Is Vicor Stock Worth Buying Before Its Second Fab Exists

Vicor (VICR) stock has more than quadrupled over the past year, yet at about $224 it sits roughly 41% below its 52-week high. The opportunity is plain: demand for its power modules, from AI data centers to defense, is filling its first chip fab. The catch is that the growth you would pay for depends on new fabs whose sites Vicor only bought in September.

Is Vicor Running Out Of Room To Grow?

It is getting close. The CEO says Vicor's chip fab in Andover is nearing full capacity utilization. Until a second fab comes up, Vicor will be very selective in its engagements.

The orders are there. One-year backlog closed June at $379.7 million, about four-fifths of its trailing revenue.

The analysts who cover Vicor have not let the subject go. In its second-quarter 2026 earnings call, 7 of the 15 analyst questions touched on whether Vicor can make enough to meet its demand, from 4 different analysts. The same subject drew 10 questions in the first-quarter 2026 call.

Can Andover Alone Carry Vicor To Its Revenue Goal?

Not to that goal, and management says so. Its long-term goal is $2.5 billion of revenue, more than five times the $0.47 billion Vicor brought in over the past twelve months. The CEO has said flatly that the existing fab cannot get there and that it will take a second one.

That second fab could be as much as two, potentially three times the size of the first. The first steps aim to roughly double capacity. In July, Vicor had made offers on sites and none had been taken up. In September it announced the purchase of two new properties to build out ChiP fabs.

So where is settled. When is not. Management expects the second fab to come on in late 2027 or 2028.

What Are You Paying For While The New Fabs Get Built?

At about $10.3 billion of market value, Vicor trades near 22 times its trailing revenue. A price like that likely assumes a good part of the $2.5 billion goal arrives, and that goal needs the new fabs. If you own it, can you hold through more than a year while one nearly full fab carries the product business? If you watched it run, the pullback has not made it cheap against its sales.

The nearer numbers are getting a lift from licensing. On September 21, Vicor raised its guidance for third-quarter 2026 sequential revenue growth to more than 20%, from nearly 10%. It cited royalties from a new non-exclusive license to its Vertical Power Delivery technology.

The factory also carries a cost. The CFO said moving equipment inside the first fab, to make room for new tools, added expense that weighed on product gross margin in the second quarter of 2026. The CFO said the cost may be one-time and expects product margin to lift as utilization rises.

So the opportunity is real, and it runs on a construction schedule. Watch for the size and date Vicor puts on the first steps at the new sites, and for whether product gross margin lifts as Andover fills. To weigh Vicor against other names, our five-factor stock scorecard ranks stocks on growth, profitability, stability, resilience and valuation.

So How Much Vicor Should You Hold Through The Build?

Perhaps a modest amount, sized for a long wait. If you would rather not tie your returns to one company's building schedule, the Trefis High Quality Portfolio spreads your money across a set of quality businesses. That portfolio has a track record of outpacing the three major indices.