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]

Core Thesis - Vicor Corporation (VICR) is positioned for significant growth due to its unique product offerings and strong financials, including over $1 billion in U.S. manufacturing capacity, $360 million in cash, and no debt, indicating a clean balance sheet and financial flexibility [2][5] Financial Performance - As of December 2nd, VICR's share price was $91.14, with trailing and forward P/E ratios of 49.30 and 46.08 respectively, suggesting a premium valuation [1] - The company currently generates high-margin licensing revenue at a $90 million annual run rate, with expectations to reach $200 million over the next two years, excluding additional monetizable IP assets [3] Operational Efficiency - VICR has improved its operational efficiency, achieving 98% yield, and plans to fully utilize its underfilled factory capacity, which is expected to enhance margins further [4] Market Position and Growth Potential - The company is competing for a major hyperscaler contract, with indications that only VICR's product meets the requirements, leading to anticipated revenue ramp-up in Q1 and additional OEMs in Q3 next year [2][4] - Despite a $500 million revenue base, the company trades at a $2 billion enterprise value, indicating significant undervaluation relative to its growth and profitability potential [3] Ownership and M&A Potential - With a small free float of 22 million shares and the founder CEO owning about half the company, VICR's stock could experience significant price movements on positive developments, similar to other high-IP tech companies [5] - The combination of cash position, IP portfolio, vertical integration, and concentrated ownership makes VICR an attractive candidate for mergers and acquisitions, presenting multiple catalysts for value creation [5]

Core Insights - The Brown Capital Management Small Company Fund experienced an 8.59% return in Q2 2025, underperforming the Russell 2000® Growth index which returned 11.97% [1] - The underperformance was noted to occur in the last few weeks of the quarter [1] Fund Performance - Small-cap US stocks rebounded in Q2 2025 after a challenging first quarter [1] - The fund's top five holdings were highlighted as key picks for 2025 [1] Company Focus: Vicor Corporation - Vicor Corporation (NASDAQ:VICR) was mentioned as a notable stock, developing modular power components and systems [2] - Vicor's one-month return was 5.49%, but it experienced a significant decline of 38.15% over the past 52 weeks [2] - As of September 12, 2025, Vicor's stock closed at $50.77 per share, with a market capitalization of $2.281 billion [2] Fund Adjustments - In Q2 2025, there were no new additions to the Small Company Fund, but three stocks were removed: Helios Technologies (HLIO), Enfusion (ENFN), and Vicor Corporation (NASDAQ:VICR) [3]