By Nate Wolf

Investments in artificial intelligence continue to power far-flung parts of the U.S. stock market. On Wednesday, another name hopped on the AI gravy train.

Vicor, a company that makes power systems and components, says it will soon count every so-called hyperscaler as a customer. Shares rose 27% to $82.64 Wednesday after a solid earnings report and a couple of upgrades from Wall Street firms.

AI data centers need an astounding amount of energy to power their processors, and Vicor has built power-delivery architecture to help meet these requirements. Its latest-generation power-delivery solution is progressing toward a 2026 launch, management said on a conference call. Discussions are underway with select potential customers, including a hyperscaler and multiple chip makers.

That backdrop bodes well for Vicor's licensing business, which receives royalties for licensing patented technology to customers. The company forecasts its licensing business can expand from its current $90 million annual revenue run rate to $200 million in the next two years, CEO Patrizio Vinciarelli said on the call.

"And that's not the end of that growth opportunity," Vinciarelli said. "I think it can go well beyond that level."

Needham upgraded Vicor stock to Buy from Hold and set a $90 target for the price, citing the strong IP licensing results. As more AI hyperscalers begin to use vertical power-delivery solutions, Vicor has an opening to win new licensing agreements, analyst N. Quinn Bolton said.

The licensing outlook also caught the eye of analysts at Craig-Hallum, who raised their revenue and earnings estimates for 2025 and 2026. The firm upgraded Vicor to Buy from Hold and lifted its price target to $90 from $55.

It helps that Vicor is starting its AI push from a position of strength. The company posted a net profit of $28.3 million for the third quarter, up from $11.6 million the prior year. Revenue climbed to $110.4 million from $93.2 million a year before, driven by an uptick in both product revenue and IP royalties.

Write to Nate Wolf at nate.wolf@barrons.com

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October 22, 2025 14:39 ET (18:39 GMT)

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