Vicor Corporation (VICR): A Bull Case Theory 

We came across a bullish thesis on Vicor Corporation on X.com by Crussian17. In this article, we will summarize the bulls’ thesis on VICR. Vicor Corporation’s share was trading at $91.14 as of December 2nd. VICR’s trailing and forward P/E were 49.30 and 46.08 respectively according to Yahoo Finance.

Vicor Corporation, 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. VICR is a uniquely positioned, vertically integrated company with over $1 billion in U.S. manufacturing capacity based in Massachusetts, $360 million in cash, and no debt, giving it a clean balance sheet and significant financial flexibility. On its recent call, management highlighted that they, along with two competitors, were vying for a major hyperscaler contract and were informed that only VICR’s product met the requirements, with ramping expected in Q1, followed by two OEMs in Q3 next year.

This indicates a substantial upcoming revenue step-up that is not yet reflected in current estimates. The company also generates high-margin licensing revenue, currently at a $90 million annual run rate, with clear line-of-sight to $200 million over the next two years, excluding additional monetizable IP assets that VICR largely owns. Despite a $500 million revenue base, the company trades at a $2 billion EV, implying significant undervaluation relative to its growth and profitability potential.

Operationally, VICR has addressed historical yield issues, now achieved 98% efficiency, and plans to fully utilize its underfilled factory capacity, further enhancing margins. Estimates for next year remain conservative, not yet incorporating the impact from the new large customers or licensing growth.

With a small free float of 22 million shares and the founder CEO owning about half the company, the stock could see outsized moves on positive developments, similar to other high-IP tech plays like ARM. Given its cash position, IP portfolio, vertical integration, and concentrated ownership, VICR is not only poised for operational upside but also represents an attractive M&A candidate, creating multiple potential catalysts for significant value creation.

Previously we covered a bullish thesis on Monolithic Power Systems, Inc. (MPWR) by Hidden Market Gems in April 2025, which highlighted its fabless operations, high margins, pricing power, and AI exposure at a reasonable valuation. The stock has appreciated by 69.47% since coverage. The thesis still stands as fundamentals remain strong. Crussian17 shares a similar perspective but emphasizes VICR’s vertical integration, licensing growth, and upcoming hyperscaler and OEM ramp.

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Disclosure: None.