What Happened?
Shares of power conversion and control solutions provider Vicor Corporation (NASDAQ: VICR) jumped 3.5% in the afternoon session after analyst upgrades from both Craig-Hallum and Needham provided a boost to the shares.
Craig-Hallum raised its rating on Vicor from Hold to Buy. The firm cited increased confidence in the company's royalty outlook and its engagement with advanced Vertical Power Delivery solutions. Separately, Needham also upgraded the stock to a Buy rating. Needham's positive view was based on an improving outlook due to a new two-year license agreement with an existing OEM customer and growing momentum in its IP licensing business.
The shares closed the day at $149.78, up 3% from previous close.
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What Is The Market Telling Us
Vicor’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.9% on the news that a positive outlook from investment firm Roth Capital, which anticipated accelerating growth and margin expansion for the company.
The firm's optimism was based on several factors, including an upcoming new product rollout and the capabilities of Vicor's vertically integrated fabrication facility. Additionally, Roth Capital pointed to the company's strong intellectual property portfolio, which was expected to generate high-margin royalty income. The report noted that Vicor's IP licensing division had already achieved an annual run rate of about $90 million. It also mentioned Vicor was preparing for a major production increase of its power delivery solutions for a lead customer in the first quarter of 2026.
Vicor is up 27.4% since the beginning of the year, and at $148.91 per share, has set a new 52-week high. Investors who bought $1,000 worth of Vicor’s shares 5 years ago would now be looking at an investment worth $1,490.
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