Vicor (VICR) Stock Forecast & Price Target

Vicor Corporation is positioned for substantial growth, as evidenced by its fourth-quarter royalty revenue of $58.3 million, which exceeded expectations and demonstrated an 18% quarter-over-quarter increase. Management's commentary suggests that 2025 may be a landmark year in terms of both revenue and profitability, highlighting a positive forecast for the company's financial performance. Additionally, the company has secured new licensing agreements, including a significant win believed to be with Google, which is expected to drive further revenue through additional orders for its modular power products.

Vicor Corp reported weaker-than-expected revenue of $37.9 million for 4Q24, which marked a 13.4% decrease quarter-over-quarter and fell short of the prior estimate of $43.0 million. The company's performance is hindered by fundamental limitations in traditional voltage regulation and conversion architectures, leading to decreasing power efficiency as demand in high-performance computing and telecommunications expands. Despite a Non-GAAP earnings per share of $0.32 exceeding estimates, the lack of near-term guidance and the ongoing delays in the introduction of Generation 5 products contribute to a negative outlook for the stock.