Vicor VICR

NASDAQ VICR

$189.67 -3.65 (-1.89%)

As of: Sep 9, 2026 · 11:50 AM EDT

Key Stats

Market Cap8.71 Bn

P/E59.96

P/S11.30

Div. Yield0.00

Revenue Growth (1y) (Qtr)1.63

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About

VICOR CORPORATION designs, develops, manufactures, and markets modular power components and power systems for converting electrical power for use in electrically powered devices. The company focuses on high efficiency power solutions that are smaller and more efficient than conventional alternatives, leveraging proprietary semiconductor circuitry, materials, and packaging. Its core competencies lie in 48 V DC distribution while also serving other voltage standards such as…

VICOR CORPORATION generates revenue primarily from the sale of its Advanced Products and Brick Products power conversion modules, as well as from licensing its intellectual property to third parties. Sales of Advanced Products include royalty revenue from right to use licenses, while Brick Products consist of integrated power converters sold directly to customers. The company serves a broad base of original equipment manufacturers, original design manufacturers, contract manufacturers, and end users in sectors such as data centers, aerospace, defense, industrial equipment, transportation, and telecommunications.

The company operates through the following segments: Advanced Products and Brick Products.

Advanced Products: This segment consists of the company’s more recently introduced products that are largely used to implement the proprietary Factorized Power Architecture™ (FPA), enabling flexible, rapid power system design with individual components optimized for specific conversion functions. It serves large OEMs, ODMs, and their contract manufacturers, with concentration in data center and hyperscaler computing for power delivery on server motherboards, server racks, and datacenter infrastructure. It also addresses aerospace, aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications, and vehicle applications including autonomous driving, electric, and hybrid vehicles.
Brick Products: This segment comprises the company’s broad and well established families of integrated power converters that incorporate multiple conversion stages for use in conventional power system architectures. It serves a fragmented base of large and small customers concentrated in aerospace and defense electronics, industrial equipment, instrumentation and test equipment, and transportation, notably rail and heavy equipment applications.

VICOR CORPORATION holds a strong position in the power conversion industry due to its focus on research and development, patented high frequency switching topologies, and proprietary packaging that deliver greater efficiency and smaller size than many competitors. The company emphasizes product differentiation through superior performance, design flexibility, and total cost of ownership, and has achieved leadership in the emerging market for powering high performance processors used in artificial intelligence workloads. While the filing does not name specific rivals, Vicor’s competitive advantages stem from its intellectual property portfolio and its ability to serve both high volume data center customers and specialized aerospace and defense markets.

VICOR CORPORATION serves a diverse customer base that includes large original equipment manufacturers and original design manufacturers in the data center and hyperscaler segments, contract manufacturers that build server and networking hardware, aerospace and defense contractors, industrial equipment makers, transportation companies for rail and heavy equipment, and telecommunications providers. Specific customer names are not disclosed in the filing, but the company notes relationships with leading innovators in processor and accelerator design and early adopters in cloud computing and high performance computing.

Investment Thesis

▲ Bull case

Vicor Corporation is positioned to capitalize on a structural shift in power delivery technology driven by the AI and high-performance computing boom, where its second-generation VPD solution offers a unique combination of 3 amps per square millimeter current density, 40x current multiplication, and 1.5 millimeter thickness that competitors cannot match due to mechanical and thermal limitations in stacked-package approaches. This technological moat is reinforced by management’s emphasis on being "very selective" with new customer engagements, indicating pricing power and the ability to prioritize strategic, long-term relationships over volume, which supports sustainable margin expansion beyond the guided 20% effective tax rate normalization. The company’s backlog surged 70% sequentially to $300.6 million with a book-to-bill ratio above 2.0, signaling demand that far exceeds current capacity and creating a self-reinforcing cycle where strong bookings fund further capacity expansion without dilutive financing, while the one-year backlog recognition policy ensures predictable revenue conversion over the next twelve months. Management’s strategy to expand Fab One capacity from a $1 billion to at least $1.5 billion annual revenue run rate through process improvements—such as reducing cycle time on historically limiting steps and outsourcing non-critical manufacturing to interim facilities—provides near-term elasticity that delays the need for costly greenfield construction, thereby preserving capital and accelerating time-to-revenue for expanded output. The conservative licensing assumption in full-year guidance—excluding new IP deals until the second ITC case concludes in 2027—means any settlement or licensing revenue from ongoing patent enforcement actions would represent pure upside, especially given the near-100% margin profile of licensing income and Vicor’s confidence in becoming a licensor to OEMs and hyperscalers as the industry seeks protection for its power system technology.

Vicor Corporation is positioned to capitalize on a structural shift in power delivery technology driven by the AI and high-performance computing boom, where its second-generation VPD solution offers a unique combination of 3 amps per square millimeter current density, 40x current multiplication, and 1.5 millimeter thickness that competitors cannot match due to mechanical and thermal limitations in stacked-package approaches. This technological moat is reinforced by management’s emphasis on being "very selective" with new customer engagements, indicating pricing power and the ability to prioritize strategic, long-term relationships over volume, which supports sustainable margin expansion beyond the guided 20% effective tax rate normalization. The company’s backlog surged 70% sequentially to $300.6 million with a book-to-bill ratio above 2.0, signaling demand that far exceeds current capacity and creating a self-reinforcing cycle where strong bookings fund further capacity expansion without dilutive financing, while the one-year backlog recognition policy ensures predictable revenue conversion over the next twelve months. Management’s strategy to expand Fab One capacity from a $1 billion to at least $1.5 billion annual revenue run rate through process improvements—such as reducing cycle time on historically limiting steps and outsourcing non-critical manufacturing to interim facilities—provides near-term elasticity that delays the need for costly greenfield construction, thereby preserving capital and accelerating time-to-revenue for expanded output. The conservative licensing assumption in full-year guidance—excluding new IP deals until the second ITC case concludes in 2027—means any settlement or licensing revenue from ongoing patent enforcement actions would represent pure upside, especially given the near-100% margin profile of licensing income and Vicor’s confidence in becoming a licensor to OEMs and hyperscalers as the industry seeks protection for its power system technology.

▼ Bear case

Vicor Corporation faces significant execution risk in scaling its capacity expansion plan, as management remains vague on timelines for achieving the $1.5 billion Fab One capacity target, refusing to commit to whether this will be reached in 2026 or delayed into 2027 or beyond, which introduces uncertainty into revenue guidance and suggests that process improvements may not yield the expected elasticity, potentially leaving the company unable to meet surging demand from AI and hyperscaler customers despite strong bookings. The company’s heavy reliance on a single lead customer in high-performance computing creates concentration risk, as Vicor refuses to disclose what percentage of its $300.6 million backlog or revenue is attributable to this entity, making it difficult to assess vulnerability to a slowdown in that customer’s wafer-scale engine ramp or a shift toward internal power solutions, especially given the competitive landscape where rivals are advancing in CoWoS and alternative architectures. Inventory levels rose 3.8% sequentially to $94.8 million with annualized inventory turns of only 2.1, indicating potential overproduction or slowing demand conversion, which contradicts the narrative of unrelenting capacity constraints and raises concerns about obsolescence risk for Brick Products as management acknowledges their gradual relevance decline, yet continues to invest in capacity expansion without clear divestment plans for legacy lines. Gross margin declined 20 basis points sequentially to 55.2% despite year-over-year improvement, signaling that sequential margin expansion is not guaranteed and could be pressured by rising operating expenses—including higher IP-related legal costs—and the dilutive effect of equity-based compensation, which totaled $3.9 million in the quarter and is spread across cost of goods, SG&A, and R&D, undermining profitability even as revenue grows. The effective tax rate benefit of minus 1.3% in Q1 was explicitly labeled a one-time discrete item from stock option exercises, with management guiding investors to expect a normalized rate near 20% going forward, removing a tailwind that boosted net income and EPS in the quarter and making future earnings comparisons less favorable unless pre-tax income growth accelerates disproportionately.

Vicor Corporation faces significant execution risk in scaling its capacity expansion plan, as management remains vague on timelines for achieving the $1.5 billion Fab One capacity target, refusing to commit to whether this will be reached in 2026 or delayed into 2027 or beyond, which introduces uncertainty into revenue guidance and suggests that process improvements may not yield the expected elasticity, potentially leaving the company unable to meet surging demand from AI and hyperscaler customers despite strong bookings. The company’s heavy reliance on a single lead customer in high-performance computing creates concentration risk, as Vicor refuses to disclose what percentage of its $300.6 million backlog or revenue is attributable to this entity, making it difficult to assess vulnerability to a slowdown in that customer’s wafer-scale engine ramp or a shift toward internal power solutions, especially given the competitive landscape where rivals are advancing in CoWoS and alternative architectures. Inventory levels rose 3.8% sequentially to $94.8 million with annualized inventory turns of only 2.1, indicating potential overproduction or slowing demand conversion, which contradicts the narrative of unrelenting capacity constraints and raises concerns about obsolescence risk for Brick Products as management acknowledges their gradual relevance decline, yet continues to invest in capacity expansion without clear divestment plans for legacy lines. Gross margin declined 20 basis points sequentially to 55.2% despite year-over-year improvement, signaling that sequential margin expansion is not guaranteed and could be pressured by rising operating expenses—including higher IP-related legal costs—and the dilutive effect of equity-based compensation, which totaled $3.9 million in the quarter and is spread across cost of goods, SG&A, and R&D, undermining profitability even as revenue grows. The effective tax rate benefit of minus 1.3% in Q1 was explicitly labeled a one-time discrete item from stock option exercises, with management guiding investors to expect a normalized rate near 20% going forward, removing a tailwind that boosted net income and EPS in the quarter and making future earnings comparisons less favorable unless pre-tax income growth accelerates disproportionately.

Geographical Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Electrical Equipment

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	APH	Amphenol Corp /De/	primary	200.90 Bn	38.73	6.92	18.81 Bn
2	ETN	Eaton Corp plc	primary	161.94 Bn	42.23	5.39	22.70 Bn
3	VRT	Vertiv Holdings Co	primary	103.13 Bn	59.54	8.98	2.94 Bn
4	TEL	TE Connectivity plc	primary	59.70 Bn	19.34	3.09	5.63 Bn
5	NVT	nVent Electric plc	primary	25.98 Bn	43.42	5.37	1.51 Bn
6	HUBB	Hubbell Inc	primary	24.15 Bn	26.63	3.88	5.37 Bn
7	AEIS	Advanced Energy Industries Inc	primary	11.25 Bn	43.66	5.52	1.26 Bn
8	APTV	Aptiv PLC	primary	9.48 Bn	33.86	0.51	5.38 Bn

Vicor VICR

About

Investment Thesis

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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