Vicor Corporation (VICR)
NASDAQIndustrialsHardware, Equipment & PartsSnapshot 2026-09-04
$188.55+5.48%
Close 2026-09-04 · 1-day change
NASDAQIndustrialsHardware, Equipment & PartsSnapshot 2026-09-04
Broken: Primary pillar broken — Revenue growth to sustain near 58% YoY: rev +55.6% vs 58.0%.
Vicor grows revenue fast, about 20% yearly. Profit margins improve steadily. Analysts expect revenue near $596M in 2026. Strong demand from AI data centers supports growth.
The recent 30% stock drop shows risk. Profit gains are slow and operating income progress is weak. High valuation risks a correction if growth slows.
The price is about 24% above our fair value near $208. Analysts expect 58% revenue growth, which is priced in. Our fair value is well below the Street median, reflecting caution on margin and profit progress.
Breaks if: Gross profit falls below $59M in next 4 quarters
Enhance gross profit margins through operational efficiencies and higher capacity utilization.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and IP licensing. The current thesis state is cautious, as recent performance has improved, but the stock is considered expensive relative to peers.
The market appears to be pricing in a durable premium for VICR, suggesting that investors expect continued strong performance. However, the high valuation indicates that any negative news could lead to significant downward pressure.
Fundamentals are likely to remain strong in the near term, given the robust earnings quality and management's focus on growth. However, there is a risk of volatility due to the high valuation and potential sector headwinds.
The long-term thesis hinges on the performance of sector bellwethers like FTV, ESE, and ST. If these companies continue to perform well, it could provide a favorable backdrop for VICR. Conversely, any negative guidance from these peers could impact VICR's momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on VICR. However, cash conversion issues may hinder revenue growth, posing a threat to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 5 of last 5 quarters. Gross margin increased from $62.4M in 2026-Q1 to $83.1M in 2026-Q2, with margin percentage rising from 55.2% to 58.0%. Despite prior year fluctuations due to litigation settlements, management is delivering improved gross margins sequentially.
“Gross margin increased sequentially to $83.1 million for 2026-Q2, compared to $62.4 million for 2026-Q1.”
“Gross margin increased to $62.4 million for 2026-Q1, compared to $44.4 million for 2025-Q1.”
“Gross margin increased to $59.4 million for 2025-Q4, compared to $50.4 million for 2024-Q4.”
“Gross margin increased to $63.5 million for 2025-Q3, compared to $45.7 million for 2024-Q3.”
“Gross margin was $92.1 million for 2025-Q2, including a $45 million patent litigation settlement.”
Breaks if: Operating income fails to exceed $15M in next 4 quarters
Aim to enhance operating income through strategic initiatives and cost management.
Breaks if: YoY revenue growth falls below 40% in FY26
Focus on growing product and royalty revenues driven by rising demand in high-performance compute and other key markets.
Stated as a priority in 5 of last 5 quarters. Revenue grew from $112.97M in 2026-Q1 to $143.35M in 2026-Q2 (27% sequential growth). Backlog increased 26% sequentially to $380M in 2026-Q2. Management consistently emphasizes rising demand and backlog growth, and the financials show delivering revenue growth.
“Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within our first ChiP fab.”
“Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is reflected in a 70% sequential increase in backlog, setting the stage for…”
“Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications, should lead to a record year for Vicor’s product revenues.”
“Licensing revenue reached a record rate in Q3 following the litigation settlement for prior infringement recorded in Q2.”
“Vicor is pursuing additional actions to curtail access to infringing computing systems sourced from infringing contract manufacturers relying on infringing power module makers.”
In the next 1 to 3 years, VICR's performance will depend on its ability to navigate sector challenges while maintaining strong growth. Not investment advice.