Vicor(NASDAQ) VICR

Vicor makes modular parts that change and control electrical power. These components help big machines, data centers, and cars run efficiently. Their products turn electricity from a source into the right form for devices to use.

What Vicor Makes

• Advanced Products: Innovative modules used for high-performance computing and artificial intelligence; represented 61% of total net revenues in 2025.
• Brick Products: Integrated power converters used in traditional systems for defense and industrial equipment; represented 39% of total net revenues in 2025.
• Custom Solutions: Tailored power systems designed for specific needs in aerospace, aviation, and heavy transportation.
• Electrical Accessories: Mechanical and electrical parts that support the installation and use of their main power modules.

Recent Strategic Moves

• Settled patent litigation in the second quarter of 2025, resulting in a payment of $45 million to Vicor.
• Implemented a 10% tariff surcharge in July 2025 to manage the rising costs of imported materials.
• Expanded the Andover facility to 320,000 square feet to bring complex manufacturing processes like electroplating in-house.
• Focused sales efforts on the automotive market to provide power solutions for electric and hybrid vehicles.

The Vicor Advantage

The company maintains an advantage through proprietary technology that enables higher power density and efficiency than standard alternatives. Its manufacturing is centralized in a large, automated facility in Massachusetts to ensure quality control for global customers.

The Scorecard

• Net income reached $20.7 million in Q1 2026, up 714% from $2.5 million in Q1 2025.
• Revenue grew to $113 million in Q1 2026, a 20% increase over the same period in 2025.
• Operating income rose to $16.9 million in Q1 2026, up from a loss of $149,000 in Q1 2025.
• Gross profit was $62.4 million in Q1 2026, up 41% from $44.4 million in Q1 2025.

Bottom Line

Vicor has transitioned from serving many low-volume customers to focusing on high-volume opportunities in data centers and electric vehicles. This shift relies on its patented power architectures to meet the increasing energy demands of modern computing.