Vicor Q2 revenue rises on higher market demand

Overview

• Modular power components maker's Q2 revenue rose 26.9% sequentially

• Q2 net income more than doubled from prior quarter

• Company cites rising demand in high-performance compute, industrial, and aerospace markets

Outlook

• Vicor says rising demand in compute, industrial, aerospace and defense is absorbing increased capacity

• Company is taking steps toward a second fab for high current density 2nd Gen VPD ChiPs

• Vicor sees incremental opportunity from industry shift to IVRs and current multipliers in power systems

Result Drivers

• CAPACITY UTILIZATION - Co said rising demand in high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within its first ChiP fab

• AI AND HYPERSCALE OPPORTUNITIES - Co highlighted incremental opportunities from power system challenges in AI OEMs and hyperscale customers, citing its 2nd Gen VPD IP as a differentiator

Company press release: ID:nGNX5rFtcb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components equipment peer group is "buy"

• Wall Street's median 12-month price target for Vicor Corp is $400.00, about 73.2% above its July 20 closing price of $230.99

• The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 49 three months ago

Reuters Recommended Reads

• July 20 - Chipmakers head for big profit gains, but will it be enough?

• July 21 - 3M lifts annual profit forecast as industrial unit remains resilient

• July 20 - Hut 8 signs $9.8 billion AI data center lease, fully commercializes Texas campus

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)