VICR

This Undercovered Dozen series spotlights 12 lesser-covered stocks and ETFs, each with distinct investment theses and ratings. Dan IVES Wedbush AI Revolution ETF is reiterated as a Buy, citing strong stock selection and outperformance versus the S&P 500. Vicor Corporation receives a Strong Buy on record for Q3 results and AI technology leadership, despite recent volatility tied to sector financing concerns.

Vicor (VICR) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Vicor Corporation VICR and Synopsys Inc. SNPS are both benefiting from rising investment in artificial intelligence (AI) by serving different parts of the semiconductor ecosystem. Vicor develops high-density power-conversion components that support AI processors, data centers, industrial equipment and defense applications.

Vicor's AI power-delivery demand, surging Advanced Products revenues and expanding backlog support its growth outlook.

VICR trades at a premium of 16.52X EV/Sales, but AI-driven demand, surging royalties and manufacturing expansion make the stock worth considering despite valuation risks.

Demand for efficient power delivery/conversion platforms have contributed to Vicor's robust AI-driven growth prospects, as observed in the surging revenue/backlog growth. The outsized demand has contributed to the aggressive capacity expansions by 5x, with early accretion expected from H2'27 onwards. VICR benefits from competitors' Vertical Power Delivery patent infringement, with it supporting further licensing tailwinds with OEMs/hyperscalers.

Vicor is a key beneficiary of the AI data center boom, supplying advanced power modules essential for hyperscaler infrastructure. VICR has transitioned from lumpy industrial/defense sales to rapid growth, with 2026 revenue expected at $633M, up over 55% year-over-year. Gross margins have surged to nearly 70%, with high-margin royalties growing as a percentage of 2026 revenue, supporting operating leverage.

The Zacks Electronics - Miscellaneous Components industry players like TEL, VICR, and OSIS are benefiting from the solid adoption of AI.

VICR shares rises 4.5% after Q3 earnings jump 111.1% and revenues surge 78.5%, fueled by AI demand, soaring royalty income and strong Advanced Products sales.

Vicor targets AI-driven growth with expanded manufacturing capacity, strong VPD demand and rising licensing revenues, while outlining its fourth-quarter outlook.