Roth Capital Anticipates Growth, Margin Expansion for Vicor Corp. (VICR) Driven by New Product Rollout, IP Royalty Income

Core Insights - Vicor Corporation is recognized as a leading tech stock, with Roth Capital initiating coverage with a Buy rating and a price target of $115, highlighting its strong position in power architecture for next-gen AI platforms [1] Financial Performance - In Q3 2025, Vicor reported quarterly revenue of $110.4 million, marking an 18.5% year-over-year increase but a 21.7% sequential decline due to a prior one-time $45 million patent settlement benefit [2] - The net income for the quarter was $28.3 million, with a GAAP diluted EPS of $0.63 [2] Product Segments and Growth Drivers - Advanced Products revenue grew 8.2% sequentially to $65.5 million, while Brick Products increased by 26.6% from a base of $44.9 million [3] - The IP licensing division achieved an annual run rate of approximately $90 million, indicating strong growth potential [3] - The company is preparing for a significant production ramp-up of its second-generation vertical power delivery solutions for a lead customer in Q1 2026, with additional pre-production for other hyperscalers and OEMs expected in H2 2026 [3] Company Overview - Vicor Corporation designs, develops, manufactures, and markets modular power components and systems for converting electrical power for use in electrically powered devices [4]