Vicor Shares Surge on AI Power Demand and Licensing Prospects

Vicor US9258151029

Vicor Corporation's stock experienced a significant rally on Tuesday, driven by mounting optimism regarding its role in AI power electronics and the expansion of its intellectual property licensing operations. The equity closed at $161.90 after climbing 8.02% intraday to reach a high of $162.08. Market participants are now evaluating whether the upcoming launch of its next-generation technology can sustain this positive momentum.

The surge is primarily attributed to Vicor's specialized technology in "last-inch" power delivery, converting 48 volts to sub-1 volt near high-performance processors. This architecture is critical for advanced artificial intelligence systems, as it minimizes power conversion losses. The company has targeted the first quarter of 2026 for commencing volume production of its Generation-5 solution, which is designed to meet these escalating power requirements and is viewed as a major future revenue driver.

Concurrently, the company is advancing its high-margin IP licensing business. Following a Limited Exclusion Order from the U.S. International Trade Commission (ITC) in 2025, management has reported new licensing agreements and one-time payments. The company estimates these could contribute approximately $300 million in total by 2026. Furthermore, leadership has set a long-term goal to achieve an annual IP licensing run-rate of $200 million between 2027 and 2028.

Financial Performance and Market Sentiment

Vicor's most recent quarterly report, released on October 21, 2025, substantially exceeded analyst forecasts. For Q3 2025, the company posted earnings per share of $0.63 against a consensus estimate of $0.20, while revenue reached $110.42 million compared to the projected $95.40 million. This represented a year-over-year growth rate of 18.5%.

This performance has drawn increased attention from research firms. In mid-December 2025, Roth Capital initiated coverage with a "Buy" rating and a $115 price target, citing Vicor's strategic position in power architecture for AI platforms.

Recent insider transactions included planned sales under Rule 10b5-1 programs. A Vice President exercised and sold options worth roughly $499,000 in late October 2025, and a Director sold 400 shares on January 5, 2026.

Forward-Looking Events

The immediate focus for investors centers on two key developments: the ramp-up of Generation-5 production and the progression of licensing revenue. Successful execution on these fronts is expected to support future sales growth. The next significant milestone will be the quarterly earnings announcement, anticipated around February 19, 2026, for which the consensus EPS estimate stands at $0.38.