Vicor (VICR) Stock Forecast & Price Target

Vicor Corp's recent financial performance is bolstered by a significant increase in gross margin, which was reported at approximately 50.2%, surpassing prior estimates by about 200 basis points due to a strong revenue beat. The company's progress in its intellectual property licensing business is noteworthy, with management projecting that this segment could potentially double in revenue over the next few years, indicating robust growth potential. Additionally, the recent patent litigation settlement further strengthens Vicor's financial position and licensing agreements, showcasing the company's ability to generate substantial shareholder value.

Vicor Corp's financial outlook is negatively impacted by a notable decline in its ending backlog, which fell to $152.8 million from $171.7 million in consecutive quarters, indicating weakening demand for its modular power components. Furthermore, the company experienced weak net bookings in Q2 2025 and a bookings-to-bill ratio (B2B) dropping below one, largely attributable to order cancellations and pushbacks from Chinese customers responding to a tariff surcharge. While non-GAAP EPS surpassed estimates, the significant reliance on patent litigation settlement revenue coupled with elevated operational expenditures contributes to concerns regarding sustainable growth and profitability moving forward.