VICR

The Zacks Electronics - Miscellaneous Components industry is benefiting from rising AI infrastructure investments driving demand for advanced power delivery, high-speed interconnects, and connectivity solutions. Despite underperforming the S&P 500 over the past year, the industry ranks #54 among Zacks industries with positive earnings outlook. Key players like Vicor, TE Connectivity, and OSI Systems are well-positioned to capitalize on AI data center expansion, grid modernization, and aerospace/defense demand, though geopolitical tensions and capacity constraints pose headwinds.

Vicor Corporation (VICR) shares gained 4.5% following strong third-quarter 2026 results, with revenues surging 78.5% year-over-year to $197.11 million. The company benefited from robust AI-driven demand, with Advanced Products revenues increasing 47.5% sequentially and royalty revenues jumping 206.6% year-over-year to $66.6 million. The order backlog increased 166% year-over-year to $406 million, and the company is expanding manufacturing capacity with two new facilities expected to increase capacity nearly fivefold.

Vicor (VICR) is positioned as a key beneficiary of the AI infrastructure boom, developing efficient power conversion modules for next-generation data centers. The company reported exceptional Q3 results with 78.5% YoY revenue growth, expanding margins, and a $406M order backlog. Despite a 46% correction from highs, analysts project 41% revenue growth this year and 61% next year, earning the stock a Zacks Rank #1 (Strong Buy) rating.