Why Vicor Shares Are Higher Today

Vicor Corp VICR shares are trading higher by over 5% as Needham & Co. analyst N. Quinn Bolton raised the price target to $65.00 from $55.00 at a Buy rating

The analyst is bullish on the company's near-term performance and long-term prospects post the Annual Shareholder Meeting last Friday.

Bolton is confident that Vicor will benefit from higher demand for AI processors/XPUs, given the company's significant demand acceleration for AI systems/projects over the last three months led by ChatGPT.

Also, the analyst believes the recent upside in NVIDIA Corporation NVDA A100/A800 GPU demand should drive Vicor growth in the near term.

Bolton thinks some XPU customers will launch new SKUs of new or existing platforms and higher-performance systems based on Vicor's Factorized Power architecture in the coming one to two years.

Bolton sees management's tone related to winning designs in the current generation and next-generation XPUs positively improved. 

The analyst thinks Vicor is well placed to deliver 48V Factorized Power solutions for custom-designed AI processors created by leading hyperscalers in the next couple of years. 

Bolton estimates revenue of $393.8 million in 2023 and $450.0 million in 2024, with an operating margin of 12.8% in 2023 and 18.5% in 2024. 

The analyst projects an EPS of $1.10 in 2023 and $1.60 in 2024. 

Price Action: VICR shares are up 6.18% at $56.35 on the last check Monday. 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorEquitiesMid CapNewsPrice TargetReiterationMarketsAnalyst RatingsMoversBriefsExpert Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!