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

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VICR

Vicor

(NASDAQ:VICR)

Rating:77Outperform
Price Target:
$53.00
▲(2.12% Upside)
Vicor's overall stock score reflects strong financial stability and a positive earnings outlook, particularly due to a significant revenue boost from a patent settlement. However, high valuation metrics and technical weaknesses, along with challenges in the China market, temper the overall positive aspects.
Positive Factors
Patent Settlement
Received a $45MM patent infringement settlement payment from Delta, representing a substantial return on legal expenses.
Royalty Revenue
The company expects to generate over $200 million in royalty/licensing related revenue at an 85% gross margin.
Negative Factors
B2B Orders
B2B orders fell due to Chinese customers pushing out and canceling orders.
Licensing Revenue
Near-term licensing revenue visibility is challenged as Vicor navigates the transition to a new generation of unlicensed products at a key OEM licensee.
Tariffs
Tariffs represent 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, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also provides custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, industrial automation and equipment, instrumentation, test equipment, solid state lighting, telecommunications and networking infrastructure, and vehicles and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.
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: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant revenue growth, successful litigation settlements, and advancements in product development. However, challenges such as tariff impacts, decreased book-to-bill ratio, and increased operating expenses present hurdles. The overall sentiment is cautiously optimistic with substantial achievements outweighing the challenges.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Vicor recorded revenue of $141 million in Q2, up 50.1% sequentially from Q1 and 64.3% year-over-year.
Patent Litigation Settlement
A successful patent litigation settlement contributed to a significant increase in gross margin by 1,810 basis points compared to the prior quarter.
Cash Flow Improvement
Operating cash flow totaled $55.2 million for the quarter, with cash and cash equivalents increasing by $42.4 million sequentially.
Advanced Product Development
Introduction of next-generation products and Gen 5 vertical power delivery solutions, with significant advances in power and current density.
Automotive Market Progress
Successful audits with European and ASEAN OEMs indicate growth potential in the automotive market, particularly for 48-volt zonal architectures.
Negative Updates
Decreased Book-to-Bill Ratio
The book-to-bill ratio was below 1 due to order cancellations from customers in China and hesitancy around tariffs.
Challenges with Tariffs
Order cancellations and hesitancy in placing orders due to a 10% tariff surcharge impacted business, particularly in China.
Inventory and Export Decline
Inventories decreased by 3.1% sequentially, and exports as a percentage of total revenue declined to 51.9% from 60.8% in the prior quarter.
High Operating Expenses
Operating expenses increased by 5% sequentially, primarily due to $5.1 million in incentive legal fees associated with the patent litigation settlement.
Company Guidance
During Vicor's second quarter earnings call, CFO Jim Schmidt reported that the company's total revenues reached $141 million, marking a 50.1% increase from the first quarter of 2025 and a 64.3% increase from the same period in 2024. Advanced Products revenue saw a slight sequential rise of 1.2% to $60.6 million, while Brick Products revenue grew by 4% to $35.5 million. The gross profit margin for Q2 was 65.3%, supported by a patent litigation settlement. Operating expenses rose by 5% to $46.7 million, driven primarily by $5.1 million in incentive legal fees related to the settlement. Net income for the quarter was reported at $41.2 million, with a GAAP diluted income per share of $0.91. Cash and cash equivalents increased by $42.4 million to a total of $338.5 million despite $17.5 million in share repurchases. The quarter's book-to-bill ratio was below 1, resulting in a 9.6% decrease in the 1-year backlog, which closed at $155.2 million. Looking ahead, the company did not provide specific quarterly guidance due to uncertainties and a wide range of potential outcomes, although Schmidt expressed confidence in achieving a record year in 2025.

Vicor Financial Statement Overview

Summary
Vicor's financial performance is stable with strong profitability margins and an excellent balance sheet. Despite a concerning decline in revenue growth, the company maintains strong cash flow management and minimal leverage, indicating financial stability.
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 Revenue359.06M405.06M399.08M359.36M296.58M
Gross Profit184.00M204.93M180.56M178.20M131.45M
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
Positive
Last Price51.90
Price Trends
50DMA
47.37
Positive
100DMA
45.91
Positive
200DMA
49.26
Positive
Market Momentum
MACD
1.21
Negative
RSI
57.19
Neutral
STOCH
72.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICR, the sentiment is Positive. The current price of 51.9 is above the 20-day moving average (MA) of 48.77, above the 50-day MA of 47.37, and above the 200-day MA of 49.26, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 72.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$4.64B51.885.89%14.24%424.78%
77
Outperform
$2.27B34.8011.44%2.46%572.04%
73
Outperform
$4.66B42.183.78%1.49%-7.23%1278.91%
72
Outperform
$3.91B26.7716.49%11.33%18.47%
69
Neutral
$1.44B38.303.49%1.74%-5.95%-43.46%
62
Neutral
$1.40B72.21-5.25%-7.61%-212.91%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VICR
Vicor
51.90
16.79
47.82%
BHE
Benchmark Electronics
40.25
1.65
4.27%
OSIS
OSI Systems
235.71
95.95
68.65%
ROG
Rogers
79.73
-18.85
-19.12%
ST
Sensata
32.24
-2.38
-6.87%
TTMI
TTM Technologies
46.07
28.91
168.47%

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 26, 2025