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

Vicor Corporation (NASDAQ:VICR) is one of the hot tech stocks to invest in. On December 17, Roth Capital initiated coverage of Vicor with a Buy rating and $115 price target. As a dominant leader in power architecture, the company is uniquely equipped to meet the aggressive power density and efficiency demands of next-gen AI platforms. The firm anticipates a period of accelerating growth and margin expansion driven by a new product rollout, the capabilities of its vertically integrated fabrication facility, and a robust IP portfolio that is expected to generate high-margin royalty income.

In Q3 2025, Vicor Corporation (NASDAQ:VICR) reported $110.4 million in quarterly revenue, which was an 18.5% year-over-year increase but a 21.7% sequential decline. This drop was due to the absence of a one-time $45 million patent settlement benefit recorded in the prior period. Despite the revenue dip, net income stood at $28.3 million, with GAAP diluted EPS of $0.63.

The company’s product segments showed resilience, with Advanced Products revenue growing 8.2% sequentially to $65.5 million, while Brick Products increased 26.6% from a base of $44.9 million. A major highlight of the quarter was the growth of Vicor’s IP licensing division, which achieved an annual run rate of ~$90 million. The company is now preparing for a major production ramp-up of its second-generation vertical power delivery/VPD solutions for its lead customer in Q1 2026, with further pre-production for other hyperscalers and OEMs expected in H2 of that year.

Vicor Corporation (NASDAQ:VICR), together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power for use in electrically powered devices.

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Disclosure: None. This article is originally published at Insider Monkey.