Vicor reports record Q3 revenue growth amid AI demand

Vicor has reported significant financial growth for the third quarter, driven by high demand for its power delivery solutions used in AI accelerators. Revenue rose 78.5% year-over-year to $197.1 million, while earnings per share increased by 111% to $1.33. The company also saw a 207% increase in royalty revenue and achieved a gross margin of 68.3%.

Despite these strong fundamentals, the company's stock has experienced significant volatility, dropping nearly 50% from recent highs due to sector-wide selling in AI hardware and concerns regarding the financing of AI infrastructure.

Vicor is currently facing supply constraints rather than demand issues, with its existing manufacturing capacity nearly full. To address this, the company plans to expand production, including a second manufacturing site in New Hampshire, with the goal of reaching approximately five times its current capacity by the second quarter of 2027. Management intends to fund this expansion through cash reserves rather than debt or equity raises.