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Vicor
(NASDAQ:VICR)
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Rating:71Outperform
Price Target:
$202.00
▼(-4.27% Downside)
Action:Upgraded
Date:07/30/26
The score is driven primarily by strong financial performance (high profitability and growth in TTM plus a very strong, low-debt balance sheet) and a constructive earnings update with improving margins and demand visibility. This is tempered by clearly weak technical trend signals (trading below key moving averages) and a high P/E with no dividend support, which increases downside risk if growth or licensing/capacity execution slips.
Positive Factors
Conservative Balance Sheet
Vicor's exceptionally conservative balance sheet — very low leverage and a large cash base — provides durable financial flexibility to fund capex, support R&D, and absorb cyclicality. This reduces insolvency risk and increases ability to execute multi-year capacity and tech plans.
Negative Factors
Capacity / Second Fab Execution Risk
Management acknowledges the first fab won't support the $2.5B target, requiring a second facility. Site selection, staged construction and large incremental capex create multi-quarter execution and timing risk. Delays or cost overruns could constrain growth and margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Vicor's exceptionally conservative balance sheet — very low leverage and a large cash base — provides durable financial flexibility to fund capex, support R&D, and absorb cyclicality. This reduces insolvency risk and increases ability to execute multi-year capacity and tech plans.
Read all positive factors
Vicor (VICR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.56B
Dividend YieldN/A
Average Volume (3M)905.95K
Price to Earnings (P/E)65.0
Beta (1Y)2.25
Revenue Growth24.95%
EPS Growth120.02%
CountryUS
Employees1,092
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)3.19
Shares Outstanding34,389,015
10 Day Avg. Volume977,500
30 Day Avg. Volume905,954
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$381.67Price Target Upside80.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.29
Revenue Forecast (FY)$599.74M
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 products and related solutions to original equipment manufacturers (OEMs) and other customers that integrate these components into their end systems. Its core revenue stream is product revenu...
Vicor Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial update: strong sequential revenue growth (+26.9%), meaningful advanced-products momentum (+45% sequential), backlog growth (+26%) and improved consolidated gross margin (+280 bps) alongside a strengthened cash position ($453.6M). Management also reported tangible technical progress on second‑generation VPD (baseline ~3 A/mm² with roadmap toward ~5 A/mm²) and upgraded near-term revenue expectations (Q3 +~10%, 2026 >$600M) and reiterated ambitious long-term targets. Offsetting these positives are higher operating/legal expenses, one-time factory relocation costs that pressured product margins, inventory build with low turns (2.1), dependence on licensing timing (royalty recognition volatility and ITC timing), and the need to secure and build a second fab to reach the $2.5B target — all of which introduce execution and timing risk. Overall, the highlights outweigh the lowlights but the path to scale is dependent on licensing cadence and successful capacity expansion.Positive Updates
Strong Sequential Revenue Growth
Total product and royalty revenue of $143.4M in Q2 2026, up 26.9% sequentially from $113.0M in Q1 2026 and up 1.6% year-over-year (Q2 2025 was $141M, which included a $45M patent settlement).
Negative Updates
Operating Expense Increase and Legal Costs
Total operating expense rose 6.1% sequentially to $48.2M in Q2, driven in large part by substantial contingent legal fees paid to law firms partnering on the licensing deal. Equity-based compensation totaled approximately $4.2M across COGS, SG&A, and R&D in the quarter.
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Q2-2026 Updates
Positive
Negative
Strong Sequential Revenue Growth
Total product and royalty revenue of $143.4M in Q2 2026, up 26.9% sequentially from $113.0M in Q1 2026 and up 1.6% year-over-year (Q2 2025 was $141M, which included a $45M patent settlement).
Read all positive updates
Company Guidance
Vicor said it expects nearly a 10% sequential revenue increase in Q3 and over $600 million in 2026 revenue, with plans for double‑digit sequential growth in advanced product revenue and margin expansion as utilization rises; Q2 product and royalty revenue was $143.4M (up 26.9% sequentially from Q1 $113.0M and up 1.6% year‑over‑year from $141M which included a $45M settlement), with advanced products $94.2M (+45% seq) representing 65.7% of revenue and brick products $49.2M (34.3%); royalty income from the new license contributed $15M in Q2 and the deal calls for four $5M quarterly payments in year one and $10M quarterly payments in year two (total $60M), with GAAP recognition of $5M in Q3 and $10M per quarter for the following four quarters; consolidated gross margin was 58% (+280 bps seq), operating expense $48.2M (+6.1% seq), tax benefit ~$10.9M (effective rate ‑27.9%), net income $49.8M and GAAP diluted EPS $1.40 on 47,708,000 diluted shares; balance sheet and working‑capital metrics include cash $453.6M (+$49.4M seq, including a $14.3M CHIPS refund), AR net $78.9M (DSOs 37 days), inventory $104.5M (+10.2% seq, turns 2.1), operating cash flow $34M, CapEx $11.2M, construction‑in‑progress ~$18.2M with ~$23.5M remaining, book‑to‑bill >1 and one‑year backlog $379.7M (+26% seq).Vicor Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 474.01M | 407.70M | 359.06M | 405.06M | 399.08M | 359.36M |
| Gross Profit | 268.42M | 214.43M | 184.00M | 204.93M | 180.56M | 178.20M |
| EBITDA | 127.59M | 115.36M | 36.82M | 77.48M | 47.48M | 68.51M |
| Net Income | 145.27M | 118.56M | 6.13M | 53.59M | 25.45M | 56.63M |
Balance Sheet | ||||||
| Total Assets | 894.16M | 785.83M | 641.12M | 594.89M | 536.90M | 477.20M |
| Cash, Cash Equivalents and Short-Term Investments | 453.58M | 402.81M | 277.27M | 242.22M | 190.61M | 227.63M |
| Total Debt | 7.61M | 12.78M | 7.34M | 8.23M | 8.46M | 4.78M |
| Total Liabilities | 59.57M | 74.02M | 70.83M | 53.78M | 72.56M | 53.30M |
| Stockholders Equity | 834.32M | 711.56M | 570.07M | 540.87M | 464.09M | 423.60M |
Cash Flow | ||||||
| Free Cash Flow | 51.27M | 119.23M | 27.24M | 41.08M | -41.03M | 7.12M |
| Operating Cash Flow | 84.39M | 139.55M | 50.84M | 74.53M | 22.94M | 54.88M |
| Investing Cash Flow | -33.12M | -20.32M | -23.60M | -33.45M | -18.97M | -43.66M |
| Financing Cash Flow | 64.01M | 6.32M | 7.99M | 10.60M | 4.44M | 10.09M |
Vicor Technical Analysis
Neutral
211.01
Price Trends
279.37
Negative
252.23
Negative
189.92
Positive
Market Momentum
-18.86
Negative
43.55
Neutral
77.17
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 211.01 is below the 20-day moving average (MA) of 224.78, below the 50-day MA of 279.37, and above the 200-day MA of 189.92, indicating a neutral trend. The MACD of -18.86 indicates Negative momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 77.17 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.21B | 71.37 | 2.61% | ― | 4.90% | ― | |
71 Outperform | $9.56B | 65.01 | 19.83% | ― | 24.95% | 120.02% | |
69 Neutral | $3.76B | 67.99 | 8.40% | 0.10% | 25.26% | -2.96% | |
67 Neutral | $3.76B | 67.99 | 10.97% | 0.10% | 25.26% | -2.96% | |
62 Neutral | $3.65B | 24.60 | 16.74% | ― | 6.98% | 8.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $2.70B | 35.85 | 17.37% | ― | 11.97% | ― |
* Technology Sector Average
VICR
Vicor
221.20
174.36
372.25%
BELFB
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OSIS
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ROG
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PENG
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58.43
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BELFA
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233.55
117.83
101.83%
Vicor Corporate Events
Executive/Board ChangesShareholder Meetings
Vicor Shareholders Endorse Board, Executive Pay at 2026 Meeting
Positive
Jun 23, 2026
Vicor held its 2026 Annual Meeting of Stockholders on June 19, 2026, where shareholders approved fixing the board size at 11 directors and elected all 11 nominees, including CEO Patrizio Vinciarelli and other incumbent and independent directors, w...
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.