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Here are 1-3 brief analogies for Vicor (VICR):

• A more specialized Texas Instruments (TI) focused on high-density, modular power solutions.
• An Analog Devices (ADI) focused exclusively on highly efficient, compact power components.
• Corning (GLW) for the internal power systems of advanced electronics and computing.

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• High-Performance AC-DC Converters: Modular power components that convert alternating current to direct current with high efficiency for various industrial, medical, and telecom applications.
• DC-DC Converters: Compact, high-density power modules that efficiently convert direct current from one voltage level to another, crucial for data centers, automotive, and defense systems.
• Power-on-Package Solutions: Integrated power delivery networks designed to provide efficient and precise power directly to high-current, low-voltage processors and ASICs within their packages.
• Power Management ICs (PWM Controllers): Integrated circuits that regulate power delivery and manage voltage rails for various electronic systems.

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Vicor (VICR) sells primarily to other companies (B2B) that integrate its modular power components and power systems into their larger products and infrastructure.

According to Vicor's annual report (10-K) for the fiscal year ended December 31, 2023, no single customer accounted for 10% or more of its net revenues. This indicates a diversified customer base, with no one customer representing a dominant portion of its sales. However, based on its target markets and industry presence, Vicor's major customers are found across several high-growth, technology-intensive sectors.

Key customer categories and illustrative examples of companies that operate in these sectors and are likely major customers (or types of customers) for Vicor include:

• High-Performance Computing (HPC) and Artificial Intelligence (AI) Infrastructure: Companies designing and manufacturing advanced servers, AI accelerators, and data center equipment.

  • NVIDIA (NVDA): A leading designer of GPUs and AI accelerators, which require high-density, efficient power delivery solutions that Vicor provides.

  • Server Manufacturers / Data Center Builders: Companies such as Super Micro Computer (SMCI), Dell Technologies (DELL), and Hewlett Packard Enterprise (HPE) for their server and storage solutions. Major hyperscale cloud providers (e.g., Alphabet/Google, Microsoft, Amazon Web Services) also design custom hardware that may incorporate Vicor components.

• Automotive (Electric Vehicles and Autonomous Driving): Manufacturers of electric vehicles and Tier 1 suppliers developing advanced power systems for automotive applications.

  • Examples include major EV manufacturers like Tesla (TSLA) and other automotive OEMs and suppliers focused on electrification and autonomous driving platforms.

• Industrial and Communications: Companies in industrial automation, robotics, aerospace, defense, and telecommunications infrastructure (e.g., 5G).

  • This category encompasses a broad range of companies requiring robust and efficient power solutions for specialized equipment and infrastructure.

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Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer

Dr. Patrizio Vinciarelli founded Vicor Corporation in 1981 and has served as its Chairman of the Board, President, and Chief Executive Officer since then. Before establishing Vicor, he was a Fellow at the Institute for Advanced Study in Princeton, New Jersey, from 1977 to 1980, and a Fellow at the European Organization for Nuclear Research (CERN) in Switzerland from 1973 through 1976. He earned his doctorate in Physics from the University of Rome, Italy. Dr. Vinciarelli holds more than 100 patents in power conversion technology. Forbes has noted him as a billionaire.

James F. Schmidt, Chief Financial Officer, Corporate Vice President, Treasurer and Secretary

James F. Schmidt was appointed Chief Financial Officer, Corporate Vice President, Treasurer, and Secretary of Vicor, effective June 1, 2021. Prior to joining Vicor, Mr. Schmidt spent 35 years at Analog Devices, Inc., where he gained extensive experience in finance, engineering, operations, and sales. His roles at Analog Devices included Vice President, Global Broad Market & Sales Operations from 2017 to 2020, and Senior Director, Global Business Controller from 2013 to 2017. Mr. Schmidt holds a B.S. in Chemical Engineering from the University of Cincinnati and an MBA from the University of North Carolina at Greensboro.

Philip D. Davies, Corporate Vice President, Global Sales and Marketing

Philip D. Davies has served as Vicor's Corporate Vice President, Global Sales and Marketing, since 2011. Before joining Vicor, he was the Business Creation Team Leader for the Solid State Light Engine business unit of OSRAM Sylvania from September 2010 to February 2011. From 2006 to 2010, Mr. Davies was the Vice President, Sales and Marketing, at NoblePeak Vision Corporation. He also held various positions at Analog Devices, Inc., from 1995 to 2006, including Director of World Wide Business Development. From 1987 to 1995, he worked at Allegro MicroSystems, Inc., where his last role was Vice President, Engineering.

Claudio Tuozzolo, President, Vicor Power Systems

Claudio Tuozzolo has been the President of Vicor Power Systems since Picor Corporation merged with Vicor in May 2018. He was previously President of Picor from 2003. Before that, he held roles at Vicor as Director of Integrated Circuit Engineering from February 2003 to November 2003, and Manager of Integrated Circuit Design from 2001 to February 2003. Prior to joining Vicor in 2001, Mr. Tuozzolo worked as a Principal Design Engineer for SIPEX Corporation from 1999 to 2001. He holds nine U.S. patents in semiconductor design.

Alvaro Doyle, Chief Information Officer and Corporate Vice President

Alvaro Doyle has served as Vicor's Chief Information Officer and Corporate Vice President since 2020. His previous roles at Vicor include Vice President of Application Development and Business Analytics, and Chief Compliance Officer. He also served as Senior Technical Manager, Principal Software Engineer, Manager of Manufacturing Systems, and Senior Software Engineer within the company. Earlier in his career, he worked as a Software Engineer at the UMass Medical School's PeopleSoft integration group.

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The key risks to Vicor (VICR) are primarily centered around its customer concentration, the highly dynamic technological landscape of its industry, and the complexities of its international operations.

1. Dependence on High-Volume Customers and Order Volatility: Vicor's operating results are significantly influenced by a relatively small number of large, high-volume customers. Unanticipated delays in purchase orders or changes in product plans from these key clients can lead to substantial fluctuations in revenue and overall operating results. The unpredictability of customer orders and forecasting operating results is a continuous challenge for the company.
2. Rapid Technological Change, Intense Competition, and Innovation Risk: Vicor operates within the power system industry, which is characterized by rapid technological advancements, intense competition, and quick product obsolescence. The company's future success relies heavily on its ability to continuously develop and market differentiated, leading-edge power conversion products and achieve customer acceptance for new and advanced products, such as its Power-on-Package concept and solutions for electric vehicles. This development process is complex, time-consuming, and costly, with no guarantee of return on investment.
3. International Operations and Geopolitical/Economic Uncertainties: A significant portion of Vicor's total revenues is derived from sales outside the United States, including a notable percentage from China and Hong Kong. This global presence exposes the company to risks associated with international operations, including global economic downturns, political instability, trade policy changes (such as tariffs and trade disputes), and fluctuations in foreign currency exchange rates, all of which could materially and adversely affect its business and financial performance.

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The increasing trend among major AI accelerator manufacturers and hyperscale data center operators to pursue highly integrated, proprietary, or custom-developed power delivery solutions, sometimes incorporating power conversion directly within the processor package or in close proximity on the substrate, could pose an emerging threat to Vicor's modular, point-of-load power component business. While Vicor is a leader in high-density, high-efficiency power modules for these applications, if these major customers prioritize bespoke integrated solutions—developed either internally or in deep collaboration with other large power semiconductor players (such as Infineon, Analog Devices, or Texas Instruments)—it could reduce the demand for Vicor's off-the-shelf or semi-custom modular solutions in high-volume, performance-critical applications.

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The addressable market for Vicor's main products, primarily high-density power module solutions, is significant and growing. This market is projected to reach approximately $6.7 billion globally by 2030, expanding from an estimated $2.4 billion in 2024, with an 18.5% compound annual growth rate (CAGR). The serviceable available market for these solutions is also expected to exceed $5 billion by 2027.

Vicor designs, develops, and manufactures advanced power conversion components and systems, including modular components, DC-DC converters, and custom power systems. These products are crucial for applications across various sectors, such as AI accelerators, data centers, electric vehicles (EVs), renewable energy systems, aerospace and defense, industrial automation, and telecommunications. Vicor operates and sells its products globally, serving customers in North and South America, Europe, and Asia.

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Expected Drivers of Future Revenue Growth for Vicor (VICR)

Vicor (NASDAQ: VICR) is anticipated to experience future revenue growth over the next two to three years driven by several key factors:

• Expanded Intellectual Property (IP) Licensing: Vicor expects significant revenue contributions from its expanded IP licensing practice, particularly in high-density power technologies relevant to AI, automotive, and industrial markets. Settlements and licensing agreements are projected to contribute nearly $300 million to Vicor's revenues through 2026. Management anticipates this licensing business to grow substantially, potentially at an annual rate of 50%, and double within a couple of years, with Vicor's IP being essential for many AI applications.
• Growth in Artificial Intelligence (AI) and High-Performance Computing (HPC) Markets: The increasing demand for high-density power systems in AI data centers and high-performance computing applications is a significant driver. Vicor's advanced power conversion technologies are critical for these markets, and the company is strategically positioned to benefit from the ongoing upgrades to power infrastructure required by increasing AI workloads.
• Launch and Adoption of New Products (Gen 5 Vertical Power Delivery and 800V Power Modules): The adoption of Vicor's second-generation Vertical Power Delivery (VPD) solutions, including Gen 5 VPD, and the scaling of operations in its new ChiP fab are expected to fuel revenue growth. The Gen 5 VPD solution for a lead customer has met target specifications and is progressing towards a Q1 2026 production launch. Additionally, Vicor is developing a new 800-volt power module capable of delivering 10 kilowatts at 48 volts in a compact form factor, with sampling expected to begin in Q4. The serviceable available market (SAM) for the company's high-density power module solutions is projected to exceed $5 billion by 2027.
• Expansion into New Markets (Automotive and Industrial): Beyond its core computing applications, Vicor is actively expanding its presence and IP licensing in the automotive and industrial sectors. This diversification into new high-growth markets for its high-density power technologies presents additional avenues for revenue generation.

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Share Repurchases

• Vicor Corporation authorized a share repurchase program for up to $100 million in July 2024, with no expiration.
• In the third quarter of 2025, Vicor completed share repurchases totaling $15.6 million.
• The company repurchased 747,124 shares for $33.82 million under its ongoing program since July 31, 2024.

Share Issuance

• In June 2020, Vicor completed a public offering of common stock, issuing 1,769,321 shares and receiving approximately $110 million in net proceeds.
• Equity-based compensation expense for the second quarter of 2025 was approximately $3.7 million.

Capital Expenditures

• Capital expenditures for the third quarter of 2025 totaled $4.0 million, a decrease from $8.4 million in the corresponding period a year ago and $6.2 million in the second quarter of 2025.
• Annual capital expenditures were $29 million in 2020, $48 million in 2021, $64 million in 2022, $33 million in 2023, and an estimated $24 million for 2024.
• Proceeds from the June 2020 stock offering were intended to expand manufacturing facilities and for other general corporate purposes. Current construction in progress is approximately $8.3 million, with $2.4 million remaining to be spent, primarily for manufacturing equipment.