Key Takeaways
- Vicor shares jumped 11% and TTM Technologies 10% today after Meta Platforms announced plans to raise up to $95 billion in stock to pay for its AI build-out.
- Vicor had no news of its own, but its third-quarter results support the move: revenue rose 78.5% from a year earlier to $197.1 million.
- Analysts expect Vicor’s revenue to more than double from 2025 to 2027, and the stock still trades below its five-year average forward P/E.
- The main risk is royalty revenue that has been uneven in the past, and the next test is Vicor’s fourth-quarter report early next year.
Vicor (VICR) stock is up 11% today, and the company had nothing new to say. (Its only filing was a routine 10-Q.)
Vicor got caught up in an AI-hardware rally after Meta Platforms (META) announced plans to raise up to $95 billion in stock to fund its AI infrastructure. TTM Technologies (TTMI) rose [10%] on the same news.
Meta isn’t slowing down
Meta will raise $35 billion through underwritten stock offerings now, then up to $60 billion more through an at-the-market program starting in early 2027. It expects $135 billion to $145 billion of capital spending this year, and its third-quarter capex of $34.9 billion already left its free cash flow negative.
Meta is selling stock rather than spend less. For the companies whose hardware fills those data centers, that’s about as good as it gets.
TTM shows what that spending looks like for a supplier. Its data center and networking sales more than doubled from a year earlier in the third quarter (up 115%), and it guided for $6.5 billion to $6.75 billion of 2027 sales, close to 50% above its 2026 outlook. Today’s gain makes back part of the drop of more than 20% that followed its Oct. 22 report, when data-center sales fell short of management’s guidance.
TIKR tracks 4 analysts on Vicor. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Vicor, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Vicor’s Analyst Ratings
Vicor’s numbers back it up
Vicor reported two days before TTM, and its quarter was even stronger. Third-quarter revenue rose 78.5% from a year earlier to $197.1 million, gross margin climbed to 68.3% from 57.5%, and earnings per share more than doubled to $1.33.
In nine months, Vicor has matched all of 2025’s revenue. And analysts expect revenue to more than double from 2025 to 2027.
Nothing in Meta’s news points to lower numbers.
The stock isn’t expensive by its own standards, either. It traded at 32x forward earnings at Friday’s close and is closer to 35x after today’s jump…
…well below its five-year average of 50x, and about a third of the 101x it hit at the end of June.
Higher royalty revenue drove part of the jump from the second quarter, Vicor’s 10-Q says, and royalties have been uneven before: the year-ago quarter included a catch-up payment that didn’t repeat.
My take: Vicor’s rally came from Meta’s news, but its own numbers say the gain is deserved. Of course, a stock that rises on someone else’s spending plans can fall on them too, so Vicor’s fourth-quarter report early next year is the one to watch.
So what is Vicor stock actually worth?
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