Vicor (VICR) Stock Forecast & Price Target

Vicor Corporation has demonstrated significant financial growth, with its gross margin expanding from 44% in 2020 to 51% in 2024, primarily driven by an increasing mix of Advanced Products, which now constitute 55% of revenue. The company's sales from stocking distributors have more than doubled, rising to 29% of total revenue in 2024, indicating a robust demand for its power solutions and a diversified customer base. Additionally, the anticipated growth in licensing revenue, projected to increase by approximately 50% in 2026 and potentially double in two years, suggests a strong upward trajectory for the company’s financial performance.

Vicor Corp's outlook is negatively affected by a significant decrease in its ending backlog, which fell from $171.7 million to $155.2 million and then further to $152.8 million, indicating weakening demand for its modular power components. Additionally, the anticipated decline in GAAP earnings per share to $2.01 in 2026, attributed to the one-time litigation settlement that boosted 2025 results, raises concerns about future profitability. The company faces challenges such as lower-than-expected capital expenditures in the data center sector, diminishing customer demand, and declining lead times that suggest potential oversupply, all contributing to a growing risk in its financial forecasts.