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Vicor
(NASDAQ:VICR)
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Rating:71Outperform
Price Target:
$215.00
â–²(10.47% Upside)
Action:Reiterated
Date:10/27/26
Overall score reflects strong fundamentals and a very conservative balance sheet, reinforced by a notably positive earnings call and upbeat near-term revenue/royalty outlook. Offsetting these strengths are weak current technicals (below major moving averages with negative MACD) and a demanding valuation (P/E ~49.6), while cash flow volatility (sharp FCF decline vs. prior year) remains the key fundamental watch item.
Positive Factors
Revenue and Margin Growth
The sharp revenue increase and elevated gross margin indicate strong product adoption and favorable mix, particularly in advanced offerings. If demand continues across compute and other target markets, operating leverage and scale could support durable earnings expansion over the next several quarters.
Negative Factors
Capacity Constraints
Near-term manufacturing constraints could prevent Vicor from converting strong customer interest and bookings into shipments, limiting revenue capture while demand is available. Delayed capacity growth may also restrict engagement with hyperscalers and OEMs until Fab 2 begins adding production capability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Growth
The sharp revenue increase and elevated gross margin indicate strong product adoption and favorable mix, particularly in advanced offerings. If demand continues across compute and other target markets, operating leverage and scale could support durable earnings expansion over the next several quarters.
Read all positive factors
Vicor (VICR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.78B
Dividend Yield1.26%
Average Volume (3M)1.15M
Price to Earnings (P/E)53.9
Beta (1Y)2.50
Revenue Growth41.38%
EPS Growth115.22%
CountryUS
Employees1,092
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)3.93
Shares Outstanding34,430,880
10 Day Avg. Volume1,439,823
30 Day Avg. Volume1,147,651
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)6.89
Price to Sales (P/S)12.03
P/FCF Ratio41.12
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue23.63
Enterprise Value/Gross Profit39.02
Enterprise Value/Ebitda76.49
Forecast
1Y Price Target
$386.67Price Target Upside98.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.94
Revenue Forecast (FY)$634.40M
Vicor Business Overview & Revenue Model
Company Description
Vicor Corporation, along with its various subsidiaries, specializes in the conceptualization, manufacturing, and global distribution of modular power components and systems. These offerings are engineered to efficiently convert electrical power fo...
How the Company Makes Money
Vicor makes money primarily by selling power conversion and power delivery hardware to original equipment manufacturers (OEMs) and other electronics customers that integrate Vicor components into their end products. The company’s main revenue stre...
Vicor Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with substantial year-over-year and sequential revenue growth, higher gross margin, strong cash generation, increasing bookings, robust AI-related demand, expanding licensing activity, and planned capacity expansion. The main challenges were near-term manufacturing constraints, elevated legal expense, lumpy royalty timing, uncertainty around IVR adoption, and the undetermined timing of Fab 3.Positive Updates
Strong Third-Quarter Revenue Growth
Product and royalty revenue was $197 million, up 37.5% sequentially from $143 million in Q2 2026 and up 78.5% year over year from $110 million in Q3 2025.
Negative Updates
Royalty Revenue Remains Lumpy
Management said a fraction of the 119.1% increase in royalty revenue was attributable to initial payments from a new licensee and was nonrecurring. Although management now views the royalty stream as recurring, it also said licensing income will remain lumpy while the company works with a relatively small subset of hyperscalers and OEMs.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue Growth
Product and royalty revenue was $197 million, up 37.5% sequentially from $143 million in Q2 2026 and up 78.5% year over year from $110 million in Q3 2025.
Read all positive updates
Company Guidance
For Q4, Vicor expects a 10% increase in Q4 product revenue, including another double digit sequential increase in product revenue in its Advanced Products portfolio, or a low double digits increase in product revenue, and at least $43 million in royalty revenue assuming no new license agreements are closed this quarter; royalty revenue could be higher from existing arrangements or new deals. Legal expense is expected to average approximately 20% of royalty revenue in the near term, and further revenue growth will result in further margin expansion. Initial equipment deployment in Fab 2 is expected in Q2 of 27, increasing total manufacturing, while Fab 2 and Fab 3 could support even more than a 5x expansion; Fab 3 timing remains to be determined, and short-term capacity expansion can occur on a time scale of 5-6 months.Vicor Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 560.70M | 407.70M | 359.06M | 405.06M | 399.08M | 359.36M |
| Gross Profit | 339.59M | 214.43M | 184.00M | 204.93M | 180.56M | 178.20M |
| EBITDA | 173.22M | 115.36M | 36.82M | 77.48M | 47.48M | 68.51M |
| Net Income | 180.29M | 118.56M | 6.13M | 53.59M | 25.45M | 56.63M |
Balance Sheet | ||||||
| Total Assets | 981.62M | 785.83M | 641.12M | 594.89M | 536.90M | 477.20M |
| Cash, Cash Equivalents and Short-Term Investments | 513.14M | 402.81M | 277.27M | 242.22M | 190.61M | 227.63M |
| Total Debt | 7.16M | 12.78M | 7.34M | 8.23M | 8.46M | 4.78M |
| Total Liabilities | 75.05M | 74.02M | 70.83M | 53.78M | 72.56M | 53.30M |
| Stockholders Equity | 906.28M | 711.56M | 570.07M | 540.87M | 464.09M | 423.60M |
Cash Flow | ||||||
| Free Cash Flow | 50.83M | 119.23M | 27.24M | 41.08M | -41.03M | 7.12M |
| Operating Cash Flow | 96.07M | 139.55M | 50.84M | 74.53M | 22.94M | 54.88M |
| Investing Cash Flow | -22.65M | -20.32M | -23.60M | -33.45M | -18.97M | -43.66M |
| Financing Cash Flow | 77.45M | 6.32M | 7.99M | 10.60M | 4.44M | 10.09M |
Vicor Technical Analysis
Neutral
194.62
Price Trends
225.70
Negative
245.14
Negative
226.41
Negative
Market Momentum
-14.44
Positive
45.40
Neutral
34.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICR, the sentiment is Neutral. The current price of 194.62 is below the 20-day moving average (MA) of 243.85, below the 50-day MA of 225.70, and below the 200-day MA of 226.41, indicating a bearish trend. The MACD of -14.44 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 34.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VICR.
Vicor Risk Analysis
Vicor disclosed 18 risk factors in its most recent earnings report. Vicor reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vicor Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.78B | 53.94 | 22.49% | 1.26% | 41.38% | 115.22% | |
70 Outperform | $6.16B | 16.86 | 12.57% | 1.13% | 0.32% | -18.53% | |
67 Neutral | $3.13B | 54.36 | 10.97% | 0.13% | 25.26% | -4.61% | |
65 Neutral | $9.73B | -982.05 | -0.32% | 0.80% | 15.44% | -108.08% | |
63 Neutral | $9.33B | 40.29 | 15.93% | 0.17% | 24.58% | 159.06% | |
63 Neutral | $14.35B | 32.44 | 15.83% | 0.46% | 16.23% | 65.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
VICR
Vicor
216.65
125.48
137.63%
AEIS
Advanced Energy
242.32
34.58
16.64%
BELFB
Bel Fuse Inc
227.77
75.50
49.58%
LFUS
Littelfuse
387.15
136.92
54.72%
MKSI
MKS
218.24
77.43
54.99%
ST
Sensata
40.88
8.64
26.81%
Vicor Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Vicor updates bylaws to clarify director removal
Positive
Sep 10, 2026
Effective September 9, 2026, Vicor Corporation’s Board of Directors amended the company’s By-laws to clarify how directors may be removed under Article II, Section 6. This governance update refines the rules around board composition an...
Business Operations and StrategyStock Buyback
Vicor Announces New $150 Million Share Repurchase Plan
Positive
Aug 27, 2026
On August 25, 2026, Vicor Corporation announced that its Board of Directors approved a new share repurchase authorization of up to $150,000,000 of common stock, replacing the prior program. The authorization has no expiration date, can be suspende...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.