MACOM's Earnings Explosion Raises a Big Question

Vicor Corporation granted a non-exclusive license to a leading AI original equipment manufacturer for its patented Vertical Power Delivery technology, allowing the OEM to source VPD modules from both Vicor and unlicensed suppliers. The deal touches Vicor's key near-term catalyst of IP monetization while highlighting its dependence on licensing and enforcement outcomes. The licensing approach, combined with Vicor's patented VPD architecture that tackles the last inch problem in powering high-performance AI processors, could materially influence how hyperscalers structure their power-delivery supply chains. Vicor's narrative projects $1.4 billion in revenue and $453.8 million in earnings by 2029, with a $386.25 fair value implying 73% upside, while the most bullish analysts had already counted on roughly 48.7% annual revenue growth and earnings near US$486.1 million by 2029. The company's purchase of large sites in Merrimack and Hooksett to build ChiP Fab 2 and Fab 3 ties closely to the VPD deal, as expanded U.S. manufacturing could support module demand and supply chain redundancy even as underutilization risk and fixed cost pressure remain central issues.

Analog Devices reported third-quarter fiscal 2026 non-GAAP earnings of $3.45 per share, beating the Zacks Consensus Estimate by 3.6% and up from $2.05 per share a year earlier, while revenues of $4.02 billion surpassed the consensus by 2.5% and rose 40% from the year-ago quarter's $2.88 billion. Within that total, Industrial contributed $1.97 billion, or 49% of revenues, up 53% year over year; Automotive brought in $998.2 million, or 25%, up 16%; Communications generated $654.5 million, or 16%, up 84%; and Consumer added $397.2 million, or 10%, up 6%. The adjusted gross margin expanded 330 basis points to 72.5% and the adjusted operating margin reached 50%, up 780 basis points year over year. For the fourth quarter of fiscal 2026, management guided revenues to $4.3 billion, plus or minus $100 million, with adjusted earnings of $3.86 per share, plus or minus $0.15, and an adjusted operating margin of about 52%. The company returned $1.7 billion to shareholders in the quarter, comprising $535 million in dividends and $1.16 billion in share repurchases, and held $2.17 billion in cash and cash equivalents as of Aug. 1, 2026.

Subaru has entered a strategic collaboration with onsemi to evaluate its Embedded Power Platform, a step toward integrating next-generation power architectures into future electric vehicles. Under the partnership, Subaru gains early access to engineering samples and technical expertise as it assesses whether onsemi's power semiconductor integration can deliver scalable, efficient solutions for vehicle electrification. The two companies said the work will explore how a more integrated power system design can improve vehicle performance, efficiency and design flexibility as automakers expand their electrified lineups. The collaboration was announced by onsemi on GlobeNewswire.