Are You Overpaying For Vicor Stock Versus Its Rivals?
Vicor (VICR) makes power modules, and its stock is compared here with five rivals. In that group of six, Vicor has the highest price per dollar of profit of the five with a comparable figure. Vicor ranks fifth on sales growth. The stock returned 496.2% in the past 12 months. A top price is easier to accept from the fastest grower in a group, which Vicor is not. So are you paying too much for Vicor compared with its rivals?
Vicor Costs The Most Per Dollar Of Profit
On today’s profit you pay more for Vicor than for any rival with a comparable figure. The measure is the P/E, which is the share price divided by one year of profit per share. A higher P/E means a higher price for the same dollar of profit.
Vicor’s P/E is 91.4, the highest of the five comparable P/Es in the group. ON Semiconductor is left out because its earnings include a loss quarter. Analog Devices has a P/E of 46.6, so Vicor costs about twice as much per dollar of profit.
Analog Devices also grows faster and keeps more of each sales dollar as profit. Its sales grew 33.6% over the past twelve months, against 11.7% for Vicor. Analog Devices’ operating margin, the share of sales left after operating costs, is 35.7%. Vicor’s operating margin is 18.6%, fourth of the six, and its sales growth ranks fifth.
| VICR | MPWR | ADI | TXN | ON | MCHP | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 13.3 | 66.2 | 192.8 | 255.4 | 30.0 | 42.2 |
| PE Ratio (LTM) | 91.4 | 82.3 | 46.6 | 42.2 | 47.6 | 88.2 |
| LTM Revenue Growth | 11.7% | 28.7% | 33.6% | 16.7% | -3.1% | 20.9% |
| LTM Operating Margin | 18.6% | 28.7% | 35.7% | 38.1% | 18.0% | 16.2% |
| 12M Stock Return | 496.2% | 53.2% | 64.1% | 56.8% | 54.5% | 24.6% |
ON Semiconductor’s earnings include a loss quarter, so its P/E is not comparable and is left out of the P/E ranking. The six are not identical businesses, but each figure is measured the same way. Every one of those figures is for the past twelve months. But Vicor’s sales jumped in its latest quarter.
What Did Vicor Report In Its Latest Quarter?
Vicor reported sales rising quickly from one quarter to the next. Revenue in fiscal Q2 2026 was $143.4 million, up 26.9% from the quarter before. That rise is a three-month gain, so it cannot be set beside the rivals’ twelve-month growth.
Against the same quarter a year earlier, revenue rose only 1.6%. That earlier quarter’s revenue included a $45 million patent litigation settlement, so the comparison starts from a raised base. The same quarter is also part of the year that Vicor’s 11.7% growth is measured against. So that figure starts from the raised base too.
Advanced Products, the larger of Vicor’s two product lines, grew faster than the other, with revenue up 45% from the quarter before. Management said on the fiscal Q2 2026 call that AI data centers need the modules Vicor calls Vertical Power Delivery. Management also has a plan for how big Vicor should get.
How Big Does Vicor Plan To Get?
Vicor plans to reach $2.5 billion in revenue. Management gave that goal on the same call. Revenue over the past twelve months was $0.5 billion, so the goal is about five times today’s sales. Management also wants operating profit of 40% of revenue. The best operating margin in the group today is 38.1%, at Texas Instruments.
The price appears to assume Vicor makes real progress toward those goals. That progress depends on factory space. Management said Vicor’s first chip fab, its current factory, is close to full use. Management also said Vicor cannot reach the revenue goal without a second fab. Vicor bought two sites for new fabs in September 2026, and they still have to be built out.
The next evidence you will get is third-quarter revenue. On September 30, 2026, Vicor raised its forecast for that quarter to growth of more than 30% over the second quarter. Vicor credited higher royalties from a license to its Vertical Power Delivery technology.
So far the evidence is one fast quarter and a raised forecast, against twelve months of slower growth than most rivals. Watch third-quarter revenue when Vicor reports that quarter’s results. Growth of more than 30% over the second quarter would be a sign that Vicor is moving toward management’s goal. Growth short of the forecast would not be that sign. Vicor today has the group’s highest comparable P/E and its fifth-ranked sales growth.
Does This Mean You Should Act On VICR?
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