Vicor Corporation

Vicor, Inogen and Alphabet were among Thursday's biggest stock gainers, while Corteva led decliners. Vicor shares jumped 10% after the company raised its Q3 sequential growth guidance to more than 30% from its previous outlook of more than 20%, reflecting increased royalties from its first non-exclusive license for vertical power delivery technology. Inogen shares surged 8% after the company agreed to divest its U.S. oxygen rental business to Rotech Healthcare for total estimated cash consideration of up to $25M, a deal expected to close in Q4 2026, alongside a long-term supply agreement with Rotech; the rental business generated $24.3M in revenue in 1H 2026, down 9.8% Y/Y, and Inogen increased its share repurchase authorization by $15M to $45M, expiring June 30, 2028. Alphabet shares edged higher 4% after Google provided a first look at Gemini 4 Argon, its latest frontier AI model, which outperformed OpenAI Astra and Anthropic Fable 5.1 and Opus 5.5 in 13 of 19 benchmarks, including a 77.9% score on DeepSWE v1.1, and will cost $2 per million input tokens and $10 per million output tokens when launched. Corteva shares dropped 64% following the planned tax-free separation of its Crop Protection business into an independent publicly traded company, Vylor, a decline reflecting the mechanical price adjustment associated with the distribution rather than a conventional sell-off, with the separation effective October 1.

Vicor Corporation raised its third-quarter 2026 revenue guidance, sending its shares up over 11% in after-hours trading Wednesday. The power component manufacturer increased its third-quarter sequential growth guidance from more than 20% to more than 30%, citing higher royalties from its first non-exclusive license for Vertical Power Delivery technology. The guidance update, announced on September 30, follows Vicor's September 17 announcement that it granted a non-exclusive license to a new AI OEM licensee, allowing that OEM to procure VPD modules covered by Vicor patents from unlicensed suppliers. VPD is an advanced power architecture that mounts current multipliers directly underneath high-performance processors, designed to eliminate power loss and maximize data center efficiency for AI applications. Vicor, headquartered in Andover, Massachusetts, designs and manufactures modular power components and complete power systems used in high-performance computing, industrial, transportation, aerospace and defense applications.

AutoZone reported fourth-quarter fiscal 2026 earnings of $56.05 per share, beating the Zacks Consensus Estimate of $54.54, sending its shares up 3.3%. THOR Industries posted fourth-quarter fiscal 2026 revenues of $2.31 billion, surpassing the Zacks Consensus Estimate of $2.15 billion, and its shares jumped 5.6%. MillerKnoll reported first-quarter fiscal 2027 revenues of $923.4 million, missing the Zacks Consensus Estimate of $942.7 million, and its shares slipped 0.2%. Vicor revised its third-quarter outlook for sequential revenue growth to more than 20% from an earlier projection of nearly 10%, driving its shares up 19.9%.

Analysts have raised their earnings estimates for Vicor, pushing the modular power components maker's consensus outlook higher for both the current quarter and the full year. For the current quarter, the company is expected to earn $0.87 per share, a year-over-year change of +38.1%, with one estimate moving higher over the last 30 days and no negative revisions, lifting the Zacks Consensus Estimate by 16%. For the full year, Vicor is expected to earn $3.49 per share, representing a year-over-year change of +33.7%, as one estimate moved up over the past month against no downward revisions, pushing the consensus estimate 6.4% higher. The favorable estimate revisions have earned Vicor a Zacks Rank #2 (Buy), and the stock has gained 17.9% over the past four weeks.

The Centers for Medicare & Medicaid Services released preliminary reimbursement proposals that could cut laboratory fee payments by as much as 15% starting Jan. 1, 2027, sending Quest Diagnostics down 6.9% and Labcorp down 4.5% in premarket trading. CMS said the proposed changes, based on data from more than 6,400 laboratories, were intended to realign Medicare payments with private-insurer rates, arguing Medicare currently pays laboratories roughly 16% more than private insurers, and estimated the changes could save taxpayers about $1 billion annually. The proposal followed Quest shares reaching a fresh 52-week high of $248.84, and a Truist Securities note maintaining a Hold rating while raising its price target to $260 from $250 did little to offset concerns about lower reimbursement rates for routine clinical testing. Elsewhere in premarket trading, On Holding jumped 6.4% after the Swiss sportswear company said its board authorized the repurchase of up to $1 billion of its Class A ordinary shares through the end of 2029, alongside new long-term growth targets at its investor day. Vicor surged nearly 9.9% after raising its third-quarter 2026 revenue outlook to sequential growth of more than 20% from roughly 10%, citing royalties from its expanding non-exclusive Vertical Power Delivery licensing program, while Endava fell 12% after placing CFO Mark Thurston on administrative leave pending an accounting investigation and appointing Conor McShane of AlixPartners as interim CFO.

Alibaba CEO Eddie Wu said at the company's Apsara Conference that Alibaba Cloud plans to operate more than 20 gigawatts of data centers globally by 2032, according to FactSet, and he also launched the Zhenwu V900 chip. Quest Diagnostics and Labcorp Holdings each dropped more than 5% after the Centers for Medicare & Medicaid Services released a report showing Medicare has been paying 16% more for laboratory services than private payors, with the federal entity saying it will align most Medicare payments with private sector rates. Vicor rallied 9% after the power electronics company issued third quarter guidance forecasting sequential revenue growth of more than 20% quarter over quarter, versus prior guidance of nearly 10%. On Holding jumped more than 6% after the Swiss sportswear company set new midterm financial targets at its Investor Day, including absolute net sales reaching at least CHF5.6 billion by 2029 and gross profit margin of 65% throughout the period, and said it will repurchase up to an aggregate of $1 billion in Class A ordinary shares by December 2029 while reiterating its full year 2026 outlook. GameStop gained 3.5% after CEO Ryan Cohen disclosed a purchase of 1.2 million shares.

Vicor Corporation granted a non-exclusive license to a leading AI original equipment manufacturer for its patented Vertical Power Delivery technology, allowing the OEM to source VPD modules from both Vicor and unlicensed suppliers. The deal touches Vicor's key near-term catalyst of IP monetization while highlighting its dependence on licensing and enforcement outcomes. The licensing approach, combined with Vicor's patented VPD architecture that tackles the last inch problem in powering high-performance AI processors, could materially influence how hyperscalers structure their power-delivery supply chains. Vicor's narrative projects $1.4 billion in revenue and $453.8 million in earnings by 2029, with a $386.25 fair value implying 73% upside, while the most bullish analysts had already counted on roughly 48.7% annual revenue growth and earnings near US$486.1 million by 2029. The company's purchase of large sites in Merrimack and Hooksett to build ChiP Fab 2 and Fab 3 ties closely to the VPD deal, as expanded U.S. manufacturing could support module demand and supply chain redundancy even as underutilization risk and fixed cost pressure remain central issues.

Generac Holdings shares surged 33% after the backup-power company announced a long-term supply agreement with Amazon that includes $2.4B of initial generator deliveries in 2027 and 2028 for Amazon data centers. The agreement could generate up to $8B in payments to Generac and its global affiliates, according to a regulatory filing, and Generac issued an Amazon subsidiary a warrant to purchase up to 1.69M shares at an exercise price of $200.9266 per share, with the majority vesting as Generac receives payments tied to generator purchases. Vicor Corporation rose 10% after the power-component maker announced a non-exclusive licensing agreement with an unidentified OEM covering its patented Vertical Power Delivery technology for high-performance AI processors, though financial terms, the OEM's identity, and expected purchase volumes were not disclosed. Fluence Energy plunged 16% after the energy-storage company cut its FY2026 revenue guidance to $2.4B from $2.9B-$3.1B previously, below the $2.96B consensus, and projected a full-year adjusted EBITDA loss of approximately $200M versus its prior outlook for a ~$10M loss, citing continued supply-chain issues and delays ramping up contract manufacturing in Houston; Fluence also named AES Corp. executive Bernerd Da Santos as executive vice president and chief operating officer. Viant Technology fell 10% after the advertising technology company launched an underwritten public offering of 8.5M Class A shares by a selling stockholder, with underwriters holding a 30-day option for up to an additional 1.28M shares and Viant receiving no proceeds from the base offering.

Vicor Corporation announced on September 11 that it is purchasing a 334,000-square-foot building on 66 acres in Merrimack, New Hampshire, and another 54 acres in Hooksett to support planned ChiP Fab-2 and Fab-3 power-component manufacturing facilities with a combined footprint of nearly one million square feet. Management says the existing 320,000-square-foot Fab-1 in Andover, Massachusetts, is approaching capacity, and cites a one-year lead time to initial Fab-2 deployment. Second-quarter product revenue rose to $112.9 million from $85.7 million a year earlier, and backlog for product shipments scheduled within the following 12 months reached approximately $380 million as of June 30, up 26% sequentially and 145% year over year. Vicor held $453.6 million in cash and equivalents at June 30, with second-quarter operating cash flow of $34.0 million against capital expenditures of $11.2 million. The announcement did not disclose property purchase prices, a complete construction and equipment budget, or firm customer commitments, and it supplied neither a full production ramp schedule nor a Fab-3 start date.

Vicor is riding a wave of strong demand across high-performance computing, automatic test equipment, industrial, and aerospace and defense markets, with its backlog reaching approximately $380 million at the end of the second quarter of 2026, up 26% sequentially and 145% year over year. The company's book-to-bill remained above 1, and management highlighted ATE as a key growth driver, with business from major ATE customers now a large multiple of historical levels due to AI infrastructure buildout. Vicor expects nearly 10% sequential revenue growth in the third quarter and more than $600 million in revenues for 2026, supported by planned double-digit sequential growth in Advanced Products. However, lead times have increased as demand exceeds capacity, prompting some customers to order earlier, and Vicor plans to build a second fab to support future growth. The company faces tough competition from Analog Devices, whose third-quarter fiscal 2026 revenues jumped 40% year over year, and Texas Instruments, whose data-center revenues doubled in the second quarter of 2026, both challenging Vicor's ability to capture rising demand.

Vicor reported second-quarter 2026 earnings of $1.04 per share, beating the Zacks Consensus Estimate by 68% and rising 14.3% year over year. Revenues increased 1.6% year over year to $143.4 million, surpassing the consensus estimate by 3.13%, driven by sequential growth in Advanced Products and higher royalty contributions. Advanced Products revenues jumped 45% sequentially to $94.2 million, accounting for 65.7% of total revenues, while royalty revenues surged to $30.4 million from $10.4 million a year earlier. The company raised its 2026 revenue outlook to more than $600 million and expects third-quarter revenues to increase nearly 10% sequentially. Vicor's shares rose 3.28% on the news and have gained 95.9% year to date.

Vicor has drawn attention after strong AI-focused earnings, raised revenue guidance, and a disclosure that JPMorgan controls a 6.9% stake in the company's common stock. The most followed narrative pegs fair value at $406.25, well above the last close of $230.41, implying the stock is 43.3% undervalued based on growth levers such as Gen 5 vertical power delivery products and 800V-to-48V converters targeting a market expected to exceed $5 billion by 2027. However, Simply Wall St's fair ratio for the P/E suggests a reasonable multiple of 85.7x, leaving only a modest buffer above the current 76.8x P/E, which is roughly double the US Electrical industry average of 38.1x. The share price has returned 97.17% year to date and 376.15% over the past year, despite a recent pullback of 11.45% in a single day and 28.10% over the past month.

Vicor is experiencing strong demand for its high-density power solutions tied to AI infrastructure, leading the company to boost its second-quarter 2026 revenue guidance to US$142 million and report a sharply higher one-year backlog. The company is expanding manufacturing capacity and growing licensing royalties, while investors such as JPMorgan have disclosed meaningful ownership stakes and analysts have reacted positively to the long-term outlook. However, a more than 100 percent year-to-date stock gain, insider selling in the hundreds of millions of US dollars, and questions about valuation highlight a tension between AI-driven growth enthusiasm and concerns about sustainability. Vicor's narrative projects US$1.3 billion in revenue and US$416.1 million in earnings by 2029, requiring 45.7 percent yearly revenue growth and a roughly US$279 million earnings increase from US$136.7 million today. The most optimistic analysts previously expected about US$595 million in revenue and roughly US$149 million in earnings by 2028, a baseline that the current AI-driven backlog surge and capacity expansion plans could stretch further or pull back if execution stumbles.

Vicor CEO Patrizio Vinciarelli sold 700 shares for $211,680 under a Rule 10b5-1 trading plan adopted in February. The sale represents a tiny fraction of his holdings, as he still directly owns over 8.3 million shares. Vicor's first-quarter revenue rose 20% to $113 million, driven by AI accelerator demand, and its one-year backlog jumped 70% to $301 million. Management guided to roughly $570 million in 2026 revenue and is planning a second fab to address capacity constraints.

Vicor Corporation has seen a notable increase in its earnings estimates, with the Zacks Consensus Estimate for the current quarter rising 34.78% over the last 30 days to $0.62 per share, and the full-year estimate increasing 8.3% to $2.94 per share. Two analysts have raised their estimates for both periods, with no negative revisions, reflecting growing optimism about the modular power components company. The stock has gained 11.5% over the past four weeks, and the improving earnings outlook suggests potential for further gains. Vicor currently holds a Zacks Rank #2, or Buy, indicating it may outperform the broader market.