Nov. 25 at 8:17 PM
$VICR
The information below was posted in our premium Discord channel but I thought I would post it here for the benefit of Stocktwits members. It will also give you a "sample" of the type of things you will find on our server:
"PLEASE NOTE: Vicor provides solutions for converting electrical power for use in various applications, such as enterprise and high-performance computing, telecommunications, industrial equipment, and aerospace and defense. As such, it would likely not be invulnerable to pullbacks within the tech sector.
The stock recently broke out of a pretty long (163 day) stage 1 consolidation base following its last earnings on 10/21. Notably, stage 1 base breakouts are often looked upon favorable by technical investors.
The primary thesis here involves Vicor's technology and licensing revenues...both of which led to the recent breakout mentioned above.
As for the technology, I am re-sharing information originally shared by 'sold2you' who actually is the one who told me about the company (techie's will like this):
"The secret sauce that VICR has... it's called Vertical Power Delivery (VPD). AI GPUs require 700W of power MINIMUM in the form of ~1.0V (ultra-low voltage) and 700A (ultra-high current). Some systems pushing 1200W.
The existing limitation is that the massive 700A current generates tremendous 'waste heat' in the 'last 1 inch' from the motherboard to the chip, according to the I^2*R formula. At this point, VICR's solution (VPD) places the power converter vertically right under the GPU chip, not on the motherboard (PCB). As a result, it brings high voltage (48V) right up to the chip and then converts it to ~1.0V/700A just below the chip and delivers it. The distance the ultra-high current travels is reduced to less than 1mm, drastically reducing power loss and heat generation."
Importantly, VICR's lead customer is a company called Cerebras that is still private. When Cerebras does go public it should be HIGHLY ANTICIPATED given Cerebra's chip is touted to be faster than NVDA's. Regarding the speed of the Cerebras chip, below is a video which helps provide perspective. In particular, you may want to pay attention to the minute 4 mark of the video:
https://www.youtube.com/watch?v=4tbeWbAfxiw
It seems that, for now, VICR is a good way (and perhaps the only way) to indirectly invest in Cerebras until they go public. Cerebras is expected to launch production in Q1-2026 with VICR inside. Subsequently, there are two other hyper-scalers scheduled behind them for VICR in 2nd half of the year. This is all new business that will fill up their VICR's new fab in Andover MD.
As for the licensing part of the business, I will also quote 'sold2you' with the following information that he derived from their last earnings report/gudiance (you will see why I am friends with him):
"...after successfully defending their IP they have this other business delivering ongoing royalties from a separate vertical single chip 48/12v converter that everyone in the industry uses and HAD been infringing on. They won this ITC case in Q2 and are now receiving "catch up" royalties and ongoing new royalties. they exited Q3 at a
$90M run rate of license fees... roughly
$2/share. This alone supports the multiple and you get the Fab business for free."
Lastly, following AMD's recent investor day, there was some specualtion that AMD might be using VICR technology. Nothing has been confirmed but the speculation was not random. Prior to the recent market pullback that has taken the stock back to
$84.37/share, the AMD speculation led to VICR stock hitting
$101/share on 11/12. For those interested here is a link to some more information in this area posted previously on this channel by 'sold2you':
(post not allowed here)
Net, there are a few of us in this channel that are maintaining positions in VICR although we realize it can be a bumpy road, especially if the tech trade continues to show more cracks. However, it should be noted that a number of us did enter this trade prior to the earnings on 10/21 so we are up at the moment and managing the trade acccordingly.
I am also posting analyst reports here from Needham (10.22.25), Craig Hallum (10.22.25) and CJS Securities (11.13.25) for those interested in reading more. Notably, the CJS report discussing the AMD points above.
(Reports cannot be posted on Stocktwits)
