Power electronics company Vicor jumped Tuesday after nearly doubling its sequential revenue growth guidance, driven by royalty fees from a new patent license deal for its artificial-intelligence-power technology.
Vicor raised its sequential revenue growth forecast for the fiscal third quarter to more than 20%, up from its previous 10% projection, the company said in press release.
Vicor stock rose 9.7% to $245.50 in premarket trading Tuesday.
Though CEO Patrizio Vinciarelli didn't disclose the company's specific clients, he said a total of four major companies, including a mix of hyperscalers and original equipment manufacturers, have now secured licenses for Vicor's patented power technology, known as Vertical Power Delivery. It's the company's core architecture for powering high-performance artificial-intelligence chips.
Vinciarelli added that the clients approached Vicor after realizing that using unlicensed power delivery components put their AI computing systems at risk of import bans from the U.S. International Trade Commission and patent infringement litigation.
Needham analyst Quinn Bolton sees Vicor's new license agreement as a strong operational success. The firm maintained its Buy rating on the stock and its $320 price target.
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