Power chip stocks rallied on Tuesday after Vicor Corporation (VICR) raised its second-quarter revenue guidance, signaling continued strength in demand tied to artificial intelligence infrastructure and data center power systems.
Vicor increased its second-quarter revenue forecast to $142 million from a prior outlook of $126 million.
The company said the higher guidance reflects stronger product revenue and additional royalty income tied to a new licensing agreement covering its patented power-system technologies.
Shares of Vicor surged sharply following the announcement, climbing as much as 24% intraday and reaching an all-time high before trimming some gains later in the session.
The stock has now risen roughly 203% this year as investors continue rotating into companies tied to AI-related infrastructure spending.
The rally also lifted other companies operating in the power semiconductor and power management space.
AI infrastructure demand boosts power chip sector
Investor enthusiasm around the sector has accelerated alongside growing demand for AI servers and large-scale data center infrastructure, which require increasingly sophisticated power delivery and cooling systems.
Vicor specializes in modular power components and power systems used to convert and distribute electrical power efficiently across computing environments.
The company’s technologies are widely used by original equipment manufacturers and hyperscale data center operators seeking higher performance and energy efficiency.
The latest guidance increase suggests AI infrastructure demand remains strong despite broader concerns about technology valuations and slowing economic growth.
The company said the updated forecast was partly driven by additional royalty payments from a newly signed licensee.
The agreement grants access to Vicor’s portfolio of patented power-system technologies, including power converter topologies, control systems, power components, and power distribution architectures.
“An all-inclusive license enables [original equipment manufacturers] and hyper-scalers to secure multi-source access to all of the power system innovations pioneered and patented by Vicor,” Chief Executive Patrizio Vinciarelli said in a statement.
Analysts noted that while royalty revenue remains smaller than Vicor’s core product business, the new agreement demonstrates growing interest in the company’s intellectual property portfolio as AI infrastructure expands globally.
Licensing business adds new growth layer
Vicor generated approximately $15 million in royalty revenue during the first quarter.
Analysts surveyed by FactSet had expected second-quarter royalty revenue to rise modestly to roughly $16 million before the company raised guidance.
The addition of a new licensee could signal broader adoption of Vicor’s technologies among hyperscale operators and enterprise customers building advanced AI computing systems.
The company also recently reported stronger-than-expected first-quarter financial results.
Vicor posted earnings per share of $0.44 for the quarter, exceeding analyst forecasts of $0.37.
Revenue reached approximately $112.97 million, also ahead of expectations.
Investors have increasingly focused on companies supplying critical infrastructure components required to support AI workloads, including power management systems, networking hardware, semiconductors, and cooling technologies.
As AI computing demand continues scaling rapidly, power efficiency and reliable energy distribution have become central challenges for data center operators, further boosting interest in companies such as Vicor.
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