Intel for power components

Nvidia for power modules

• Modular Power Components: Standardized, interchangeable devices designed for converting electrical power, including brick-format DC-DC converters and other complementary components.
• Power Systems: Integrated solutions built from their modular components to meet specific power conversion and management requirements.
• Electrical and Mechanical Accessories: Supporting items such as cables, connectors, and mounting hardware for their power products.
• Custom Power Systems Solutions: Tailored power conversion systems engineered to address unique customer specifications and applications.

Vicor Corporation (VICR) operates primarily on a business-to-business (B2B) model, selling its modular power components and power systems to other companies rather than individual consumers.

While Vicor does not publicly disclose the names of its specific major customer companies, its clientele consists of a broad range of manufacturers across various industries. Based on the company description, Vicor's major customers fall into the following categories of businesses:

• Original Equipment Manufacturers (OEMs): These companies integrate Vicor's power conversion technology into their own products, which span across diverse markets.
• Independent Manufacturers of Electronic Devices: Similar to OEMs, these are companies that design and produce electronic devices and systems requiring Vicor's advanced power solutions.
• Contract Manufacturers (Electronic Manufacturing Services - EMS providers): Often working on behalf of OEMs, these manufacturers build electronic products and components, utilizing Vicor's parts in their production processes for their various clients.

These customer categories operate within demanding markets such as aerospace and aviation, defense electronics, industrial automation and equipment, instrumentation, test equipment, solid state lighting, telecommunications and networking infrastructure, and vehicles and transportation.

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

Dr. Patrizio Vinciarelli founded Vicor Corporation in 1981 and has served as Chairman, President, and Chief Executive Officer since its inception. Prior to founding Vicor, he was a Fellow at the Institute for Advanced Study in Princeton, New Jersey from 1977 to 1980, and an Instructor at Princeton University. From 1973 through 1976, he was a Fellow at the European Organization for Nuclear Research (CERN) in Geneva, Switzerland. Dr. Vinciarelli holds a doctorate in Physics from the University of Rome, Italy. He holds more than 100 patents for power conversion technology.

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

Mr. James F. Schmidt was appointed Chief Financial Officer, Treasurer, and Corporate Secretary of Vicor Corporation, effective June 1, 2021. Before joining Vicor, Mr. Schmidt had a 35-year career at Analog Devices, where he held leadership positions in Finance, Engineering, Operations, and Sales. He holds a Bachelor of Science (BS) in Chemical Engineering from the University of Cincinnati and a Master of Business Administration (MBA) from the University of North Carolina at Greensboro.

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

Mr. Philip D. Davies has served as Vicor's Corporate Vice President, Global Sales and Marketing since 2011. Prior to joining Vicor, he was 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 Vice President, Sales and Marketing, with NoblePeak Vision Corporation. He held various positions with Analog Devices, Inc. from 1995 to 2006, including Director of World Wide Business Development. From 1987 to 1995, he served in several roles with Allegro MicroSystems, Inc., most recently as Vice President, Engineering. Mr. Davies received a B.S.E.E. and a Master's degree in Power Electronics from the University of Glamorgan.

Claudio Tuozzolo, Corporate Vice President, President, Vicor Power Systems

Mr. Claudio Tuozzolo has been President, Vicor Power Systems since Picor Corporation merged with and into Vicor in May 2018. He previously served as President of Picor since 2003. Before that, he was Director of Integrated Circuit Engineering for Vicor 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 was a Principal Design Engineer for SIPEX Corporation from 1999 to 2001. He has authored nine U.S. patents in semiconductor design and holds B.S. and M.S. degrees, having attended the University of Rome.

Andrew T. D'Amico, General Counsel for Intellectual Property

Mr. Andrew T. D'Amico has served as Vicor's General Counsel for Intellectual Property matters since January 2006 and was appointed to the Board of Directors effective October 21, 2020. Prior to his engagement by Vicor, he accumulated 18 years of private practice experience in patent law, including prosecution, litigation, licensing, and counseling in diverse technological areas, most recently with Fish & Richardson P.C. in New York. Mr. D'Amico earned a law degree from The George Washington University's National Law Center and an electrical engineering degree (B.S.E.E., Magna Cum Laude) from the N.J. Institute of Technology. Before attending law school, he worked as a design engineer in the aerospace industry.

Here are the key risks to Vicor Corporation's business:

1. Intense Competition and Rapid Technological Change: Vicor operates in a highly competitive industry for modular power components and systems, facing pressure from numerous integrated circuit developers and power supply manufacturers. This intense competition can lead to price pressures and reduced market share. To maintain its market position, Vicor must continuously innovate and differentiate its products. The fast pace of technological advancements in power management necessitates ongoing, significant investment in research and development, and a failure to keep up could lead to technological obsolescence, eroding the company's competitive advantage.
2. Intellectual Property (IP) Litigation Risks and Reliance on Licensing: The power supply industry is characterized by aggressive protection of intellectual property rights. Vicor's business model includes a reliance on licensing revenues, making it vulnerable to external parties' compliance with licensing agreements and constant challenges from new, unlicensed products from competitors. Aggressive enforcement of its IP rights could also carry a risk of reputational damage.
3. Supply Chain Vulnerabilities and Geopolitical Risks: As a manufacturer in the global electronics sector, Vicor is exposed to potential supply chain disruptions, which can lead to production delays and increased costs. Furthermore, geopolitical tensions, policy risks, and macroeconomic factors, particularly within the broader AI chip ecosystem that Vicor's power-delivery technology serves, can significantly impact demand, profitability, and investor sentiment for the company.

For modular power components, the global modular and scalable power supplies market was estimated at USD 4.89 billion in 2023 and is projected to reach USD 9.52 billion by 2030, growing at a CAGR of 10.1% from 2024 to 2030. Another estimate for the modular and scalable power supplies market valued it at USD 4.8 billion in 2023 and projected it to reach USD 7.94 billion by 2030, with a CAGR of 6.5%. The Asia Pacific region held the largest revenue share in this market in 2023.

The global DC-DC converter market, a core modular power component for Vicor, was valued at USD 13.61 billion in 2025 and is projected to grow to USD 32.80 billion by 2034, with a CAGR of 9.87%. Other reports show the global DC-DC converter market at USD 12.5 billion in 2025, reaching USD 22.6 billion by 2032 with a CAGR of 9%, or USD 13.44 billion in 2025, reaching USD 30.92 billion by 2034 with a CAGR of 9.70%. Asia Pacific is poised to command an estimated 48% share of the global market in 2025. North America is expected to account for an estimated 28% of the DC-DC converter market share in 2025, and Europe is anticipated to capture approximately 23% in 2025.

The global custom power supply market is projected to reach an estimated USD 35.86 billion by 2025, with a compound annual growth rate (CAGR) of 6.57% during the forecast period of 2025-2033. This market is primarily driven by the increasing demand for tailored power solutions across diverse industries.

In terms of specific markets Vicor serves:

• Aerospace and Aviation: The global aircraft electrical systems market is projected to grow from USD 94.06 billion in 2025 to USD 110.40 billion by 2030, registering a CAGR of 3.3%. The global aircraft electrical power distribution systems market size was valued at USD 26.9 billion in 2023 and is expected to reach USD 36.6 billion by 2033, at a CAGR of 3.13% from 2023 to 2033. North America is estimated to dominate the aircraft electrical systems market, with a share of 38.2% in 2025.
• Defense Electronics: The global generation military power supply market size was valued at USD 11.90 billion in 2025 and is projected to grow to USD 23.09 billion by 2034, exhibiting a CAGR of 7.6%. North America dominated this market with a market share of 37.89% in 2025. Another report estimates the military power solutions market size at USD 10.82 billion in 2023, projected to reach USD 24.9 billion by 2032 with a CAGR of 9.7% over 2024-2032. The defense electrical systems market size is valued at USD 159.4 billion in 2023 and is predicted to reach USD 225.1 billion by 2031, at a 4.5% CAGR. North America dominates the defense electronics market, accounting for approximately 45% of the global share.
• Industrial Automation and Equipment: The global industrial power system market size was valued at around USD 13.54 billion in 2025 and is projected to grow at a CAGR of more than 7.6%, reaching USD 28.17 billion by 2035. Asia Pacific is the largest and fastest-growing region in this market. Another source states the global industrial power systems market was valued at USD 14.6 billion in 2024 and is projected to reach USD 19.9 billion by 2030, growing at a CAGR of 5.3%. The global energy & utilities industrial automation and control systems market size was valued at USD 16,610.0 million in 2025 and is estimated to grow at a CAGR of 10.4% from 2025 to 2033.
• Telecommunications and Networking Infrastructure: The global telecom power systems market size was valued at USD 5.85 billion in 2025 and is projected to grow to USD 13.04 billion by 2034, exhibiting a CAGR of 9.32%. Another estimate for the global telecom power systems market size was USD 5.69 billion in 2024, expected to reach USD 10.77 billion by 2033 with a CAGR of 8.30%. North America dominates the market, holding 35.7% of the market share in 2024. Asia Pacific is projected to register the highest CAGR in this market.
• Vehicles and Transportation: The global automotive powertrain systems market is expected to grow from USD 0.47 trillion in 2025 to USD 0.73 trillion by 2031, at a 7.52% CAGR. Another report valued the global automotive powertrain market at USD 1,062 billion in 2024 and expects it to grow to around USD 4,605 billion by 2034, registering a CAGR of 15.80%. The global automotive electrical distribution systems market was valued at USD 45.7 billion in 2024 and is projected to grow at a CAGR of 7.2% between 2025 and 2034. The vehicle power distribution module market is projected to reach USD 14.5 billion by 2032, exhibiting a CAGR of 6.75%. North America is the largest market for Vehicle Power Distribution Modules, holding approximately 40% of the global market share.

Vicor Corporation (VICR) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Growth in AI Infrastructure and Advanced Products: Vicor is well-positioned in the expanding artificial intelligence (AI) infrastructure market, particularly in high-performance computing (HPC) and General AI (GenAI) power delivery. Advanced Products, including royalty revenue, accounted for 58% of total revenue in Q4 2025. This segment is expected to continue growing significantly, with advanced product revenue increasing 26.6% annually in 2025.
2. Increased Fab Utilization and Capacity Expansion: Management has emphasized plans for significantly higher utilization of its first chip fabrication facility, which currently has the capacity to support $1 billion in advanced products revenue. To meet increasing demand, Vicor is also engaging in capacity reservation agreements with customers and considering investments of $250-$300 million in a new manufacturing facility. This expansion will enable higher production volumes and improve gross margins through economies of scale.
3. Expansion of Licensing and Royalty Revenue: Vicor anticipates substantial growth in its licensing business. Management projects licensing revenue to reach hundreds of millions of dollars in the coming years, up from a run rate of nearly $90 million per year in Q3 2025. This shift toward a richer licensing mix is expected to drive earnings faster than revenue over time.
4. Strong Order Backlog and Book-to-Bill Ratio: The company exited 2025 with a book-to-bill ratio above 1.2, which continued to increase in Q1 2026. The one-year backlog grew by 15.8% sequentially in Q4 2025, reaching $176.9 million. This strong backlog and increasing order rate indicate robust demand and a solid pipeline for future revenue.
5. Penetration into Emerging Markets and Applications: Beyond its dominant position in HPC/AI, Vicor is securing design wins and anticipating growth from industrial, defense and aerospace, and automotive markets. While automotive applications are projected to be a more substantial driver in 2026-2027, early production for high-performance automotive applications is expected to begin by the end of 2026.

Share Repurchases

• Vicor repurchased 25,844 shares for $2.2 million from October 1, 2025, to December 31, 2025.
• Under a buyback program announced on July 31, 2024, the company completed the repurchase of 788,368 shares totaling $36.01 million.
• As of December 31, 2024, approximately $99,503,000 was available for future share repurchases under a new authorization.

Capital Expenditures

• Capital expenditures for the fourth quarter of 2025 amounted to $5.5 million.
• This reflects an increase compared to $1.7 million in the fourth quarter of 2024 and $4.0 million in the third quarter of 2025.
• The company plans to expand its chip fabrication capacity, including establishing a second fab, to meet strong demand from markets such as AI, aerospace, defense, and industrial power.