Vicor (VICR) Stock Forecast & Price Target

Vicor Corp's recent financial performance demonstrates a significant positive trajectory, highlighted by a gross margin increase to approximately 50.2%, which exceeded earlier estimates by about 200 basis points. The company's broadened Intellectual Property (IP) licensing business is gaining momentum, with management projecting a potential doubling of royalty revenue in the coming years, further contributing to profitability. This strong growth in the high-margin IP licensing segment combined with robust revenue performance positions Vicor favorably for continued shareholder value creation.

Vicor Corp is experiencing a notable decline in its backlog, which fell to $152.8 million from $171.7 million in the previous quarter, indicating a potential weakening of demand. The company also reported weak net bookings in the second quarter of 2025 and a booking-to-bill ratio below one, primarily driven by order cancellations from Chinese customers in response to a tariff surcharge aimed at preserving margins. Additionally, despite a strong non-GAAP EPS of $1.00—significantly higher than estimates—the underlying operational expenses suggest persistent financial pressure, raising concerns about future performance.