Vicor

VICR

Market cap $15.3B

I am upgrading Vicor to Strong Buy after a rare mid-quarter guidance raise confirmed the IP licensing thesis from my prior coverage. Vicor lifted Q2 revenue guidance 12.7% to $142M, driven by fab product sales and a new all-inclusive OEM license at near-100% margin.

Power chip stocks rallied on Tuesday after Vicor Corporation (VICR) raised its second-quarter revenue guidance, signaling continued strength in demand tied to artificial intelligence infrastructure and data center power systems. Vicor increased its second-quarter revenue forecast to $142 million from a prior outlook of $126 million.

Vicor's raised guidance boosted AI infrastructure stocks, including Navitas. Navitas is pivoting toward high-power AI data center applications.

Vicor unexpectedly raises its second-quarter revenue guidance in yet another positive signal for the power chip industry.

Vicor is transitioning from a power-module manufacturer to an IP-licensing compounder with a high-margin fab, right at the center of the AI infrastructure buildout bottleneck. VICR's licensing segment targets a 50% CAGR at near-100% gross margin, enforced by ITC exclusion orders, and is rapidly transforming the company's valuation profile. Management's FY26 revenue guide of ~$570M excludes new licensing deals; capacity expansion and margin leverage are set to drive EPS and multiple expansion.

Vicor (VICR) is experiencing unprecedented demand for its AI power converters, driven by lead customer Cerebras and upcoming hyperscaler engagements. Bookings surged to a record $237M in Q1 with a book-to-bill ratio above 2:1; capacity expansion of 350% to $3.5B is underway. Royalty income is expected to approach 50% of product revenue, with a second-source licensing agreement anticipated to accelerate margin expansion.

Micron stands out in a profitability-driven market shift, boasting a 41.5% net margin and massive share gains as investors hunt for strong earnings performers.

Vicor beat Wall Street's sales and earnings targets for the first quarter. The company returned to issuing detailed forward guidance.

Micron Technology stands out with a 41.5% net margin, joining Vicor as a top profitable pick after both stocks delivered massive gains over the past year.

Navitas Semiconductor stock and these others are gaining as investors bet power chips will benefit from artificial intelligence.