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VICR · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Vicor Corp (VICR) stock moving?
Vicor's fundamentals were strong in the latest quarter. Q3 revenue reached $197.1M, up 78.5% year over year and 37.5% sequentially, gross margin widened to 68.3%, net income was $63.3M ($1.33 per diluted share), operating cash flow was $69.7M, cash rose to $513.1M, and backlog grew 166% year over year to $406M. Management also announced a planned capacity expansion of nearly 5X from three fabs relative to Fab-1. However, the share price has moved sharply lower since the report. It peaked with an intraday high of 221.915 on Oct 28 and closed at 216.65, then fell to a low of 128.87 on Nov 5 (close 135.10), a drawdown of roughly 38% from that high on the low. The sell-off came on elevated volume of 1.18M and 1.55M shares on Nov 4 and Nov 5, against typical volume near 0.8M. The provided news window contains no items explaining this decline, so the cause cannot be identified from the data. Since Nov 6 the stock has rebounded to a close of 161.68 on Nov 10, with volume tapering to 457k, which suggests selling pressure has eased. The main uncertainty is why the market is discounting strong reported results, and the recovery is still early and partial.
News behind the analysis
- Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2026Q3 product and royalty revenue rose 78.5% year over year to $197.1M, with net income of $1.33 per diluted share and backlog up 166% to $406M. Management also announced the purchase of two additional sites near ChiP Fab-1 to expand capacity.
- Form 10-Q, Quarterly Report for the period ended September 30, 2026Quarterly report filed Oct 26, 2026. Only the filing metadata was provided, so no further detail is available here.
About Vicor Corp
Vicor Corporation is a Massachusetts company, founded in 1981, that designs and makes modular power components, mainly DC-DC converters that deliver electricity efficiently to processors and other electronics. Two things set it apart: its compact, high-density power modules for AI and data-center computing, and a fast-growing patent licensing business that now brings in a large share of its revenue.
How it makes money
Vicor earns money in two ways: selling power modules and collecting patent royalties. Product sales are split between newer 'Advanced Products' (high-density modules used in data centers, AI and high-performance computing, which together with royalties made up about 70% of revenue in Q3 2026) and older 'Brick' power modules sold to industrial, defense and other customers. Royalties come from licensing its power-system patents to equipment makers, and they have grown fast. In Q3 2026 royalties were about $67M out of roughly $197M in total revenue (about a third). Licensing has pushed gross margin up to roughly 68%.
What usually moves VICR
- AI and data-center power spending
- New patent licenses and royalty income
- Patent lawsuits and legal costs
- Bookings, backlog and manufacturing capacity expansion
- Design wins with large computing customers