Vicor Corporation (VICR): A Bull Case Theory 

We came across a bullish thesis on Vicor Corporation on X.com by @TheValueist. In this article, we will summarize the bulls’ thesis on VICR. Vicor Corporation’s share was trading at $166.51 as of January 28th. VICR’s trailing and forward P/E were 90.12 and 82.64 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 sits at a pivotal inflection point where equity value is increasingly driven by two distinct but reinforcing engines: a cyclical, capacity-intensive power module business and a rapidly scaling, high-margin IP licensing and royalty stream.

Historically known for high-reliability, high-density power modules, Vicor has transformed licensing from episodic legal outcomes into a recurring revenue pillar, with royalty revenue rising sharply from $2.8 million in 2022 to $46.6 million in 2024. This shift has been structurally reinforced by favorable ITC rulings in 2025, including limited exclusion orders and cease-and-desist actions that materially strengthen Vicor’s negotiating leverage and accelerate license adoption. By late 2025, management framed licensing as contributing nearly $300 million of revenue through 2026, a scale meaningful relative to Vicor’s historical revenue base and indicative of a durable monetization runway rather than one-off settlements.

Alongside licensing, Vicor’s product strategy is centered on Gen 5 vertical power delivery (VPD), positioned to address fundamental current-density and thermal constraints in next-generation AI systems. With a lead customer entering production in Q1 2026 and broader hyperscaler and OEM engagement targeted for 2H 2026, successful execution could unlock significant operating leverage, particularly given Vicor’s vertically integrated ChiP manufacturing model and substantial underutilized capacity. However, this leverage cuts both ways, as fixed costs and factory absorption remain a margin headwind absent volume ramps.

The investment case hinges on licensing breadth and scope expansion, VPD adoption velocity beyond the lead customer, and Vicor’s ability to align with evolving AI power architectures such as higher-voltage rack designs. While valuation already discounts meaningful upside, incremental licensing wins, visible VPD commercialization, and margin expansion could justify further rerating. Conversely, litigation timing risk, competitive architectural alternatives, and founder-controlled governance introduce non-linear downside, creating a high-upside but execution-sensitive risk/reward profile.

Previously, we covered a bullish thesis on Monolithic Power Systems, Inc. (MPWR) by Hidden Market Gems in April 2025, which highlighted valuation normalization, a fabless high-margin model, strong pricing power, and indirect AI exposure. MPWR’s stock price has appreciated by approximately 106.78% since our coverage due to renewed optimism around AI-linked analog semiconductors. @TheValueist shares a similar thesis but emphasizes Vicor’s licensing-driven upside and vertical power delivery inflection.

Vicor Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held VICR at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of VICR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VICR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.