Vicor Corporation

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Vicor Corporation announced on September 11 that it is purchasing a 334,000-square-foot building on 66 acres in Merrimack, New Hampshire, and another 54 acres in Hooksett to support planned ChiP Fab-2 and Fab-3 power-component manufacturing facilities with a combined footprint of nearly one million square feet. Management says the existing 320,000-square-foot Fab-1 in Andover, Massachusetts, is approaching capacity, and cites a one-year lead time to initial Fab-2 deployment. Second-quarter product revenue rose to $112.9 million from $85.7 million a year earlier, and backlog for product shipments scheduled within the following 12 months reached approximately $380 million as of June 30, up 26% sequentially and 145% year over year. Vicor held $453.6 million in cash and equivalents at June 30, with second-quarter operating cash flow of $34.0 million against capital expenditures of $11.2 million. The announcement did not disclose property purchase prices, a complete construction and equipment budget, or firm customer commitments, and it supplied neither a full production ramp schedule nor a Fab-3 start date.

Vicor is riding a wave of strong demand across high-performance computing, automatic test equipment, industrial, and aerospace and defense markets, with its backlog reaching approximately $380 million at the end of the second quarter of 2026, up 26% sequentially and 145% year over year. The company's book-to-bill remained above 1, and management highlighted ATE as a key growth driver, with business from major ATE customers now a large multiple of historical levels due to AI infrastructure buildout. Vicor expects nearly 10% sequential revenue growth in the third quarter and more than $600 million in revenues for 2026, supported by planned double-digit sequential growth in Advanced Products. However, lead times have increased as demand exceeds capacity, prompting some customers to order earlier, and Vicor plans to build a second fab to support future growth. The company faces tough competition from Analog Devices, whose third-quarter fiscal 2026 revenues jumped 40% year over year, and Texas Instruments, whose data-center revenues doubled in the second quarter of 2026, both challenging Vicor's ability to capture rising demand.

Vicor reported second-quarter 2026 earnings of $1.04 per share, beating the Zacks Consensus Estimate by 68% and rising 14.3% year over year. Revenues increased 1.6% year over year to $143.4 million, surpassing the consensus estimate by 3.13%, driven by sequential growth in Advanced Products and higher royalty contributions. Advanced Products revenues jumped 45% sequentially to $94.2 million, accounting for 65.7% of total revenues, while royalty revenues surged to $30.4 million from $10.4 million a year earlier. The company raised its 2026 revenue outlook to more than $600 million and expects third-quarter revenues to increase nearly 10% sequentially. Vicor's shares rose 3.28% on the news and have gained 95.9% year to date.

Vicor has drawn attention after strong AI-focused earnings, raised revenue guidance, and a disclosure that JPMorgan controls a 6.9% stake in the company's common stock. The most followed narrative pegs fair value at $406.25, well above the last close of $230.41, implying the stock is 43.3% undervalued based on growth levers such as Gen 5 vertical power delivery products and 800V-to-48V converters targeting a market expected to exceed $5 billion by 2027. However, Simply Wall St's fair ratio for the P/E suggests a reasonable multiple of 85.7x, leaving only a modest buffer above the current 76.8x P/E, which is roughly double the US Electrical industry average of 38.1x. The share price has returned 97.17% year to date and 376.15% over the past year, despite a recent pullback of 11.45% in a single day and 28.10% over the past month.

Vicor is experiencing strong demand for its high-density power solutions tied to AI infrastructure, leading the company to boost its second-quarter 2026 revenue guidance to US$142 million and report a sharply higher one-year backlog. The company is expanding manufacturing capacity and growing licensing royalties, while investors such as JPMorgan have disclosed meaningful ownership stakes and analysts have reacted positively to the long-term outlook. However, a more than 100 percent year-to-date stock gain, insider selling in the hundreds of millions of US dollars, and questions about valuation highlight a tension between AI-driven growth enthusiasm and concerns about sustainability. Vicor's narrative projects US$1.3 billion in revenue and US$416.1 million in earnings by 2029, requiring 45.7 percent yearly revenue growth and a roughly US$279 million earnings increase from US$136.7 million today. The most optimistic analysts previously expected about US$595 million in revenue and roughly US$149 million in earnings by 2028, a baseline that the current AI-driven backlog surge and capacity expansion plans could stretch further or pull back if execution stumbles.

Vicor CEO Patrizio Vinciarelli sold 700 shares for $211,680 under a Rule 10b5-1 trading plan adopted in February. The sale represents a tiny fraction of his holdings, as he still directly owns over 8.3 million shares. Vicor's first-quarter revenue rose 20% to $113 million, driven by AI accelerator demand, and its one-year backlog jumped 70% to $301 million. Management guided to roughly $570 million in 2026 revenue and is planning a second fab to address capacity constraints.

Vicor Corporation has seen a notable increase in its earnings estimates, with the Zacks Consensus Estimate for the current quarter rising 34.78% over the last 30 days to $0.62 per share, and the full-year estimate increasing 8.3% to $2.94 per share. Two analysts have raised their estimates for both periods, with no negative revisions, reflecting growing optimism about the modular power components company. The stock has gained 11.5% over the past four weeks, and the improving earnings outlook suggests potential for further gains. Vicor currently holds a Zacks Rank #2, or Buy, indicating it may outperform the broader market.