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Vicor Corp (VICR)
NASDAQ:VICR
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Vicor (VICR) AI Stock Analysis

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VI

Vicor

(NASDAQ:VICR)

Rating:73Outperform
Price Target:
$50.00
▲(10.62%Upside)
Vicor receives an overall score of 73. The company's strong financial stability and cash flow management are key strengths. However, mixed technical signals and high valuation metrics present potential concerns. The earnings call sentiment is balanced with both growth opportunities and challenges, including declining revenue and margin pressures.
Positive Factors
New Licensing Agreements
Royalty estimates increased as the company announced a hyperscaler as a second licensee, and also has received orders for NBM product from this customer.
Revenue Growth
The company expects to generate over $200 million in royalty/licensing related revenue at an 85% gross margin, representing a substantial return on investment.
Negative Factors
Product Delays
The timeline for Gen 5 sample shipments to Vicor's lead customer has slipped from March to May, affecting bullish scenarios.
Tariffs Impact
A 10% surcharge on all shipments is set to commence in response to tariffs, representing increased risk to the goal of achieving a record revenue year.

Vicor (VICR) vs. SPDR S&P 500 ETF (SPY)

Vicor Business Overview & Revenue Model

Company DescriptionVicor Corporation (VICR) is a leading technology company specializing in the design, development, and manufacture of innovative power components and systems. Headquartered in Andover, Massachusetts, Vicor operates in the electronics and electrical equipment sector, providing high-performance power conversion solutions that are critical for various applications, including data centers, telecommunications, industrial automation, and automotive industries. The company's core products include power modules, power systems, and custom power solutions that enable the efficient transformation and management of power in electronic devices and systems.
How the Company Makes MoneyVicor Corporation generates revenue primarily through the sale of its comprehensive range of power components and systems. The company's revenue model is centered around the production and distribution of power conversion products, including proprietary power modules and custom power systems designed to meet specific customer requirements. Key revenue streams include direct sales to end-users, as well as sales through distributors and resellers in various global markets. Vicor's earnings are significantly influenced by its ability to innovate and deliver high-quality, reliable power solutions that meet the evolving needs of industries such as data centers, telecommunications, and automotive. Strategic partnerships with leading technology companies and OEMs further bolster its revenue, enabling Vicor to expand its market reach and enhance its product offerings.

Vicor Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Vicor's earnings call for Q2 2025 presented a generally positive outlook with significant revenue growth driven by a patent litigation settlement and new product developments. However, challenges in the China market and a decline in the book-to-bill ratio due to tariff hesitancy and cancellations were notable concerns.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Vicor recorded product revenues, licensing income, and a patent litigation settlement for the second quarter of $141 million, up 50.1% sequentially from Q1 2025 and up 64.3% from Q2 2024.
Strong Gross Margin Improvement
The consolidated gross profit margin increased to 65.3%, a 1,810 basis point increase compared to the prior quarter.
Patent Litigation Settlement
Vicor successfully settled a patent litigation case, contributing significantly to the financial results, although specifics of the settlement were not disclosed.
Cash Flow and Balance Sheet Strength
Operating cash flow totaled $55.2 million for the quarter, and cash and cash equivalents increased by $42.4 million sequentially.
New Product Developments
Vicor announced advancements in next-generation products, including high-density power modules for AI and automotive markets, with significant customer engagements expected.
Negative Updates
Decline in Book-to-Bill Ratio
The book-to-bill ratio was below 1, with a 9.6% decrease in the backlog from the prior quarter, primarily due to order cancellations from customers in China and tariff-related hesitancy.
Challenges in China Market
Order cancellations and hesitancy due to tariffs affected the industrial market in China, impacting overall bookings.
Increased Operating Expenses
Total operating expense increased 5% sequentially to $46.7 million, primarily due to $5.1 million of incentive legal fees associated with the patent litigation settlement.
Company Guidance
In the call, Vicor Corporation provided guidance indicating strong financial performance with product revenues, licensing income, and a patent litigation settlement totaling $141 million for Q2 2025, marking a 50.1% sequential increase from Q1 2025 and a 64.3% year-over-year increase from Q2 2024. Advanced Products revenue grew by 1.2% to $60.6 million, and Brick Products revenue rose by 4% to $35.5 million sequentially. Shipments to stocking distributors saw an 18.9% sequential increase but a 14.3% year-over-year decrease. The gross margin was significantly boosted to 65.3%, up by 1,810 basis points from the previous quarter, mainly due to a patent litigation settlement. Total operating expenses increased by 5% from Q1 2025 to $46.7 million, largely due to $5.1 million in incentive legal fees. Net income was reported at $41.2 million, with a GAAP diluted income per share of $0.91. Cash and cash equivalents reached $338.5 million, increasing by $42.4 million, despite $17.5 million in share repurchases. The Q2 book-to-bill ratio fell below 1 due to order cancellations in China and tariff-related hesitancy, while the one-year backlog decreased by 9.6% to $155.2 million. However, the company refrained from providing quarterly guidance due to uncertainties surrounding tariffs and licensing opportunities.

Vicor Financial Statement Overview

Summary
Vicor shows strong profitability margins and cash flow despite declining revenue. The balance sheet remains robust with minimal leverage, and operational efficiency could improve further.
Income Statement
75
Positive
Vicor's income statement displays solid profitability with a gross profit margin of 49.6% and a net profit margin of 8.6% for the TTM. However, the revenue growth rate is concerning, declining from $405M to $283M in the TTM period. EBIT and EBITDA margins are modest at 5.1% and 10.2%, reflecting operational efficiency challenges.
Balance Sheet
85
Very Positive
The balance sheet is robust, with a low debt-to-equity ratio of 0.01, indicating minimal leverage. Return on Equity (ROE) is healthy at 4.2% in the TTM, although it has declined from previous years. The equity ratio is strong at 87.3%, suggesting high financial stability.
Cash Flow
80
Positive
Vicor demonstrates strong cash flow management, with a significant free cash flow increase to $47.5M in the TTM. The operating cash flow to net income ratio is 2.81, indicating effective cash generation from operations, but the free cash flow to net income ratio suggests potential room for improvement.
BreakdownJun 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue169.73K405.06M399.08M359.36M296.58M
Gross Profit87.89K204.93M180.56M178.20M131.45M
EBITDA-15.90K68.60M40.20M55.60M17.37M
Net Income15.67K53.59M25.45M56.63M17.91M
Balance Sheet
Total Assets641.12M594.89M536.90M477.20M396.24M
Cash, Cash Equivalents and Short-Term Investments277.27M242.22M190.61M227.63M211.91M
Total Debt7.34M8.23M8.46M4.78M4.60M
Total Liabilities70.83M53.78M72.56M53.30M45.08M
Stockholders Equity570.07M540.87M464.09M423.60M350.82M
Cash Flow
Free Cash Flow27.24M40.49M-41.03M6.68M5.89M
Operating Cash Flow50.84M73.94M22.94M54.44M34.55M
Investing Cash Flow-23.60M-33.45M-18.97M-43.66M-78.62M
Financing Cash Flow7.99M11.19M4.44M10.09M121.04M

Vicor Technical Analysis

Technical Analysis Sentiment
Negative
Last Price45.20
Price Trends
50DMA
44.80
Positive
100DMA
47.29
Negative
200DMA
49.02
Negative
Market Momentum
MACD
0.55
Positive
RSI
45.94
Neutral
STOCH
51.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICR, the sentiment is Negative. The current price of 45.2 is below the 20-day moving average (MA) of 46.42, above the 50-day MA of 44.80, and below the 200-day MA of 49.02, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 51.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VICR.

Vicor Risk Analysis

Vicor disclosed 17 risk factors in its most recent earnings report. Vicor reported the most risks in the "Tech & Innovation" 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.64B26.4016.73%14.93%12.89%
74
Outperform
$4.58B63.395.02%11.65%
73
Outperform
$2.15B93.5211.44%14.62%572.04%
STST
72
Outperform
$4.61B38.514.20%1.50%-5.61%
BHBHE
69
Neutral
$1.43B27.354.84%1.72%-7.36%-20.46%
63
Neutral
$34.27B4.89-11.70%1.94%5.41%-20.02%
ROROG
61
Neutral
$1.21B71.331.34%-8.06%-75.10%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VICR
Vicor
45.20
7.23
19.04%
BHE
Benchmark Electronics
39.59
-1.01
-2.49%
OSIS
OSI Systems
217.07
69.82
47.42%
ROG
Rogers
67.12
-58.70
-46.65%
ST
Sensata
32.06
-4.60
-12.55%
TTMI
TTM Technologies
45.04
23.44
108.52%

Vicor Corporate Events

Executive/Board ChangesShareholder Meetings
Vicor Elects Eleven Directors at Annual Meeting
Neutral
Jun 23, 2025

The 2025 Annual Meeting of Stockholders for Vicor was held on June 20, 2025, where stockholders voted on a proposal to fix the number of directors at eleven and elect the nominees to serve until the 2026 meeting. All eleven nominees were successfully elected with varying numbers of votes in favor and withheld, with no broker non-votes or abstentions recorded.

The most recent analyst rating on (VICR) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on Vicor stock, see the VICR Stock Forecast page.

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.Date of analysis: Jul 23, 2025