Vicor Rides on Strong Backlog Growth: Can It Beat ADI & TXN?

Vicor VICR is benefiting from strengthening demand across high-performance computing (HPC), automatic test equipment (ATE), industrial, and aerospace & defense markets. The improving demand environment is driving higher bookings, an expanding backlog and greater utilization of Vicor’s manufacturing capacity. This momentum strengthens the company’s growth prospects as it competes across power-management markets with broader rivals such as Analog Devices ADI and Texas Instruments TXN. Vicor ended the second quarter of 2026 with a backlog of approximately $380 million, up 26% sequentially and 145% year over year. 

The strength of Vicor’s backlog appears to be driven primarily by demand across its end markets rather than recent licensing activity. Management noted that the recent licensing agreement contributed relatively little to the backlog increase. The second-quarter 2026 book-to-bill remained above 1, while management described bookings as strong across aerospace and defense, industrial, and HPC markets. ATE has become a particularly important growth driver, with Vicor stating that business with key ATE customers is now a large multiple of historical levels, reflecting increased testing requirements associated with the artificial intelligence (AI) infrastructure buildout. 

Vicor’s differentiated technology is helping it capitalize on this demand. The company highlighted its Factorized Power Architecture, low-noise performance, signal integrity and thin-package technology as key advantages in ATE applications. It is already entrenched with some of the largest ATE companies and is expanding designs with overseas entrants. Advanced Products, meanwhile, targets large Original Equipment Manufacturers (OEMs) and hyperscalers across data-center infrastructure. These products are positioned in higher-performance applications where power density, efficiency and signal integrity are increasingly critical.

Strong demand is pushing Vicor’s first ChiP fab toward higher utilization. Management expects nearly 10% sequential revenue growth in the third quarter and more than $600 million of revenues in 2026, supported by planned double-digit sequential growth in Advanced Products revenues. However, lead times have increased a bit since demand has gone beyond available capacity, which has led some customers to place their orders earlier. To support future growth, Vicor is planning to build a second fab, while its second-generation Vertical Power Delivery strategy is intended to expand its opportunities with hyperscalers and OEMs.

VICR Faces Tough Competition

Analog Devices is challenging Vicor across many of the same high-growth markets. The company’s third-quarter fiscal 2026 revenues jumped 40% year over year, with industrial revenues up 53%, led by ATE, electronic test and measurement, aerospace and defense, and automation. Data-center revenues accelerated sharply, with optical and power revenues growing more than 100%. ADI highlighted that strong design activity, backlog, pipeline and bookings momentum are supporting multi-year growth across ATE and data centers.
 
Texas Instruments poses meaningful pressure. The company is seeing broad strength across industrial, data-center, aerospace and defense, energy infrastructure, and robotics markets. Its data-center revenues doubled year over year in the second quarter of 2026, while industrial revenues rose roughly 30%. Backlog increased for both immediate and longer-dated shipments. TXN's substantial inventory, available manufacturing capacity and competitive lead times allow it to respond rapidly when customers face supply constraints, potentially helping it win incremental designs and challenge Vicor’s ability to capture rising demand.

VICR’s Share Price Performance, Valuation & Estimates

Shares of Vicor have appreciated 71.3% year to date compared with the broader Zacks Computer and Technology sector’s 17.1% growth.

VICR Stock’s Price Performance

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The VICR stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 35.65X compared with the broader sector’s 20.76X. Vicor has a Value Score of F.

VICR’s Valuation

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The Zacks Consensus Estimate for Vicor’s earnings is pegged at 71 cents per share, unchanged over the past 30 days, suggesting 12.7% year-over-year growth.

Vicor Corporation Price and Consensus

Vicor Corporation price-consensus-chart | Vicor Corporation Quote

Vicor currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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