-to-DC and DC-to-DC converters, regulators, power modules, power distribution components and complete power systems. Vicor's technologies include its Factorized Power Architecture and high-density ChiP packaging, which are designed to help engineers manage power more efficiently while reducing the size and complexity of electronic systems.
Vicor serves customers in industries such as data centers and computing, telecommunications, automotive, aerospace and defense, industrial equipment, and consumer electronics.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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On its third-quarter of 2026 earnings call, held on Oct. 20, 2026, Vicor (VICR +6.24%) announced product and royalty revenue of $197 million. The company is expanding manufacturing capacity to meet growing demand for artificial intelligence. Licensing income is establishing a stable foundation for long-term growth. Three things management said stand out.
1. Licensing Practices Are Turning Patent Holdings Into Recurring RevenueVicor's intellectual property, or patents covering proprietary power technology, generated $66.6 million in third-quarter royalty revenue. Management expects this revenue stream to stabilize as more customers sign agreements.
With some lumpiness, this is going to be a significant growth business that we are now estimating to reach levels next year and the year after that beyond levels that I forecasted a year ago.
-- Patrizio Vinciarelli, Chief Executive Officer2. Adding Two Manufacturing Sites Provides Fivefold Output PotentialVicor acquired two new sites for chip fab 2 and chip fab 3, its semiconductor fabrication facilities, to eliminate physical bottlenecks at its main plant. Initial equipment deployment will begin in the second quarter of 2027 to address specific production constraints.
The 5x, is a conservative number. It could be more than that because, again, unlike Fab 1, we are not going to be limited by elbow room within either 1 of these sites.
-- Patrizio Vinciarelli, Chief Executive Officer3. Second-Generation Vertical Power Delivery Outperforms Competing ArchitecturesVicor's second-generation vertical power delivery, or VPD, supplies electrical power directly under computer chips to reduce power loss. Existing competing voltage regulators, or VRs, struggle to meet the extreme current demands of artificial intelligence processors.
Meetings held with major hyperscalers and OEMs at last week's open compute confirmed that first generation VPD systems using VRs which infringe VICOR patents, are struggling to keep up with the requirements of next generation AI systems.
-- Philip D. Davies, Corporate Vice President, Global Sales and MarketingLooking AheadDemand for high-density power modules, which convert voltage for high-performance computing, is surging across artificial intelligence workloads, driving rapid growth in bookings.
Demand across our main business segments and in our IP licensing practice is strong. With $100 million in bookings in the first 2 weeks of Q4.
-- Philip D. Davies, Corporate Vice President, Global Sales andVicor holds proprietary packaging technology and intellectual property protection that solidify its competitive moat. Management is prioritizing plant capacity expansion and disciplined execution.
As production scales across new facilities, operating leverage should drive higher profitability.
We are going to have the economies of scale. We believe we are on the right track, and that is the industry is foolishly going down a dead end road.
-- Patrizio Vinciarelli, Chief Executive OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Vicor (VICR - Free Report) came out with quarterly earnings of $1.33 per share, missing the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -4.32%. A quarter ago, it was expected that this modular power components company would post earnings of $0.62 per share when it actually produced earnings of $1.04, delivering a surprise of +67.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Vicor, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $197.11 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 5.30%. This compares to year-ago revenues of $110.42 million. The company has topped consensus revenue estimates two times 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 74% since the beginning of the year versus the S&P 500's gain of 12.4%.
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 $1.21 on $195.1 million in revenues for the coming quarter and $4.08 on $638.65 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 top 27% 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.
LGL Group, Inc. (The) (LGL - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026.
This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -121.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
LGL Group, Inc. (The)'s revenues are expected to be $1.3 million, up 17.1% from the year-ago quarter.
ANDOVER, Mass., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 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 third quarter ended September 30, 2026 totaled $197.1 million, a 37.5% sequential increase from $143.4 million in the second quarter of 2026, and increased 78.5% from $110.4 million for the corresponding period a year ago.
Gross margin increased sequentially to $134.7 million for the third quarter of 2026, compared to $83.1 million for the second quarter of 2026, and increased from $63.5 million for the corresponding period a year ago. Gross margin, as a percentage of revenue, increased to 68.3% for the third quarter of 2026, compared to 58.0% for the second quarter of 2026, and increased from 57.5% for the corresponding period a year ago. Operating expenses, including contingency fees to law firms enforcing Vicor IP, increased sequentially to $62.5 million for the third quarter of 2026, compared to $48.2 million for the second quarter of 2026, and increased from $42.6 million for the corresponding period a year ago.
Net income for the third quarter was $63.3 million, or $1.33 per diluted share, compared to net income of $49.8 million, or $1.04 per diluted share, for the second quarter of 2026 and net income of $28.3 million or $0.63 per diluted share, for the corresponding period a year ago.
Cash flow from operations totaled $69.7 million for the third quarter, compared to cash flow from operations of $34.0 million in the second quarter of 2026, and cash flow from operations of $38.5 million for the corresponding period a year ago. Capital expenditures for the third quarter totaled $16.1 million, compared to $11.2 million for the second quarter of 2026 and $4.0 million for the corresponding period a year ago. Cash and cash equivalents as of September 30, 2026 increased 13.1% sequentially to approximately $513.1 million compared to approximately $453.6 million as of June 30, 2026.
Backlog for the third quarter ended September 30, 2026 totaled $406 million, a 7% sequential increase from $380 million at the end of the second quarter of 2026, and increased 166% from $153 million for the corresponding period a year ago.
Commenting on recent developments, CEO Dr. Patrizio Vinciarelli stated: “With the purchase of two additional sites within 30 miles of ChiP Fab-1 in Andover, we will be able to provide a nearly 5X increase in capacity from 3 Fabs, relative to Fab-1. Capacity expansion is necessary in view of demand and industry trends.
Open Compute confirmed the challenges of VRs and IVRs. In addition to infringing patents to 1st GEN VPD, VRs and IVRs face electrical, mechanical and thermal barriers to escalating AI processor requirements. In private presentations and lab sessions with OEMs and Hyperscalers, we demonstrated the distinct advantages of Vicor’s 2nd GEN VPD. Participants paid attention, providing positive feedback and interest in engaging. The stage is set for broader adoption of high performance ALL-FPA current multiplier modules which enable 2nd GEN VPD.
On the licensing front, we granted our first VPD license to an AI OEM at Stage-2 unit royalty rates. Unlicensed OEMs and Hyperscalers may not have realized the implications of importing, or planning to import, computing systems infringing Vicor patents to VPD. The ITC decision to institute an investigation into VPD infringement is catching their attention, prompting inquiries about licenses at royalty rates that strongly favor early adopters."
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, October 20, 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 October 20, 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 designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
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 NINE MONTHS ENDED (Unaudited) (Unaudited) SEPT 30, SEPT 30, SEPT 30, SEPT 30, 2026
2025
2026
2025
Product revenue$ 130,501 $ 88,698 $ 341,431 $ 257,597Royalty revenue 66,613 21,725 112,004 42,840 Total net revenues 197,114 110,423 453,435 300,437Patent litigation settlement - - - 45,000 Total net revenues and patent litigation settlement 197,114 110,423 453,435 345,437Cost of product revenues 62,434 46,910 173,269 145,431 Gross margin 134,680 63,513 280,166 200,006 Operating expenses: Selling, general and administrative 38,563 22,747 89,356 75,836 Research and development 23,969 19,859 66,900 58,027 Total operating expenses 62,532 42,606 156,256 133,863 Income from operations 72,148 20,907 123,910 66,143 Other income (expense), net 6,585 2,407 14,149 9,198 Income before income taxes 78,733 23,314 138,059 75,341 Less: Provision (benefit) for income taxes 15,401 (4,988) 4,265 3,278 Consolidated net income 63,332 28,302 133,794 72,063 Less: Net income attributable to noncontrolling interest 11 10 37 40 Net income attributable to Vicor Corporation$63,321 $28,292 $133,757 $72,023 Net income per share attributable to Vicor Corporation: Basic$1.37 $0.63 $2.92 $1.60 Diluted$1.33 $0.63 $2.81 $1.59 Shares outstanding: Basic 46,129 44,734 45,845 44,986 Diluted 47,609 44,930 47,524 45,167 VICOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Thousands) SEPT 30, DEC 31, 2026
2025
(Unaudited) (Unaudited) Assets Current assets: Cash and cash equivalents$ 513,137 $ 402,805 Accounts receivable, net 122,488 60,716 Inventories 110,922 91,340 Other current assets 13,594 32,502 Total current assets 760,141 587,363 Long-term deferred tax assets 23,439 27,463 Long-term investment, net - 2,462 Property, plant and equipment, net 177,987 147,690 Other assets 20,053 20,853 Total assets$ 981,620 $ 785,831 Liabilities and Equity Current liabilities: Accounts payable$ 24,334 $ 12,290 Accrued compensation and benefits 14,047 12,031 Accrued expenses 22,223 3,691 Accrued litigation - 28,275 Sales allowances 3,512 3,136 Short-term lease liabilities 1,733 1,568 Income taxes payable 208 904 Short-term deferred revenue and customer prepayments 418 3,426 Total current liabilities 66,475 65,321 Long-term income taxes payable 3,143 3,086 Long-term lease liabilities 5,427 5,608 Total liabilities 75,045 74,015 Equity: Vicor Corporation stockholders' equity: Capital stock 518,247 462,805 Retained earnings 555,116 421,359 Accumulated other comprehensive loss (1,174) (1,672) Treasury stock (165,909) (170,935) Total Vicor Corporation stockholders' equity 906,280 711,557 Noncontrolling interest 295 259 Total equity 906,575 711,816 Total liabilities and equity$ 981,620 $ 785,831
On October 16, 2026, Vicor Corp VICR shares fell 12.9% to a current price of $191.50. The stock has experienced significant volatility, trading between a 52-week high of $382.65 and a low of $57.00 over the past year.
GF Value™ verdict: Shares are currently priced at $191.50, while GF Value™ estimates fair value at $72.20, indicating a 165.2% overvaluation.GF Score™: 81/100, suggesting a strong overall performance, but with notable weaknesses in valuation.Insider activity: Insiders sold $424.1M worth of stock over the past 12 months, with no buying activity reported.Is VICR Overvalued or Undervalued?The current price of Vicor Corp significantly exceeds the estimated fair value provided by GF Value™. With a GF Value™ of $72.20, the stock appears to be overvalued by 165.2%. This suggests a substantial margin of safety for potential investors, indicating that the stock might be priced well beyond its intrinsic value based on historical trading multiples, past business growth, and future performance expectations. The GF Valuation label categorizes the stock as significantly overvalued, which poses a risk for investors considering entry points at current levels.
Given the high GF Value™ estimate compared to the current share price, investors may want to exercise caution. This overvaluation could lead to price corrections, especially in light of the recent insider selling activity, which suggests a lack of confidence from those within the company.
How Does VICR's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)61.5x74.0xForward P/E31.3xN/ACurrently, Vicor Corp’s P/E ratio of 61.5x is below its 5-year median of 74.0x, indicating that the stock trades at a lower valuation than it has historically. However, the forward P/E of 31.3x suggests a more favorable outlook compared to the trailing twelve months. This P/E analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that despite a lower current P/E compared to its historical average, the stock is still priced too high in relation to its intrinsic value.
What Does VICR's GF Score™ Tell Us?GF Score™ measures a company's overall financial health and performance across various dimensions, including financial strength, profitability, growth, valuation, and momentum. Vicor Corp has a GF Score™ of 81/100, reflecting a strong performance overall. Its strongest sub-rank is in growth, rated 9/10, indicating robust growth potential. Conversely, the valuation rank is particularly weak at 1/10, highlighting significant concerns regarding the stock's current pricing versus its fundamentals.
MetricRatingGF Score™81Financial Strength8/10Profitability8/10Growth9/10Valuation1/10Momentum9/10The overall scores suggest that while Vicor Corp exhibits strong growth and solid financial strength, it faces considerable challenges in terms of valuation. The stark contrast between the strong growth potential and the weak valuation rank raises red flags regarding the sustainability of its current price levels.
What Are Gurus and Insiders Doing with VICR?Currently, seven gurus hold positions in Vicor Corp, with two adding to their stakes and six trimming their positions in recent quarters. This indicates a mixed sentiment among professional investors regarding the stock’s future potential. Additionally, insider activity has shown a significant trend of selling, with insiders offloading $424.1M worth of shares over the past year without any purchases. This level of selling activity may reflect concerns about the company’s current valuation and future performance, suggesting that insiders may not feel confident in the stock's upside potential at current levels.
What This Means for InvestorsIn summary, Vicor Corp is currently classified as overvalued based on the GF Value™ assessment, suggesting that its market price significantly exceeds its intrinsic value. The combination of high insider selling and a low valuation rank raises concerns about the stock's future trajectory. Investors should carefully consider these factors and conduct thorough research before making any decisions related to Vicor Corp.
For a more detailed analysis, visit the Vicor Corp VICR stock page for the latest insights and metrics.
Frequently Asked QuestionsWhat is VICR's GF Score™?
VICR has a GF Score™ of 81/100, indicating strong overall performance with specific strengths in growth and financial strength.
Is VICR overvalued or undervalued?
VICR is currently overvalued according to the GF Value™ verdict, which suggests that the stock price is significantly higher than its estimated fair value.
What is VICR's P/E ratio?
VICR's P/E ratio is 61.5x, which is below its 5-year median of 74.0x, further supporting the view that the stock is overvalued despite a lower current P/E compared to 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].
VICR's raised Q3 revenue outlook, surging AI demand, growing royalties, and robust backlog position the company for strong earnings and sustained growth.
Vicor (VICR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 20, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis modular power components company is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of +120.6%.
Revenues are expected to be $187.2 million, up 69.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.64% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Vicor?For Vicor, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination makes it difficult to conclusively predict that Vicor will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Vicor would post earnings of $0.62 per share when it actually produced earnings of $1.04, delivering a surprise of +67.74%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Vicor doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Vicor Corporation (NASDAQ:VICR – Get Free Report)’s stock price gapped up before the market opened on Monday. The stock had previously closed at $266.07, but opened at $274.45. Vicor shares last traded at $256.5220, with a volume of 125,511 shares traded.
Analysts Set New Price Targets
A number of research firms have recently commented on VICR. Roth Capital restated a “buy” rating and issued a $375.00 price objective on shares of Vicor in a report on Tuesday, September 22nd. Craig Hallum boosted their target price on Vicor to $450.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Wall Street Zen upgraded Vicor from a “hold” rating to a “buy” rating in a report on Saturday. Zacks Research raised shares of Vicor from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 1st. Finally, Needham & Company LLC raised their price target on shares of Vicor from $320.00 to $350.00 and gave the company a “buy” rating in a report on Thursday, October 1st. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $391.67.
Check Out Our Latest Stock Analysis on VICR
Vicor Trading Down 3.0%
The firm has a market cap of $11.90 billion, a PE ratio of 82.73 and a beta of 2.37. The stock’s 50 day moving average price is $227.57 and its 200 day moving average price is $247.47.
Vicor (NASDAQ:VICR – Get Free Report) last posted its earnings results on Tuesday, July 21st. The electronics maker reported $1.04 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.39. Vicor had a net margin of 30.65% and a return on equity of 19.83%. The business had revenue of $143.35 million for the quarter, compared to analyst estimates of $138.37 million. During the same quarter in the previous year, the business posted $0.91 EPS. The business’s quarterly revenue was up 49.3% on a year-over-year basis. Analysts forecast that Vicor Corporation will post 4.07 earnings per share for the current year.
Insider Buying and Selling at Vicor
In other news, VP Philip D. Davies sold 3,073 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $177.70, for a total value of $546,072.10. Following the completion of the sale, the vice president owned 1,920 shares of the company’s stock, valued at $341,184. This represents a 61.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Zmira Lavie sold 908 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $250.00, for a total value of $227,000.00. Following the completion of the sale, the director owned 908 shares of the company’s stock, valued at approximately $227,000. This trade represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 27,053 shares of company stock valued at $7,745,984 over the last three months. 28.30% of the stock is owned by company insiders.
Institutional Investors Weigh In On Vicor
Several hedge funds have recently modified their holdings of VICR. GoalVest Advisory LLC raised its holdings in Vicor by 23.5% in the second quarter. GoalVest Advisory LLC now owns 321 shares of the electronics maker’s stock valued at $122,000 after acquiring an additional 61 shares in the last quarter. Carolina Wealth Advisors LLC boosted its stake in Vicor by 70.9% during the 2nd quarter. Carolina Wealth Advisors LLC now owns 147 shares of the electronics maker’s stock valued at $56,000 after acquiring an additional 61 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its holdings in Vicor by 1.2% during the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,692 shares of the electronics maker’s stock worth $916,000 after acquiring an additional 68 shares in the last quarter. First PREMIER Bank grew its holdings in Vicor by 20.0% during the 2nd quarter. First PREMIER Bank now owns 600 shares of the electronics maker’s stock worth $228,000 after acquiring an additional 100 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in Vicor by 28.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 465 shares of the electronics maker’s stock worth $75,000 after acquiring an additional 103 shares in the last quarter. 47.45% of the stock is currently owned by hedge funds and other institutional investors.
Vicor Company Profile
(Get Free Report)
Vicor Corporation (NASDAQ:VICR) designs, develops, manufactures and markets modular power-conversion products and systems. Its technologies are used to convert, regulate and distribute electrical power in electronic equipment, with an emphasis on compact, efficient and scalable power-delivery architectures.
The company’s product portfolio includes AC-to-DC and DC-to-DC converters, power modules, power systems and related components. Vicor’s Factorized Power Architecture and associated products are designed to support power delivery from the source to processors, memory, communications equipment and other demanding loads.
Founded in 1981 and headquartered in Andover, Massachusetts, Vicor serves customers and markets worldwide.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VICR either through stock ownership, options, or other derivatives. 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.
Shares of Vicor (VICR - Free Report) have gained 53.8% over the past four weeks to close the last trading session at $282.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $375.6 indicates a potential upside of 32.8%.
The average comprises five short-term price targets ranging from a low of $303.00 to a high of $450.00, with a standard deviation of $54.9. While the lowest estimate indicates an increase of 7.2% from the current price level, the most optimistic estimate points to a 59.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for VICR, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in VICRAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 24.2%, as two estimates have moved higher compared to no negative revision.
Moreover, VICR currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much VICR could gain, the direction of price movement it implies does appear to be a good guide.
From a technical perspective, Vicor Corporation (VICR - Free Report) is looking like an interesting pick, as it just reached a key level of support. VICR's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
VICR has rallied 54.8% over the past four weeks, and the company is a #1 (Strong Buy) on the Zacks Rank at the moment. This combination indicates VICR could be poised for a breakout.
Looking at VICR's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 2 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on VICR for more gains in the near future.
ANDOVER, Mass., Oct. 06, 2026 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) announced today it will hold its third quarter 2026 earnings conference call and webcast on Tuesday, October 20, 2026 at 8:00 a.m. (Eastern). Prepared remarks regarding the company's financial and operational results for the three and nine months ended September 30, 2026 will be followed by a question and answer period with Patrizio Vinciarelli, Chief Executive Officer, Jim Schmidt, Chief Financial Officer, and Phil Davies, Corporate Vice President, Global Sales and Marketing.
Results for the third quarter will be released over GlobeNewswire at 7:00 a.m. on October 20, 2026 and the press release and a summary of the company's financial statements will be available shortly thereafter on the Investor Relations page of Vicor's website.
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 October 20, 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.
About Vicor
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
www.vicorpower.com
For further information contact:
Vicor Corporation
James F. Schmidt
Chief Financial Officer
Office: (978) 470-2900
Email: [email protected]
Listen to the audio version of this article (generated by AI).
For the past two years, we’ve spent a lot of time talking about the AI Boom as a semiconductor story.
First, the world needed more GPUs.
Then it needed more memory.
Then networking.
Then cooling.
Then power.
Then data centers.
And now? Apparently, AI needs space. Literally.
Google (GOOGL, GOOG) has published new research exploring what may sound like science fiction at first glance: putting AI computing infrastructure in orbit. The company’s Project Suncatcher envisions fleets of solar-powered satellites equipped with Google’s Tensor Processing Units, or TPUs, communicating through high-speed optical links and performing machine-learning workloads in space.
And Google isn’t alone.
Redwire (RDW) recently announced a partnership with Sophia Space to develop orbital data-center infrastructure. Honda is working with Redwire on robotic systems for future commercial space stations. Meanwhile, terrestrial data-center developers are increasingly confronting power shortages, grid constraints, community opposition, and demands for enormous new sources of electricity.
At first glance, all these developments look unrelated.
We don’t think they are. We think they’re different manifestations of the exact same underlying trend:
The AI infrastructure boom is getting so big that the industry’s biggest challenge is increasingly becoming physical scarcity.
Not a lack of demand. But a lack of everything needed to satisfy that demand. And that has enormous investment implications.
The AI Boom Keeps Getting Bigger Let’s start with the demand side, because the numbers there have become almost difficult to comprehend.
Bloomberg Intelligence recently raised its forecast for the annual AI accelerator market in 2030 from about $560 billion to $1.4 trillion.
That’s a 150% increase.
The firm now expects accelerator revenues to grow roughly 38% annually through the end of the decade, with the market approaching $1 trillion as early as 2028. Importantly, that forecast isn’t simply assuming Nvidia keeps selling more expensive GPUs. Bloomberg increased its expected accelerator unit shipments by 50% while also raising its expected blended selling prices by 65%.
In other words:
We’re going to need far more AI chips, and each AI system is going to contain far more valuable hardware.
And we’re already seeing evidence that demand is outrunning supply.
Amazon Web Services is raising pricing on reserved GPU capacity by about 15%.
Micron (MU) just said more than 75% of its fiscal 2027 shipments are already committed, with allocation discussions moving into 2028 and some customer agreements stretching beyond 2030.
Management still can’t identify when DRAM supply will catch up with demand.
And Micron is responding by dramatically increasing investment. After spending $27.37 billion in fiscal 2026, its current plans imply more than roughly $50 billion of capex in fiscal 2027.
Meanwhile, Anthropic has reportedly committed roughly $518 billion to compute and infrastructure over approximately the next decade, with about 80% of those obligations reportedly noncancelable or payable regardless of usage.
This doesn’t look like an infrastructure cycle that’s nearing its peak. On the contrary, it looks like the cycle is running into the physical limits of its supply chain.
Power Is the New Bottleneck The AI Boom started with a chip shortage. But as more accelerators came online, another bottleneck emerged: memory.
Today’s leading AI systems require enormous amounts of high-bandwidth memory, or HBM, because the chips need to constantly move massive datasets into and out of the processors.
That requirement is growing rapidly.
Bloomberg expects HBM contract pricing to rise 70% to 80% in 2027, while next-generation accelerators are incorporating significantly more memory per chip. The result is that memory is becoming an increasingly large portion of the value of an AI system.
Then comes power delivery.
Vicor (VICR) recently raised its quarterly growth outlook twice in a matter of weeks, most recently to more than 30% sequential revenue growth, specifically because royalties tied to its Vertical Power Delivery technology increased faster than expected.
Why?
Because supplying enormous amounts of electricity efficiently to increasingly powerful AI processors is itself becoming a valuable technology problem.
And once that problem is solved inside the server, the same issue appears one level higher.
The data center needs electricity.
A lot of it.
That’s why Amazon (AMZN) just signed a long-term agreement supporting more than $3 billion of investment at Maryland’s Calvert Cliffs nuclear plant.
It’s why governments around the world are rethinking how giant data centers connect to their electricity grids.
Finland, for example, is considering rules that would prioritize smaller grid connections while requiring certain large electricity users to bring substantially more local generation and flexibility to the system.
And CoreWeave (CRWV) CEO Mike Intrator recently made what we think is one of the most important comments of this entire debate.
Asked about growing regulatory pushback against data-center development, he said the company has seen “absolutely not” any reduction in orders.
His point was simple: Restrictions aren’t reducing demand. Rather, they’re changing where the infrastructure gets built.
That is the key.
AI Infrastructure Is Becoming a Geography Problem For decades, computing became progressively less constrained by geography.
Software moved to the cloud.
Applications became accessible everywhere.
Data moved instantaneously.
AI is partially reversing that trend. Because the intelligence may be digital, but the infrastructure producing it is extremely physical.
A modern AI data center requires chips manufactured in billion-dollar fabs, HBM produced in highly specialized facilities, advanced networking, transformers, cooling equipment, enormous amounts of land, and gigawatts of reliable electricity.
Those resources aren’t available everywhere. And increasingly, they aren’t available fast enough anywhere.
So companies are adapting.
Some are moving data centers closer to available energy. Some are financing new power generation themselves. Some are pursuing nuclear plants. Some are exploring natural gas. Some are moving infrastructure across national borders.
And now Google is asking an even more radical question: Why build all the AI infrastructure on Earth at all?
Google’s Wild Idea: Put the Data Center in Space Google’s Project Suncatcher research starts with an observation that is both obvious and surprisingly powerful.
The Sun is the largest energy source in the solar system.
On Earth, solar generation has to deal with nighttime, weather, land constraints, and the cost of transmitting electricity from where it is generated to where it is consumed.
In orbit, sunlight can potentially be accessed much more consistently.
So Google researchers are studying a system in which satellites carry TPUs and solar arrays and communicate with one another using free-space optical links.
There are obviously enormous engineering challenges.
Launch costs.
Heat dissipation.
Radiation.
Networking.
Servicing.
Reliability.
But Google has already begun testing some of the critical assumptions.
Its researchers found that Trillium TPUs survived radiation exposure equivalent to roughly a five-year mission without permanent failure. And Google’s analysis suggests that if launch costs to low-Earth orbit eventually fall below roughly $200 per kilogram — something its learning-curve analysis suggests may become possible in the mid-2030s — amortized launch costs could become roughly comparable to terrestrial data-center energy costs on a per-kilowatt basis. Pasted text
We’re not saying Google is about to replace Virginia data centers with orbital TPU farms next year.
Obviously not.
This is a moonshot.
But the fact that one of the largest computing companies on Earth is seriously studying this idea tells us something very important about the magnitude of the problem.
The industry isn’t searching for less compute.
It’s searching for dramatically more places to put it.
The Biggest AI Winners May Be the Companies Solving Scarcity This is why we’ve consistently argued that investors shouldn’t think about the AI Boom as simply an Nvidia story. The opportunity keeps broadening.
First there were accelerator winners. Then memory winners. Networking winners. Power-management winners. Equipment winners. Utilities. Nuclear. Data-center developers. And potentially, eventually, space infrastructure.
The common thread isn’t any one technology, but scarcity.
Whenever AI demand runs into a bottleneck, an enormous economic incentive emerges to solve that bottleneck.
Not enough GPUs? Build more GPUs.
Not enough memory? Build more fabs.
Not enough power? Restart nuclear plants.
Not enough grid capacity? Build generation directly beside the data center.
Not enough suitable terrestrial infrastructure? Maybe start looking up.
And as AI agents become increasingly capable, these demands should only intensify.
OpenAI’s Dots and Meta’s (META) Muse point toward a world where AI doesn’t simply answer one prompt and stop. Agents can continue working after users leave, operating browsers, executing code, retrieving information, and performing multistep assignments.
That means one human request can trigger dozens (eventually perhaps hundreds) of computational actions.
More inference, CPUs, and memory. More networking, storage, and electricity. And, last but not least, more infrastructure.
That’s why we remain convinced the AI infrastructure cycle has years left to run. The bottlenecks are evidence of how quickly it’s expanding.
The Bigger Picture Markets remain noisy.
Rates are high. Oil remains elevated. And rising Treasury yields keep putting pressure on stock valuations.
Those forces have kept AI stocks trapped in the tug-of-war we’ve been discussing for months: earnings pulling stocks higher while rates push valuations lower.
But underneath that noise, the fundamental AI story continues to strengthen.
Infrastructure commitments are stretching into the 2030s. Memory supply is tight. Data-center developers are searching for electricity. Nuclear power is attracting renewed interest.
And Google is investigating whether some of the computing should simply leave the planet.
Put it all together, and a bigger picture emerges.
The AI boom’s next chapter may depend on who can build the infrastructure fast enough to keep up.
More chips. More power. More computing capacity… potentially even in orbit.
That’s where our research is taking us. And it’s why I want you to see what I’m calling “XPANSE.”
It centers on an ambitious shift taking shape around Elon Musk’s businesses… one that I believe could connect several of the opportunities we’ve been tracking, from AI infrastructure and advanced manufacturing to the emerging space economy.
The question that interests me most is… which companies could get paid to help build it?
Even the most ambitious vision needs suppliers. Someone has to provide the specialized equipment, critical materials, and essential components that turn an idea into something that works.
In my XPANSE presentation, I explain the potential shift, why it matters for America’s technological future, and three steps investors can take to prepare. I also share the name and ticker of an investment positioned to participate, free of charge.
The infrastructure constraints we’ve discussed aren’t going away overnight. For the companies that help solve them, that could mean years of opportunity.
Watch my XPANSE presentation to see where I believe that opportunity is taking shape.
Vicor Corporation (NASDAQ:VICR – Get Free Report) CEO Patrizio Vinciarelli sold 20,000 shares of the business’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $316.13, for a total transaction of $6,322,600.00. Following the transaction, the chief executive officer owned 8,327,390 shares in the company, valued at approximately $2,632,537,800.70. This represents a 0.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.
Vicor Stock Performance Shares of NASDAQ:VICR traded down $10.72 during midday trading on Monday, hitting $298.18. 284,113 shares of the stock were exchanged, compared to its average volume of 851,140. Vicor Corporation has a 52-week low of $48.53 and a 52-week high of $382.65. The business’s fifty day simple moving average is $219.16 and its two-hundred day simple moving average is $243.95. The company has a market capitalization of $13.75 billion, a PE ratio of 95.58 and a beta of 2.37.
Vicor (NASDAQ:VICR – Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The electronics maker reported $1.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.39. Vicor had a return on equity of 19.83% and a net margin of 30.65%.The firm had revenue of $143.35 million during the quarter, compared to analysts’ expectations of $138.37 million. During the same quarter last year, the firm earned $0.91 earnings per share. The business’s revenue for the quarter was up 49.3% on a year-over-year basis. As a group, equities analysts anticipate that Vicor Corporation will post 4.07 EPS for the current year.
Analyst Ratings Changes Several brokerages recently commented on VICR. Needham & Company LLC boosted their price target on Vicor from $320.00 to $350.00 and gave the company a “buy” rating in a research note on Thursday. Roth Capital reaffirmed a “buy” rating and set a $375.00 price objective on shares of Vicor in a research report on Tuesday, September 22nd. Weiss Ratings cut shares of Vicor from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, September 18th. Zacks Research raised shares of Vicor from a “hold” rating to a “strong-buy” rating in a research report on Thursday. Finally, Craig Hallum increased their price target on shares of Vicor to $450.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $391.67. Read Our Latest Research Report on Vicor
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in VICR. BlackRock Inc. acquired a new position in Vicor in the 2nd quarter valued at approximately $934,612,000. Jupiter Topco LLC bought a new stake in shares of Vicor in the 2nd quarter worth approximately $3,934,000. Maxi Investments CY Ltd acquired a new stake in shares of Vicor during the 2nd quarter worth approximately $2,089,000. Tidal Investments LLC grew its holdings in shares of Vicor by 87.8% during the 2nd quarter. Tidal Investments LLC now owns 82,874 shares of the electronics maker’s stock worth $31,474,000 after purchasing an additional 38,756 shares in the last quarter. Finally, The Manufacturers Life Insurance Company increased its position in shares of Vicor by 39.6% during the first quarter. The Manufacturers Life Insurance Company now owns 603,364 shares of the electronics maker’s stock valued at $97,142,000 after purchasing an additional 171,175 shares during the period. Institutional investors own 47.45% of the company’s stock.
About Vicor (Get Free Report)
Vicor Corporation (NASDAQ:VICR) designs, develops, manufactures and markets modular power-conversion products and systems. Its technologies are used to convert, regulate and distribute electrical power in electronic equipment, with an emphasis on compact, efficient and scalable power-delivery architectures.
The company’s product portfolio includes AC-to-DC and DC-to-DC converters, power modules, power systems and related components. Vicor’s Factorized Power Architecture and associated products are designed to support power delivery from the source to processors, memory, communications equipment and other demanding loads.
Founded in 1981 and headquartered in Andover, Massachusetts, Vicor serves customers and markets worldwide.
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VICR designs, develops, manufactures, and sells modular power components to convert electrical power for other devices, including AC-DC converters, complete power systems, and related accessories being used in AI data centers. VICR’s first-quarter fiscal 2026 earnings report showed quarterly revenue of $143.4 million (a 26.9% sequential rise) driven by products and royalties, GAAP diluted per-share earnings of $1.04 (a 14.3% year-over-year gain), an order backlog of $379.7 million, and $453.6 million in cash. The company reports again on Oct. 27.
It’s no wonder VICR shares are up 182% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, October 2nd:
Vicor (VICR - Free Report) : This company, which designs, develops, manufactures and markets modular power components and systems to convert electrical power for a range of devices, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 17% over the last 60 days.
Vicor’s shares gained 9.1% over the last three month compared with the S&P 500’s gain of 2.5%. The company possesses a Momentum Score of A.
Flexsteel Industries (FLXS - Free Report) : This company, which is engaged in the design, manufacture and sale of a broad line of quality upholstered furniture for residential, commercial, and recreational vehicle seating use, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.8% over the last 60 days.
Flexsteel Industries’ shares gained 19.6% over the last three month compared with the S&P 500’s gain of 2.5%. The company possesses a Momentum Score of B.
Demant (WILYY - Free Report) : This company, which is engaged in the healthcare industry and develops, manufactures and sells products and equipment designed to aid the hearing and communication of individuals, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.
Demant’s shares gained 18.6% over the last three month compared with the S&P 500’s gain of 2.5%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Gray Media Inc. (GTN - Free Report) : This multimedia company, which owns or operates television stations and digital assets principally in the United States, has seen the Zacks Consensus Estimate for its current year earnings increasing 24.9% over the last 60 days.
Vicor (VICR - Free Report) : This company, which designs, develops, manufactures and markets modular power components and systems to convert electrical power for a range of devices, has seen the Zacks Consensus Estimate for its current year earnings increasing 17% over the last 60 days.
EmbraerEmpresa Brasileira de Aeronautica (EMBJ - Free Report) : This company, which designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets, has seen the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.
Demant (WILYY - Free Report) : This company, which is engaged in the healthcare industry and develops, manufactures and sells products and equipment designed to aid the hearing and communication of individuals, has seen the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 day.
Heico (HEI - Free Report) : This company, which is one of the world’s leading manufacturers of Federal Aviation Administration approved jet engine and aircraft component replacement parts, has seen the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ANDOVER, Mass., Sept. 30, 2026 (GLOBE NEWSWIRE) -- On September 30, 2026, Vicor raised its Q3 sequential growth guidance from more than 20% to more than 30% in view of increased royalties from the previously announced first non-exclusive license to Vertical Power Delivery (VPD).
About Vicor
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
www.vicorpower.com
For further information contact:
Vicor Corporation
James F. Schmidt
Chief Financial Officer
Office: (978) 470-2900
Email: [email protected]
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Vicor (VICR - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Vicor currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for VICR that show why this modular power components company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For VICR, shares are up 26.6% over the past week while the Zacks Electronics - Miscellaneous Components industry is up 0.88% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 65.17% compares favorably with the industry's 1.96% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Vicor have risen 12.96%, and are up 484.63% in the last year. On the other hand, the S&P 500 has only moved 3.43% and 16.37%, respectively.
Investors should also take note of VICR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now VICR is averaging 859,707 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with VICR.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost VICR's consensus estimate, increasing from $3.12 to $3.65 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that VICR is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Vicor on your short list.
Power components and systems specialist Vicor's (VICR -2.51%) stock was loaded with energy over the past few trading days. According to data compiled by S&P Global Market Intelligence, the company's equity was up by almost 24% week to date, as of Friday morning before market open. A guidance revision played a major role in the share price improvement.
Doubling down On Monday, Vicor announced that it was lifting its forecast for third-quarter revenue growth. The company's top line is now anticipated to expand by over 20% sequentially during the period, well above the previous guidance of almost 10%.
Image source: Getty Images.
Vicor added that this is due to royalties from a non-exclusive license the company granted for its vertical power delivery (VPD) technology. It did not specify the amount involved. The company said that four "leading" businesses have secured such licenses.
None of these counterparties were identified, but they were described as being original equipment manufacturers (OEMs) and hyperscalers.
Premium Feature
Moneyball Superscore
72/100
Today's Change
(
-2.51
%) $
-7.10
Current Price
$
276.06
A stock with impressive power As a supplier of equipment used in artificial intelligence (AI) deployments, Vicor is in the midst of a frenzied build-out of the hot technology of our age. The company's recent performance reflects this; it posted impressive year-over-year growth in both its first and second quarters of this year while convincingly beating analyst estimates.
That raised guidance should give all Vicor investors a shot of confidence that the company is continuing to speed down the right track -- particularly given that its growth is boosted by extremely high-margin licensing royalty revenue. The stock looks very much like a buy these days.
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 Corporation (NASDAQ:VICR – Get Free Report) shares were up 12.8% during mid-day trading on Tuesday . The stock traded as high as $251.00 and last traded at $252.5650. 338,780 shares were traded during trading, a decline of 60% from the average session volume of 840,348 shares. The stock had previously closed at $223.90.
Key Vicor News Here are the key news stories impacting Vicor this week:
Positive Sentiment: Higher third-quarter guidance was the primary catalyst. Vicor raised its Q3 growth outlook to more than 20%, prompting a sharp premarket and after-hours reaction. The improved outlook suggests stronger demand for the company’s power-conversion products and was subsequently described as an upgrade to its growth and royalty-income forecast. Why Vicor Shares Are Trading Higher Positive Sentiment: AI customer and licensing activity is strengthening the long-term growth narrative. Vicor licensed its Vertical Power Delivery patents to another AI-system manufacturer. The arrangement could generate royalties and may also lead the customer to purchase Vicor modules, supporting potentially higher-margin recurring income as AI infrastructure demand expands. Vicor Licenses Power Patents to AI System Maker Positive Sentiment: Analyst sentiment remains supportive. Roth MKM and Needham reiterated Buy ratings, with reported price targets of $375 and $320, respectively. Analysts have also been raising earnings estimates, reinforcing expectations that the guidance increase could translate into stronger financial results. Analysts Are Bullish on Vicor Neutral Sentiment: Broader market conditions are favorable but add limited company-specific information. The Nasdaq 100 was testing records as the AI trade continued to lead technology stocks, providing a supportive backdrop for VICR. Negative Sentiment: Momentum and valuation risks are notable. Benzinga flagged Vicor’s overbought relative-strength reading, while the stock’s high earnings multiple leaves less room for disappointment if AI demand, licensing revenue or execution falls short of expectations. Industrials Stocks With Overbought RSI Readings Analyst Upgrades and Downgrades Several brokerages recently weighed in on VICR. Roth Capital restated a “buy” rating and issued a $375.00 price target on shares of Vicor in a research report on Tuesday. Zacks Research lowered shares of Vicor from a “strong-buy” rating to a “hold” rating in a research report on Thursday, July 2nd. Weiss Ratings lowered Vicor from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. Craig Hallum lifted their price objective on shares of Vicor to $450.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $320.00 target price on shares of Vicor in a research note on Tuesday. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Vicor has an average rating of “Moderate Buy” and an average target price of $381.67.
Read Our Latest Stock Report on Vicor Vicor Stock Performance The business’s 50 day moving average is $209.82 and its 200 day moving average is $238.13. The company has a market capitalization of $13.06 billion, a price-to-earnings ratio of 90.76 and a beta of 2.35.
Vicor (NASDAQ:VICR – Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The electronics maker reported $1.04 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.39. The business had revenue of $143.35 million for the quarter, compared to the consensus estimate of $138.37 million. Vicor had a return on equity of 19.83% and a net margin of 30.65%.The company’s quarterly revenue was up 49.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.91 EPS. Sell-side analysts predict that Vicor Corporation will post 3.64 EPS for the current year.
Insider Buying and Selling at Vicor In related news, VP Philip Davies sold 3,073 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $177.70, for a total transaction of $546,072.10. Following the completion of the sale, the vice president owned 1,920 shares of the company’s stock, valued at approximately $341,184. This represents a 61.55% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Zmira Lavie sold 908 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $250.00, for a total transaction of $227,000.00. Following the transaction, the director directly owned 908 shares in the company, valued at approximately $227,000. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 91,157 shares of company stock worth $30,270,191. Company insiders own 28.30% of the company’s stock.
Institutional Trading of Vicor A number of large investors have recently modified their holdings of the stock. GoalVest Advisory LLC grew its position in Vicor by 23.5% in the 2nd quarter. GoalVest Advisory LLC now owns 321 shares of the electronics maker’s stock valued at $122,000 after buying an additional 61 shares during the last quarter. Carolina Wealth Advisors LLC raised its position in Vicor by 70.9% during the 2nd quarter. Carolina Wealth Advisors LLC now owns 147 shares of the electronics maker’s stock worth $56,000 after buying an additional 61 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in shares of Vicor by 1.2% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,692 shares of the electronics maker’s stock worth $916,000 after acquiring an additional 68 shares during the period. ProShare Advisors LLC lifted its stake in shares of Vicor by 1.7% in the 4th quarter. ProShare Advisors LLC now owns 4,469 shares of the electronics maker’s stock worth $490,000 after acquiring an additional 74 shares during the period. Finally, First PREMIER Bank boosted its holdings in shares of Vicor by 20.0% in the second quarter. First PREMIER Bank now owns 600 shares of the electronics maker’s stock valued at $228,000 after acquiring an additional 100 shares in the last quarter. Hedge funds and other institutional investors own 47.45% of the company’s stock.
Vicor Company Profile (Get Free Report)
Vicor Corporation (NASDAQ: VICR) designs, manufactures and markets modular power components and power systems. The company’s products are used to convert, regulate and distribute electrical power in electronic systems, with an emphasis on high-density, efficient and scalable power-conversion technology.
Its portfolio includes AC-to-DC and DC-to-DC power modules, bus converters, point-of-load regulators, power accessories and complete power systems. Vicor’s Factorized Power Architecture separates power conversion, transformation and regulation functions to help customers address power-density, thermal-management and system-design requirements.
Vicor serves customers in markets including data centers and communications infrastructure, automotive and transportation, aerospace and defense, industrial equipment, and other high-performance electronics applications.
Further Reading Five stocks we like better than Vicor Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss Receive News & Ratings for Vicor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vicor and related companies with MarketBeat.com's FREE daily email newsletter.
State Street Corp decreased its holdings in shares of Vicor Corporation (NASDAQ:VICR – Free Report) by 10.5% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 726,021 shares of the electronics maker’s stock after selling 85,596 shares during the quarter. State Street Corp owned 1.57% of Vicor worth $275,728,000 at the end of the most recent quarter.
Several other hedge funds have also bought and sold shares of VICR. BlackRock Inc. bought a new position in shares of Vicor in the 2nd quarter worth $934,612,000. Andar Capital Management HK Ltd purchased a new position in Vicor in the second quarter worth $101,100,000. The Manufacturers Life Insurance Company grew its position in Vicor by 39.6% in the first quarter. The Manufacturers Life Insurance Company now owns 603,364 shares of the electronics maker’s stock worth $97,142,000 after acquiring an additional 171,175 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Vicor by 43.4% in the first quarter. Arrowstreet Capital Limited Partnership now owns 536,274 shares of the electronics maker’s stock valued at $86,340,000 after acquiring an additional 162,186 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in Vicor during the second quarter valued at about $53,161,000. 47.45% of the stock is currently owned by institutional investors.
Vicor Trading Up 5.5% NASDAQ VICR opened at $283.16 on Thursday. The firm has a market cap of $13.06 billion, a PE ratio of 90.76 and a beta of 2.35. Vicor Corporation has a 1-year low of $47.56 and a 1-year high of $382.65. The stock has a 50-day moving average of $209.82 and a 200-day moving average of $238.13.
Vicor (NASDAQ:VICR – Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The electronics maker reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.39. Vicor had a return on equity of 19.83% and a net margin of 30.65%.The business had revenue of $143.35 million for the quarter, compared to analyst estimates of $138.37 million. During the same period last year, the company earned $0.91 EPS. Vicor’s revenue for the quarter was up 49.3% compared to the same quarter last year. As a group, equities research analysts forecast that Vicor Corporation will post 3.64 earnings per share for the current fiscal year. Insider Activity In other Vicor news, VP Philip D. Davies sold 3,073 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $177.70, for a total value of $546,072.10. Following the transaction, the vice president owned 1,920 shares in the company, valued at approximately $341,184. The trade was a 61.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Patrizio Vinciarelli sold 700 shares of the firm’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $302.40, for a total value of $211,680.00. Following the completion of the sale, the chief executive officer directly owned 8,347,390 shares in the company, valued at $2,524,250,736. The trade was a 0.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 91,157 shares of company stock valued at $30,270,191. 28.30% of the stock is owned by corporate insiders.
Wall Street Analyst Weigh In VICR has been the subject of several research analyst reports. Needham & Company LLC reaffirmed a “buy” rating and set a $320.00 price target on shares of Vicor in a research note on Tuesday. Weiss Ratings downgraded Vicor from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. Roth Capital reaffirmed a “buy” rating and issued a $375.00 target price on shares of Vicor in a research note on Tuesday. Craig Hallum increased their price target on shares of Vicor to $450.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Finally, Zacks Research downgraded shares of Vicor from a “strong-buy” rating to a “hold” rating in a research note on Thursday, July 2nd. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Vicor currently has an average rating of “Moderate Buy” and an average price target of $381.67.
View Our Latest Research Report on VICR
More Vicor News Here are the key news stories impacting Vicor this week:
Positive Sentiment: Higher third-quarter guidance was the primary catalyst. Vicor raised its Q3 growth outlook to more than 20%, prompting a sharp premarket and after-hours reaction. The improved outlook suggests stronger demand for the company’s power-conversion products and was subsequently described as an upgrade to its growth and royalty-income forecast. Why Vicor Shares Are Trading Higher Positive Sentiment: AI customer and licensing activity is strengthening the long-term growth narrative. Vicor licensed its Vertical Power Delivery patents to another AI-system manufacturer. The arrangement could generate royalties and may also lead the customer to purchase Vicor modules, supporting potentially higher-margin recurring income as AI infrastructure demand expands. Vicor Licenses Power Patents to AI System Maker Positive Sentiment: Analyst sentiment remains supportive. Roth MKM and Needham reiterated Buy ratings, with reported price targets of $375 and $320, respectively. Analysts have also been raising earnings estimates, reinforcing expectations that the guidance increase could translate into stronger financial results. Analysts Are Bullish on Vicor Neutral Sentiment: Broader market conditions are favorable but add limited company-specific information. The Nasdaq 100 was testing records as the AI trade continued to lead technology stocks, providing a supportive backdrop for VICR. Negative Sentiment: Momentum and valuation risks are notable. Benzinga flagged Vicor’s overbought relative-strength reading, while the stock’s high earnings multiple leaves less room for disappointment if AI demand, licensing revenue or execution falls short of expectations. Industrials Stocks With Overbought RSI Readings About Vicor (Free Report)
Vicor Corporation (NASDAQ: VICR) designs, manufactures and markets modular power components and power systems. The company’s products are used to convert, regulate and distribute electrical power in electronic systems, with an emphasis on high-density, efficient and scalable power-conversion technology.
Its portfolio includes AC-to-DC and DC-to-DC power modules, bus converters, point-of-load regulators, power accessories and complete power systems. Vicor’s Factorized Power Architecture separates power conversion, transformation and regulation functions to help customers address power-density, thermal-management and system-design requirements.
Vicor serves customers in markets including data centers and communications infrastructure, automotive and transportation, aerospace and defense, industrial equipment, and other high-performance electronics applications.
Featured Articles Five stocks we like better than Vicor Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss 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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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.
Vicor VICR shares surged after the company more than doubled its Q3 sequential growth forecast, now anticipating over 20% revenue growth, translating to approximately $172 million. This optimistic outlook follows VICR's recent announcement of a non-exclusive license granted to a prominent AI OEM for its Vertical Power Delivery (VPD) technology, which is tailored to provide high-density power for advanced AI computing and networking processors.
Licensing Momentum: Four major OEMs and hyperscalers have secured licenses for VICR's power-system technology. Management noted that unlicensed hyperscalers approached VICR after certain computing systems faced importation bans due to infringing NBMs, leading to a successful licensing strategy now being applied to VPD. Multi-Source Opportunity: VICR's licensing model enables licensed OEMs and hyperscalers to source potentially infringing power modules from third-party suppliers. This supports the multi-source supply chains necessary for large customers, allowing VICR to earn royalties on third-party modules while continuing to sell its high-performance products. Accelerating Growth: In Q2, revenue rose 26.9% sequentially to $143.4 million, with product revenue increasing by about 15% and royalty revenue more than doubling. The book-to-bill ratio remained above 1, the one-year backlog grew 26% sequentially to $379.7 million, and gross margin expanded by 280 basis points to 58.0%. Scale: In June, VICR raised its long-term financial goals to $2.5 billion in revenue, targeting a 70% gross margin and 40% operating income. The company is also expanding its capacity, recently acquiring sites for ChiP Fab-2 and Fab-3 as its existing Fab-1 nears capacity, enhancing its manufacturing capabilities to support future growth.Shares of VICR jumped following the new VPD licensing agreement, extending gains after the company raised its Q3 guidance in relation to this deal. This marks the second consecutive quarter that VICR has increased its revenue expectations, as management adopted a conservative stance on licensing assumptions pending developments in its ITC case. The opportunity is bolstered by the flexibility that multi-source supply offers OEMs and hyperscalers, while the rising power and current density demands of AI processors underscore the need for advanced power-delivery solutions like VPD. VICR has experienced a remarkable increase, with shares up over 300% year-to-date, although they still fall short of the all-time high of $382.65 reached in June. Continued success in licensing and effective capacity expansion will be crucial as VICR aims to achieve its ambitious long-term financial targets.
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.
Vicor (VICR - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this modular power components company reflects growing optimism of analysts on its earnings prospects, 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, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates 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 $0.87 per share for the current quarter, which represents a year-over-year change of +38.1%.
Over the last 30 days, one estimate has moved higher for Vicor compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 16%.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $3.49 per share, representing a year-over-year change of +33.7%.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for Vicor versus no negative revisions. This has pushed the consensus estimate 6.4% higher.
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 17.9% 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 (VICR - Free Report) closed the last trading session at $223.9, gaining 17.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $359.6 indicates a 60.6% upside potential.
The average comprises five short-term price targets ranging from a low of $253.00 to a high of $450.00, with a standard deviation of $75.78. While the lowest estimate indicates an increase of 13% from the current price level, the most optimistic estimate points to a 101% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for VICR, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why VICR Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 6.4%, as one estimate has moved higher compared to no negative revision.
Moreover, VICR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much VICR could gain, the direction of price movement it implies does appear to be a good guide.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.
Shares of Vicor Corp (NASDAQ:VICR) rose sharply in pre-market trading after the company raised guidance for the third quarter.
After the market close on Monday, Vicor raised its third-quarter growth guidance from nearly 10% to more than 20% on a sequential basis due to royalties from a non-exclusive license to Vertical Power Delivery.
Vicor shares jumped 11.2% to $249.00 in pre-market trading
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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.
ANDOVER, Mass., Sept. 21, 2026 (GLOBE NEWSWIRE) -- On September 21, 2026, Vicor raised its Q3 sequential growth guidance from nearly 10% to more than 20% in view of royalties from a recently announced non-exclusive license to Vertical Power Delivery (VPD).
Commenting on industry trends, CEO Patrizio Vinciarelli stated: "Among OEMs and hyperscalers, four leading companies have secured licenses to power system technology pioneered and patented by Vicor. Unlicensed hyperscalers first reached out after their computing systems were banned from importation because of infringing NBMs; and, upon recognition that computing systems using VPD could also be banned. Since the first patent to VPD was only recently asserted, it is still possible to secure a license at an early stage of escalation with a low royalty rate."
“Suppliers selling otherwise infringing power modules to licensed OEMs and hyperscalers contribute to scalability in an ecosystem requiring multi-source supply chains. Responsible companies, respecting the patent rights of innovators, will benefit from expanded market opportunities enabled by Vicor’s power system technology.”
“Suppliers that copy innovators and disregard their patent rights will continue to cause supply disruption to their customers and be liable for monetary damages to Vicor. They may also be excluded from the market opportunity to supply power systems covered by Vicor patents.”
About Vicor
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
www.vicorpower.com
For further information contact:
Vicor Corporation
James F. Schmidt
Chief Financial Officer
Office: (978) 470-2900
Email: [email protected]
Vicor Corp (NASDAQ:VICR) shares are trading higher in Monday’s after-hours session after the company raised guidance for the third quarter.
Vicor stock is charging ahead with explosive momentum. Why is VICR stock surging? Vicor Raises Q3 OutlookAfter the market close on Monday, Vicor raised its third-quarter growth guidance from nearly 10% to more than 20% on a sequential basis due to royalties from a non-exclusive license to Vertical Power Delivery.
“Suppliers selling otherwise infringing power modules to licensed OEMs and hyperscalers contribute to scalability in an ecosystem requiring multi-source supply chains. Responsible companies, respecting the patent rights of innovators, will benefit from expanded market opportunities enabled by Vicor’s power system technology,” said Patrizio Vinciarelli, CEO of Vicor.
Vicor announced last week that it granted a non-exclusive license to a new AI-related OEM licensee with the right to procure Vertical Power Delivery modules covered by Vicor patents.
Vicor said Monday that suppliers who copy the company’s patented innovations risk supply disruptions for their customers, monetary damages and exclusion from the market for Vicor’s patented power systems.
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies.
VICR Shares Surge After HoursVicor shares were up 12.93% in after-hours trading on Monday, trading at $252.85 at the time of publication, according to Benzinga Pro.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VICR either through stock ownership, options, or other derivatives. 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.
Vicor (VICR) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
ANDOVER, Mass., Sept. 16, 2026 (GLOBE NEWSWIRE) -- Vicor has granted a non-exclusive license to a new OEM licensee with the right to procure Vertical Power Delivery (VPD) modules covered by Vicor patents from unlicensed suppliers. VPD enables high-performance AI compute and network processors fueled at a high current density from a low voltage source. VPD systems, consisting of a “multi-cell converter” and a VPD network, enable breakthrough performance by avoiding the “the last inch problem” of Lateral Power Delivery (LPD). VPD systems are protected by foundational patents to innovations conceived during a decade of pioneering research conducted by Vicor in the U.S.
VPD licensees can source VPD solutions from unlicensed global suppliers, whose multi-cell Voltage Regulators (VR) or Integrated Voltage Regulators (IVRs) are stacked in a multi-layer system. VPD solutions using high current density and high gain MCM™ current multipliers manufactured as ChiPs™ (Converters housed in Package™) in a Vicor fab are also available to licensees. MCMs enable substantially higher total system efficiency, are much thinner and mechanically and thermally adept. By procuring VPD modules for high-performance AI accelerators from Vicor, licensees may earn substantial discounts on licensing royalties for commodity VPD modules from unlicensed suppliers. The Vicor licensing practice provides OEMs and hyperscalers with multi-source flexibility, supply chain redundancy, and scalability, including from U.S. based Vicor fabs.
As high-performance compute and network processors migrate to VPD, unlicensed OEMs and hyperscalers may need a license to secure their supply chain. Potential licensees may expect a structured licensing practice providing much lower royalty rates for early adopters. Supply agreements with infringing suppliers may contain indemnification provisions for recovery of royalties and monetary damages, but cannot overcome importation bans.
About Vicor
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
For more information contact:
Stephen Germino
Director of Media Relations & PR
Vicor Corporation
978-749-8243 [email protected]
Vicor Corporation offers a unique, patented vertical power delivery solution critical for next-gen GPUs, positioning it as a potential industry standard. VICR's investment case is an asymmetric call option on its technology becoming indispensable as GPU power demands exceed 1.5–2 kW, with potential for manifold revenue growth. Patent protection forms a robust moat, but ongoing litigation and alternative chip architectures are existential risks to the hyper-growth scenario.
Vicor Corp (NASDAQ:VICR), a power technology company, shares jumped on Friday after the company unveiled plans to expand its U.S. manufacturing capacity.
The gain outpaced broader market strength, with the Industrials sector up 0.99% and the S&P 500 rising 1.00%.
• Vicor shares are climbing with conviction. Why are VICR shares rallying?
Vicor Expands Capacity as Fab-1 Nears LimitVicor is acquiring a 334,000-square-foot building on 66 acres in Merrimack, New Hampshire, plus 54 acres in Hooksett.
The sites will support ChiP Fab-2 and Fab-3, with a combined footprint of nearly one million square feet.
The expansion will add capacity beyond Vicor’s 320,000-square-foot ChiP Fab-1 in Andover, Massachusetts, which is nearing full utilization. ChiP Fab-2 has a one-year lead time to initial deployment.
Vicor entered the expansion with a growing backlog. Second-quarter backlog reached $380 million, up 26% sequentially and 145% from a year earlier.
Cash and cash equivalents increased 12.2% sequentially to about $453.6 million as of June 30.
Expansion Targets AI DemandVicor said the added capacity will help support OEMs and hyperscalers while increasing U.S.-based sourcing.
The company said its Vertical Power Delivery technology is designed for advanced AI applications constrained by multi-phase and integrated voltage regulators.
Vicor expects its licensing model and broader ChiP fab network to improve supply predictability for the AI hardware ecosystem.
The expansion comes as power infrastructure emerges as a key constraint on AI data-center growth.
Broadcom CEO Hock Tan recently said electricity availability, transformers, and data-center readiness could limit how quickly AI capacity comes online.
VICR Technical Setup: Momentum Improves, Resistance LoomsFriday’s rally is improving VICR’s short-term setup, though shares remain below key moving averages. The stock trades 2.7% below its 20-day SMA and 11.3% below its 50-day SMA.
VICR also remains 3% below its 200-day SMA and 24.8% below its 100-day SMA, leaving significant overhead resistance.
MACD is above its signal line with a positive histogram, indicating easing selling pressure. However, the 20-day SMA remains below the 50-day SMA, keeping the near-term trend bearish.
Resistance: $232.50, a nearby rebound hurdle. Support: $178.50, where buyers previously stepped in. A break below could weaken the recovery. What Vicor DoesVicor develops modular components and systems for converting and managing electrical power. Its portfolio includes power converters, integrated circuits, filters, input modules and configurable power systems.
VICR Stock Price TodayVICR Stock Price Activity: Vicor shares were up 10.84% at $197.36 at the time of publication on Friday, according to Benzinga Pro data.
ANDOVER, Mass., Sept. 11, 2026 (GLOBE NEWSWIRE) -- Vicor (NASDAQ: VICR) is purchasing a 334,000 square foot building on 66 acres of industrial land in Merrimack, New Hampshire and, separately, 54 acres in Hooksett, New Hampshire. The two sites will support the build-out of Vicor ChiP™ Fab-2 and Fab-3 with a combined footprint of nearly one million square feet. Fab-2 and Fab-3 will expand total capacity beyond that of ChiP Fab-1 which was built-out to 320,000 square feet on 16 acres of land in Andover, Massachusetts. Fab-1 utilization is approaching capacity.
With intellectual property to Vertical Power Delivery (VPD), Vicor has achieved the performance needed by advanced AI applications handicapped by the limitations of multi-phase Voltage Regulators (VRs) and Integrated Voltage Regulators (IVRs). Expanding total capacity, with a one-year lead time to initial deployment for ChiP Fab-2, will provide the scalability needed to support OEMs and hyperscalers. This expansion will fill voids in supply chains increasingly challenged by technical limitations and recurring disruptions caused by suppliers of infringing power systems. Leading OEMs and hyperscalers, whose computing systems were banned from importation because of infringing power suppliers, need Freedom to Operate (FTO) and U.S. sourcing. Vicor’s licensing practice and future capacity from a multiplicity of ChiP fabs provide predictability and performance to the AI hardware ecosystem.
About Vicor
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents, covering high density power components and power distribution architectures, to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor sells its products, and licenses its patents to power systems, used in high performance computing, industrial, transportation, aerospace and defense.
For more information contact:
Stephen Germino
Director of Media Relations & PR
Vicor Corporation
978-749-8243 [email protected]
Key Takeaways Vicor's Q2 backlog hit about $380M, up 26% sequentially and 145% year over year.ATE demand is rising as AI infrastructure drives higher testing needs and stronger bookings.Analog Devices and Texas Instruments are expanding in ATE and data centers, raising pressure. Vicor (VICR - Free Report) is benefiting from strengthening demand across high-performance computing (HPC), automatic test equipment (ATE), industrial, and aerospace & defense markets. The improving demand environment is driving higher bookings, an expanding backlog and greater utilization of Vicor’s manufacturing capacity. This momentum strengthens the company’s growth prospects as it competes across power-management markets with broader rivals such as Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) . Vicor ended the second quarter of 2026 with a backlog of approximately $380 million, up 26% sequentially and 145% year over year.
The strength of Vicor’s backlog appears to be driven primarily by demand across its end markets rather than recent licensing activity. Management noted that the recent licensing agreement contributed relatively little to the backlog increase. The second-quarter 2026 book-to-bill remained above 1, while management described bookings as strong across aerospace and defense, industrial, and HPC markets. ATE has become a particularly important growth driver, with Vicor stating that business with key ATE customers is now a large multiple of historical levels, reflecting increased testing requirements associated with the artificial intelligence (AI) infrastructure buildout.
Vicor’s differentiated technology is helping it capitalize on this demand. The company highlighted its Factorized Power Architecture, low-noise performance, signal integrity and thin-package technology as key advantages in ATE applications. It is already entrenched with some of the largest ATE companies and is expanding designs with overseas entrants. Advanced Products, meanwhile, targets large Original Equipment Manufacturers (OEMs) and hyperscalers across data-center infrastructure. These products are positioned in higher-performance applications where power density, efficiency and signal integrity are increasingly critical.
Strong demand is pushing Vicor’s first ChiP fab toward higher utilization. Management expects nearly 10% sequential revenue growth in the third quarter and more than $600 million of revenues in 2026, supported by planned double-digit sequential growth in Advanced Products revenues. However, lead times have increased a bit since demand has gone beyond available capacity, which has led some customers to place their orders earlier. To support future growth, Vicor is planning to build a second fab, while its second-generation Vertical Power Delivery strategy is intended to expand its opportunities with hyperscalers and OEMs.
VICR Faces Tough CompetitionAnalog Devices is challenging Vicor across many of the same high-growth markets. The company’s third-quarter fiscal 2026 revenues jumped 40% year over year, with industrial revenues up 53%, led by ATE, electronic test and measurement, aerospace and defense, and automation. Data-center revenues accelerated sharply, with optical and power revenues growing more than 100%. ADI highlighted that strong design activity, backlog, pipeline and bookings momentum are supporting multi-year growth across ATE and data centers.
Texas Instruments poses meaningful pressure. The company is seeing broad strength across industrial, data-center, aerospace and defense, energy infrastructure, and robotics markets. Its data-center revenues doubled year over year in the second quarter of 2026, while industrial revenues rose roughly 30%. Backlog increased for both immediate and longer-dated shipments. TXN's substantial inventory, available manufacturing capacity and competitive lead times allow it to respond rapidly when customers face supply constraints, potentially helping it win incremental designs and challenge Vicor’s ability to capture rising demand.
VICR’s Share Price Performance, Valuation & EstimatesShares of Vicor have appreciated 71.3% year to date compared with the broader Zacks Computer and Technology sector’s 17.1% growth.
VICR Stock’s Price Performance
Image Source: Zacks Investment Research
The VICR stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 35.65X compared with the broader sector’s 20.76X. Vicor has a Value Score of F.
VICR’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Vicor’s earnings is pegged at 71 cents per share, unchanged over the past 30 days, suggesting 12.7% year-over-year growth.
Vicor currently has 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 1.5-mm package and thermal capabilities address demanding AI power-delivery needs.Vicor sees 2026 hyperscaler and OEM programs potentially reaching production in late 2027.Vicor's Q2 2026 backlog hit about $380 million as it planned a second ChiP fab. Vicor (VICR - Free Report) is strengthening its AI infrastructure prospects through its second-generation Vertical Power Delivery (VPD) technology, which addresses the rising compute-density and power-delivery requirements of artificial intelligence (AI) data centers. AI hyperscalers and original equipment manufacturers (OEMs) increasingly need VPD to meet compute-density and AI-performance requirements. Vicor’s Gen 2 VPD targets current gains above 40 and current density of up to 5 amps per square millimeter (mm²), potentially strengthening its competitive position against broader power-management players such as Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) .
The technology could become increasingly relevant as hyperscalers and OEMs seek denser and more efficient processor-power architectures. Vicor has completed an initial chipset delivering about 3 amps per square millimeter for a lead customer and is developing demonstration systems for additional customers. Strong signal integrity and thermal-management capabilities further support Vicor’s differentiation as AI power architectures migrate toward lower operating voltages.
Vicor’s opportunity extends beyond customers adopting a complete Gen 2 VPD architecture. Vicor has been approached by a couple of companies seeking to use its technology alongside integrated voltage regulators (IVRs). Vicor can provide current-multiplication technology alongside IVRs, allowing it to capture content even when customers select alternative architectures. Its Factorized Power System offers significantly higher current density and efficiency, while IVR-based approaches can involve roughly 10-15% insertion losses.
Customer engagement and licensing could provide additional growth avenues. Vicor expects to engage with a hyperscaler and a couple of OEMs during the remainder of 2026, with these programs potentially moving into production in the third or fourth quarter of 2027. Its 1.5-millimeter package and thermal-management capabilities could help meet increasingly demanding AI packaging requirements. Vicor expects future relationships to combine intellectual property (IP) licensing with product sourcing related to second-generation VPD, creating opportunities to generate both royalty and product revenues.
Strong demand is supporting manufacturing expansion. Backlog reached roughly $380 million in the second quarter of 2026, rising 26% sequentially, with management noting that the latest licensing agreement contributed relatively little to the increase. Vicor’s first ChiP fab is approaching full capacity utilization, prompting plans for a second facility that could initially roughly double capacity and provide further expansion flexibility. The company expects revenues to increase nearly 10% sequentially in the third quarter of 2026 and exceed $600 million for the full year, supported by planned double-digit sequential growth in Advanced Products product revenues. The additional capacity should help support future VPD ramps while advancing Vicor’s longer-term objective of $2.5 billion in revenues and a 70% gross margin.
VICR Faces Tough CompetitionADI represents a notable challenge through its expanding high-density processor-power portfolio. Its intermediate-to-core solutions target next-generation processors operating at up to 6,000 amps and below 1 volt. The Empower Semiconductor acquisition allows ADI to take power directly into the processor package, while ADI believes its architecture can reduce compute power consumption and temperature by roughly 10-15%. Data-center power revenues grew more than 100% year over year in the third quarter of fiscal 2026.
TXN challenges VICR through its broad AI data-center power-tree portfolio and manufacturing scale. The company says many of its chips are used in the data-center power tree, while its ability to supply from dependable capacity is becoming an advantage as the market expands. Data-center revenues doubled year over year in the second quarter of 2026, and TXN says its investments in inventory and capacity, along with available clean-room space, position it to support continued growth.
Shares of Vicor have appreciated 73.3% year to date compared with the broader Zacks Computer and Technology sector’s 14.4% growth.
VICR Stock’s Price Performance
Image Source: Zacks Investment Research
The VICR stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 36.44X compared with the broader sector’s 20.66X. Vicor has a Value Score of F.
VICR’s ValuationThe Zacks Consensus Estimate for Vicor’s 2026 earnings is currently pegged at 71 cents per share, unchanged over the past 30 days, suggesting 12.70% year-over-year growth.
Vicor currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Vicor (VICR - Free Report) have gained 9.7% over the past four weeks to close the last trading session at $253.5, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $363.6 indicates a potential upside of 43.4%.
The mean estimate comprises five short-term price targets with a standard deviation of $68.97. While the lowest estimate of $273.00 indicates a 7.7% increase from the current price level, the most optimistic analyst expects the stock to surge 77.5% to reach $450.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for VICR, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in VICRAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 6.3%, as one estimate has moved higher compared to no negative revision.
Moreover, VICR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much VICR could gain, the direction of price movement it implies does appear to be a good guide.
shares rose 8.0%, closing at $253.50. The stock has shown significant price movement, trading between a 52-week high of $382.65 and a low of $45.44 over the last year.
GF Value™ verdict: Current price of $253.50 is 307.7% above its GF Value™ of $62.18, indicating significant overvaluation.GF Score™ of 81/100 suggests a strong overall company performance.Notable insider activity reveals that insiders sold $409.3M worth of shares over the past 12 months, with no reported purchases.Is VICR Overvalued or Undervalued?Vicor Corp's current valuation presents a striking contrast to its GF Value™ estimate. With a GF Value™ of $62.18, the stock is priced at a staggering 307.7% above this intrinsic value. This substantial overvaluation suggests that investors may be paying a premium for shares without a justified basis in underlying business fundamentals. The GF Valuation label classifies the stock as significantly overvalued, indicating a lack of margin of safety for potential investors.
When a stock trades significantly above its intrinsic value, it poses risks for investors. If market sentiment shifts or if Vicor fails to meet growth expectations, the stock price could decline sharply. The current price does not provide a cushion for investors against potential downturns, further underscoring the risks associated with purchasing shares at this elevated level.
How Does VICR's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)81.2x75.5xForward P/E77.9x-Vicor's current P/E ratio of 81.2x is 8% above its 5-year median P/E of 75.5x, confirming the GF Value™ verdict of overvaluation. This upward trend in the P/E ratio suggests that the stock is trading at a premium compared to its historical valuation metrics, aligning with the assessment that VICR is not an attractive buying opportunity at present.
What Does VICR's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's financial health, profitability, growth potential, valuation, and momentum. Vicor Corp boasts a GF Score™ of 81/100, indicating strong overall performance, with its highest scores in growth and profitability, while its valuation rank is notably low.
MetricRatingGF Score™81Financial Strength8/10Profitability8/10Growth10/10Valuation1/10Momentum6/10Vicor's strong growth rank of 10/10 indicates exceptional growth potential, while its profitability rank of 8/10 suggests solid earnings generation capabilities. However, the valuation rank of 1/10 reveals a significant concern regarding the high valuation metrics relative to its financial performance. This dichotomy highlights the potential for growth coupled with risks associated with the current market price.
What Are Gurus and Insiders Doing with VICR?Currently, seven gurus hold shares of Vicor Corp, with two adding to their positions and six trimming their holdings in recent quarters. This mixed activity indicates a cautious approach among institutional investors regarding the stock's future performance. The significant insider selling of $409.3M over the past year, with no insider purchases reported, raises questions about the confidence of company executives in the stock's current valuation and future prospects.
The trend of insider selling suggests that those closest to the company may have concerns about the stock's high valuation or possibly the company's performance moving forward. This could serve as a warning signal for potential investors, emphasizing the need for caution when considering an investment in VICR at its current price level.
What This Means for InvestorsIn conclusion, given the GF Value™ of $62.18, Vicor Corp
VICR +8% 81
is significantly overvalued at its current price of $253.50. With a high P/E ratio and substantial insider selling, the risks associated with this stock outweigh the potential rewards at this time. Investors should exercise caution and thoroughly evaluate their options before making any investment decisions based on the current valuation metrics.
For more detailed insights, visit the Vicor Corp
VICR +8% 81
stock page or explore the GF Value™ page.
Frequently Asked QuestionsWhat is VICR's GF Score™?
VICR's GF Score™ is 81/100, indicating strong overall performance with a solid standing in growth and profitability.
Is VICR overvalued or undervalued?
According to the GF Value™, VICR is significantly overvalued, trading at 307.7% above its intrinsic value estimate.
What is VICR's P/E ratio?
The current P/E ratio for VICR is 81.2x, which is 8% above its 5-year median of 75.5x, indicating a premium valuation compared to its historical averages.
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].
Key Takeaways Vicor shares have surged 114.2% YTD as stronger demand, backlog growth and AI prospects lift sentiment.VICR's backlog hit about $380M, up 145% y/y, while 1H revenues rose 35%.Vicor targets more than $600M in 2026 revenues as royalties rise and Gen2 VPD development advances. Vicor (VICR - Free Report) shares are trading at a premium, as suggested by a Value Score of F. In terms of the trailing 12-month EV/Sales, VICR is trading at 21.88X, higher than the broader Zacks Computer and Technology sector’s 8.44X. VICR is trading at a higher multiple compared with peers, including Monolithic Power Systems’ (MPWR - Free Report) 20.62X, Analog Devices’ (ADI - Free Report) 15.19X and Texas Instruments’ (TXN - Free Report) 13.43X.
Vicor’s Shares Trade at a Premium
Image Source: Zacks Investment Research
Is Vicor worth buying at current prices? Let us dig deep to find out.
VICR Shares Ride on AI ProspectsYear to date (YTD), Vicor shares have outperformed the broader Zacks Computer and Technology sector, as well as Monolithic Power Systems, Analog Devices and Texas Instruments. Vicor returned a whopping 114.2% YTD while the broader sector, Monolithic Power Systems, Analog Devices and Texas Instruments have returned 18.9%, 54.7%, 43.6% and 61.1%, respectively.
Vicor Stock’s Price Performance
Image Source: Zacks Investment Research
VICR’s sharp YTD appreciation has been supported by a combination of stronger operating momentum, rapidly improving demand visibility and increased confidence in its AI-related power-delivery opportunity. On a year-over-year basis, first-half 2026 revenues increased 35% to $256.3 million.
More importantly for investor sentiment, backlog reached roughly $380 million, up 26% sequentially and 145% year over year, while book-to-bill remained above 1. Vicor attributed the backlog strength largely to rising product demand rather than the new license agreement, highlighting strength across high-performance computing, automatic test equipment, industrial, and aerospace and defense markets.
The new licensing agreement materially strengthened the recurring royalty narrative. In the second quarter of 2026, royalty revenues reached $30.4 million compared with $10.4 million in the year-ago quarter, with the latest agreement expected to contribute $5 million in third-quarter 2026 and $10 million per quarter for the subsequent four quarters.
Vicor consequently raised its outlook to more than $600 million of 2026 revenues and expects nearly 10% sequential revenue growth in third-quarter 2026, reinforcing expectations that the current demand upcycle has further room to run.
VICR’s Prospects Ride on AI-Related DemandVicor benefits from its exposure to the increasing power-density requirements of AI accelerators and high-performance computing systems. The company believes that first-generation vertical power delivery solutions are increasingly constrained by insufficient current density and current gain, while Vicor’s second-generation VPD architecture is targeting current densities of up to 5 amps/mm² with current gain above 40.
The company has completed an initial 3 amps/mm² chipset for its lead customer, and is developing demonstration systems for additional customers and expects to push beyond 4 amps/mm² around late 2026 or early 2027. VICR expects engagement with additional hyperscalers and OEMs through 2026, with some programs potentially evolving into production ramps around late third-quarter 2027 or fourth-quarter 2027.
A second structural driver is the combination of product sales and IP licensing, which could increase revenue scale and margin potential. Vicor has set long-term objectives of $2.5 billion in revenues, a 70% gross margin and a 40% operating margin compared with its previous targets of $1 billion and 65%, with management describing licensing and power-module sales as mutually reinforcing businesses. Vicor already has multiple OEM licensees and one hyperscaler licensee, while management expects licensing income to expand materially over time as OEMs and hyperscalers increasingly address Vicor’s IP portfolio.
Capacity expansion is another important enabler. Demand is already absorbing additional capacity at Vicor’s first vertically integrated ChiP fab, and management said that the facility is approaching full utilization. Vicor is therefore pursuing a second fab; management indicated that the initial phase would roughly double capacity, while potential sites could ultimately accommodate two to three times the capacity of the first fab. This expansion is critical to achieving the $2.5-billion revenue objective and should provide room to support AI customers as Gen2 VPD adoption develops.
Vicor’s 2026 Earnings Estimate Revision Shows Rising TrendThe Zacks Consensus Estimate for 2026 earnings is pegged at $3.12 per share, up 6.1% over the past 30 days, suggesting 19.54% growth from the 2025 reported figure.
The consensus mark for third-quarter 2026 earnings is pegged at 71 cents per share, down by four cents over the past 30 days and indicating 12.7% growth from the figure reported in the year-ago quarter.
ConclusionVicor’s premium valuation leaves limited room for execution missteps, but the company’s improving fundamentals and expanding AI opportunity provide meaningful support for the stock. Robust backlog growth, rising royalty revenues, strengthening demand across high-performance computing markets and continued progress with its next-generation VPD technology position Vicor well for sustained growth.
Although the stock’s strong YTD rally and elevated valuation may warrant some near-term caution, Vicor’s growing exposure to AI infrastructure, expanding licensing opportunity and planned capacity additions strengthen its long-term growth prospects. Investors willing to tolerate valuation-related volatility may consider VICR an attractive stock to hold for continued participation in the AI-driven power-delivery opportunity.
Vicor currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vicor is positioned for growth as AI infrastructure drives demand for high-power-density energy conversion solutions. VICR's Vertical Power Delivery and Factorized Power Architecture technologies address the complex energy needs of next-generation AI processors. Q2 2026 saw products and licensing revenue reach $143.4 million, with the order portfolio surging 145% to $380 million year-over-year.
