What Happened?

Shares of power conversion and control solutions provider Vicor Corporation (NASDAQ:VICR) jumped 25.4% in the afternoon session after the company delivered exceptional fourth-quarter 2024 results, which blew past analysts' sales and earnings estimates. Sales grew 3.8% over the previous year, driven by higher royalty revenue, which nearly doubled from the prior year, offsetting a decline in product sales. Net income rose significantly, leading to an EPS beat, but sequentially, earnings dipped as operating costs grew. Zooming out, we think this was a good quarter with some key areas of upside.

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What The Market Is Telling Us

Vicor’s shares are very volatile and have had 29 moves greater than 5% over the last year. But moves this big are rare even for Vicor and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 4 months ago when the stock gained 18% on the news that the company reported strong third-quarter earnings that blew past analysts' revenue and EPS estimates. Notably, the company plans to start shipping the second generation of its Vertical Power Delivery (VPD). VPDs help to improve the power efficiency of AI processors, highlighting the company's ability to benefit from the growing demand for AI-powered technologies. Zooming out, we think this was a good quarter with some key areas of upside.

Vicor is up 30.1% since the beginning of the year, and at $62.72 per share, has set a new 52-week high. Investors who bought $1,000 worth of Vicor’s shares 5 years ago would now be looking at an investment worth $1,305.

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