Vicor Q3 revenue jumps 78.5% year over year on royalty boost, strong demand

Overview

• Modular power components maker's Q3 revenue rose 78.5% yr/yr and 37.5% sequentially

• Q3 net income and EPS increased sharply yr/yr

Outlook

• Vicor expects to expand capacity with two new sites to meet rising demand

• Company anticipates broader adoption of 2nd GEN VPD modules by OEMs and hyperscalers

• Company sees increased licensing interest due to ITC investigation into VPD patent infringement

Result Drivers

• ROYALTY REVENUE GROWTH - Co reported significant increase in royalty revenue, contributing to overall revenue growth

• MARGIN EXPANSION - Higher gross margin contributed to improved profitability

• BACKLOG INCREASE - Co backlog rose both sequentially and yr/yr, indicating strong demand

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Vicor Corporation is $375.00, about 96.7% above its October 19 closing price of $190.68

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 85 three months ago

Reuters Recommended Reads

• Oct 19 - AI chip startup Tenstorrent more than doubles its valuation to $6.2 billion in funding round

• Oct 19 - AI stocks bounce back after bruising selloff, CoreWeave gets Goldman upgrade

• Oct 19 - Amazon says its AI chips will work with popular coding language, challenging Nvidia

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)