Vicor Corporation: The Market Underappreciates The Upside It Has

Summary Vicor Corporation (VICR) is rated a Strong Buy due to surging demand for its high-efficiency power modules in AI data centers. Recent AI licensing deals and capacity expansions are driving margin improvement, with gross margins rising to 58% and royalty revenues up 122% YoY. VICR’s second-generation vertical power delivery solution offers market-leading current density, enabling substantial energy and cost savings for data center operators. Management projects the revenue run-rate could reach $4.5 billion by 2027, supported by new facilities and accelerating adoption in a rapidly growing AI rack market. PhonlamaiPhoto/iStock via Getty Images The Power Company Taking The Market By Storm I don’t really think people are grasping what really happened this last week with Vicor Corporation ( VICR ). The company is a power modules manufacturer and complete power systems maker. This converts high-voltage This article was written by Andres Veurink 2.51K Followers Follow With over a decade of institutional investment experience, I specialize in identifying growth opportunities at the intersection of technological disruption and macro-thematic energy shifts. I've spent the majority of that time at a hedge fund here in Rotterdam, working my way up as an analyst. My work reflects rigorous standards as I myself have a very high standard as to what I invest my money in. My primary coverage spans the technology sector—with a focus on SaaS and cloud infrastructure—and the energy and minerals markets. I tend to be very data and trend driven in my work, analyzing unit economics and supply chain gaps among a number of other often overlooked areas in business and industries.I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughts and research is done only by myself. Analyst’s Disclosure: I/we have a beneficial long position in the shares of VICR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.