Vicor Corporation (NASDAQ:VICR) shares rose nearly 9.9% in premarket trading on Tuesday after the power electronics company raised its revenue outlook for the third quarter of 2026, citing royalty income from its expanding Vertical Power Delivery (VPD) licensing programme.
The company now expects sequential revenue growth of more than 20%, compared with its previous forecast of nearly 10%.
The revised guidance, announced after Monday’s market close, reflects the contribution of licensing agreements covering Vicor’s patented power system technology.
VPD Licensing Agreements Support Revenue Growth
Vicor confirmed that four companies, including major original equipment manufacturers (OEMs) and hyperscale computing operators, have secured licences for its VPD technology.
The agreements expand the company’s revenue sources beyond direct product sales to include recurring royalty payments.
Chief Executive Patrizio Vinciarelli said some hyperscale operators had approached Vicor about licensing after computing systems containing allegedly infringing power modules became subject to import restrictions.
He also warned that other systems using VPD technology without the necessary licences could face similar restrictions.
Discussing the opportunity for additional agreements, Vinciarelli stated:
“Since the first patent to VPD was only recently asserted, it is still possible to secure a license at an early stage of escalation with a low royalty rate.”
The comments indicate that Vicor is seeking further licensing agreements as it enforces its intellectual property rights.
Manufacturing Expansion and Share Buyback
Vicor has also been expanding its manufacturing operations to support future production requirements.
The company acquired two large sites in New Hampshire for the development of its ChiP Fab-2 and Fab-3 facilities.
The projects are expected to nearly triple its existing manufacturing capacity.
Vicor has additionally authorised a $150 million share repurchase programme, providing another potential use for its capital alongside the planned manufacturing expansion.
Shares Advance Despite Weaker Market Conditions
Vicor’s premarket gains contrasted with modest declines in futures linked to the S&P 500, Dow Jones Industrial Average and Nasdaq.
The broader economic calendar contains relatively few major data releases, although several Federal Reserve officials are scheduled to speak during the week.
Investors are monitoring their comments for indications of the central bank’s interest rate policy following its recent increase, described in the report as the first since 2023.
Analyst sentiment towards Vicor remains positive, with a consensus Buy rating and an average 12-month price target of $381.67, according to the figures cited in the report.
The revised revenue guidance and additional royalty income were the principal company-specific developments accompanying Tuesday’s premarket share price increase.