Why Vicor Stock Was Crushing it This Week
Key Points
It nearly doubled its estimate for sequential revenue growth.
This is due to royalties derived from a non-exclusive license.
- 10 stocks we like better than Vicor ›
Power components and systems specialist Vicor's (NASDAQ: VICR) stock was loaded with energy over the past few trading days. According to data compiled by S&P Global Market Intelligence, the company's equity was up by almost 24% week to date, as of Friday morning before market open. A guidance revision played a major role in the share price improvement.
Doubling down
On Monday, Vicor announced that it was lifting its forecast for third-quarter revenue growth. The company's top line is now anticipated to expand by over 20% sequentially during the period, well above the previous guidance of almost 10%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Vicor added that this is due to royalties from a non-exclusive license the company granted for its vertical power delivery (VPD) technology. It did not specify the amount involved. The company said that four "leading" businesses have secured such licenses.
None of these counterparties were identified, but they were described as being original equipment manufacturers (OEMs) and hyperscalers.
A stock with impressive power
As a supplier of equipment used in artificial intelligence (AI) deployments, Vicor is in the midst of a frenzied build-out of the hot technology of our age. The company's recent performance reflects this; it posted impressive year-over-year growth in both its first and second quarters of this year while convincingly beating analyst estimates.
That raised guidance should give all Vicor investors a shot of confidence that the company is continuing to speed down the right track -- particularly given that its growth is boosted by extremely high-margin licensing royalty revenue. The stock looks very much like a buy these days.
Should you buy stock in Vicor right now?
Before you buy stock in Vicor, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vicor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,657!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 25, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
