VICR

Vicor designs modular power-conversion components, with its Advanced Products line now concentrated in the data-center and hyperscaler segments where it has built a leadership position powering high-performance AI processors. FY2025 was a sharp inflection: revenue grew 13.5% to $408M, gross margin expanded to 63.6% (gross profit up 41.0% to $259M), and net income exploded to $119M from just $6.13M a year earlier — diluted EPS of $2.61. The balance sheet is pristine: $403M cash (up 45.3%), only $74.0M total liabilities against $712M equity (liabilities/equity of 0.10x), and $140M of operating cash flow. The company also repurchased stock under a $100M authorization and shrank shares 10.9%.

The strategic positioning is genuinely attractive. Vicor's Factorized Power Architecture and 48V DC distribution serve the AI accelerator and hyperscaler buildout — a secular tailwind — and management is deliberately shifting toward a low-mix, high-volume model around larger customers, with potential IP-licensing upside. Returns improved to 16.7% ROE and the operating margin swung to 20.1% from near-breakeven, evidence the operating leverage is real once volumes arrive.