Vicor: The AI Growth Is Just Beginning

Summary Vicor is rated 'Buy' with a $846/share 2033 target, reflecting confidence in regaining AI power module leadership. VICR's advanced Vertical Power Delivery (VPD) technology offers significant energy savings and is architecturally aligned with next-gen AI data center needs. Early innings of its VPD potential into copackaged optics. It will be a critical catalyst as it aims to nearly 5x its revenue of $470 million. Despite elevated near-term valuation metrics, a 26% revenue CAGR to $2.3B by 2033 underpins the bullish thesis. Phuchit/iStock via Getty Images Investment Thesis Despite a >300% return in the last year, I believe that Vicor ( VICR ) can still have plenty of upside if it can re-emerge as the leader of power modules for the AI This article was written by Data Maverick 113 Followers Follow I write about high growth companies disrupting their industry with technology. I have over 10 years of Operations leadership experience in High Growth Companies, which gives me a pragmatic approach to investing. My focus in writing is to share my research as I look for underfollowed companies in transformative industries. For a previous track record, I have returned 109% since January 2023 when I started using my investing framework to evaluate potential holdings. My 5-point framework consists of evaluating leadership, evaluating valuation (looking at a 5 year timeframe), double-digit revenue growth with margin expansion, a massive total addressable market, and a secular tailwind that drives growth. Some of my biggest winners have been MercadoLibre (MELI), dLocal (DLO), and Brookfield Renewable Corporation (BEPC) who have passed my criteria. I am hoping to discover more potential disruptors in the Small Cap and Micro Cap universe through my analyses. My goal for being a Seeking Alpha Contributor is to share my research in undercovered companies with easy to understand bull (or bear) theses. It will consist of a blend of financial-based evaluation of fundementals combined with narrative evaluation of industry trends. I focus on long-term based trading and not short-term narrative or daytrades. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VICR over the next 72 hours. 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.