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Demand for efficient power delivery/conversion platforms have contributed to Vicor's robust AI-driven growth prospects, as observed in the surging revenue/backlog growth. The outsized demand has contributed to the aggressive capacity expansions by 5x, with early accretion expected from H2'27 onwards. VICR benefits from competitors' Vertical Power Delivery patent infringement, with it supporting further licensing tailwinds with OEMs/hyperscalers.
I 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.
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.
The Zacks Electronics - Miscellaneous Components industry players like TEL, VICR, and OSIS are benefiting from the solid adoption of AI.
VICR shares rises 4.5% after Q3 earnings jump 111.1% and revenues surge 78.5%, fueled by AI demand, soaring royalty income and strong Advanced Products sales.
Assenagon Asset Management S.A. bought a new position in Vicor Corporation (NASDAQ: VICR) during the third quarter, according to the company in its most recent filing with the Securities and 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
Vicor targets AI-driven growth with expanded manufacturing capacity, strong VPD demand and rising licensing revenues, while outlining its fourth-quarter outlook.
Vicor reported Q3 2026 financial results before the market opened today. Shares of Vicor have rocketed 87% higher since the start of 2026.