Why Vicor Corporation (VICR) Is Becoming a Higher-Stakes Bet on AI Power Conversion

Vicor Corporation (NASDAQ:VICR) is one of the best electrical equipment stocks to buy according to analysts.

On June 22, Needham maintained a Buy rating on the stock and raised its price target to $400 from $350 after Vicor’s 2026 annual meeting. The note pointed to a larger long-term financial model, with management lifting its revenue target to $2.5 billion from a prior $1.0 billion, alongside 70% gross margin and 40% operating income targets. The rating is relevant to the electrical equipment theme because Vicor’s growth case is tied to high-density power conversion, a bottleneck area as AI systems and advanced computing platforms draw more power at the rack and board level.

Needham also highlighted an improved second-generation VPD solution expected to sample to Cerebras in the first quarter of 2027, as well as possible second-generation VPD design wins with existing licensees that could ramp in late 2027, upside to licensing and royalty revenue, and progress toward a second ChiP fab.

Vicor Corporation (NASDAQ:VICR) designs and manufactures modular power components and power systems used in computing, communications, industrial, automotive, aerospace, and defense electronics.

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