Shares of Vicor Corporation (VICR) surged 32.74% in after-hours trading on Tuesday following the release of its second-quarter financial results, which significantly exceeded analyst expectations. The company reported robust revenue growth, a substantial patent litigation settlement, and an optimistic outlook for its AI-related products.

Vicor reported second-quarter earnings per share of $0.91, dramatically surpassing the consensus estimate of $0.18. Revenue for the quarter reached $141 million, a 64.3% increase year-over-year and well above the analyst expectations of $96.43 million. The company's performance was bolstered by a $45 million patent litigation settlement, which contributed to the revenue increase.

The power module manufacturer also saw a significant improvement in its gross margin, which rose to 65.3% from 49.8% in the same period last year. This increase reflects enhanced profitability and operational efficiency. Additionally, Vicor's net income for the quarter reached $41.2 million, marking a substantial turnaround from a net loss of $1.2 million in the previous year.

Looking ahead, Vicor's CEO, Dr. Patrizio Vinciarelli, expressed optimism about the company's future, particularly in the AI sector. He stated, "We are bringing to fruition high performance ChiPs and 2nd gen VPD for AI applications, which should increase product revenues and utilization of our first ChiP fab." This forward-looking statement suggests potential for continued growth, especially as demand for AI-related technologies continues to rise.

The after-hours stock price surge reflects investor enthusiasm for Vicor's strong quarterly performance and its strategic positioning in the growing AI market. As the company continues to leverage its patented innovations and expand its presence in high-density power systems, market observers will be closely watching its performance in the coming quarters.