Vicor stock rating upgraded to Buy at Craig-Hallum on royalty outlook

Investing.com - Craig-Hallum upgraded Vicor Corporation (NASDAQ:VICR) from Hold to Buy on Wednesday, setting a price target of $90.00. The company, currently valued at $3.95 billion with a P/E ratio of 45.8x, has demonstrated impressive gross profit margins of 49.5% in the last twelve months.

The upgrade reflects Craig-Hallum’s increased confidence in Vicor’s royalty outlook and the company’s engagement on leading-edge Vertical Power Delivery (VPD) solutions that could generate sales in 2027. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating, though current valuations suggest the stock may be trading above its Fair Value.

Craig-Hallum cited "much higher royalty outlook" as a key driver for potential earnings upside, noting that future legal actions could drive additional compliance revenue beyond the bus converters that were the subject of prior actions.

The firm highlighted Vicor’s engagement with a hyperscale data center customer and a large OEM, where Vicor’s products appear uniquely positioned to meet customer requirements, though it expressed caution about immediate volume production given limited field experience with the newest VPD product.

Craig-Hallum’s model projects Vicor can achieve earnings per share approaching $3.50 in 2027, with additional upside potential from royalties, supporting the new $90 price target based on approximately 27 times 2027 earnings.

In other recent news, Vicor Corporation reported impressive financial results for Q3 2025. The company achieved an earnings per share (EPS) of $0.63, significantly outperforming the forecasted $0.17. Additionally, Vicor’s revenue reached $110.4 million, surpassing the expected $95.4 million. This earnings report highlights a 270.59% earnings beat, underscoring the company’s strong performance. In related developments, Needham upgraded Vicor from Hold to Buy, setting a price target of $90.00. The upgrade is attributed to an improving outlook, bolstered by a new two-year license agreement with an existing OEM customer and growing momentum in Vicor’s IP licensing business. These developments reflect positive investor sentiment and strategic growth for the company.

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