Why did the report of the semiconductor manufacturer Vicor cause such a strong reaction?

Shares of Vicor Corporation (VICR) received a solid positive impulse after the report’s publication for the second quarter of 2022. During the week, the growth of VICR quotations amounted to 28% to $67.36 at auction on July 25. The market capitalization was $2.54 billion. Revenue for the last quarter ended June 30, increased by 7.1% year-on-year to $102.2 million. Net income was $10.6 million, or $0.24 per diluted share, compared to $19.4 million and $0.43 a year earlier. The stock of cash and equivalents amounted to $207.6 million. 

Thus, in numbers, Vicor showed moderate growth with some deterioration in profitability. However, investors assessed the report positively. The decrease in profit is due to the temporary factor of problem due to supply chains and a shortage of individual components. At the same time, the new promising Vicor products showed a consistent sales growth of 28%. The company continues to create vertically integrated production, which should reduce costs and risks of new supply chain problems in the future. 

Vicor specializes in integrated power electronics modules, including electric vehicles and data centers. Demand for such solutions is growing, and Vicor’s order book (backlog) exceeded $400 million in the second quarter. Vicor is expanding production to meet the demand existing production facilities cannot cope with in 2022. The company launched a new plant in the United States, which made it possible to reduce logistics costs and get rid of import duties. At the American plant, Vicor produces the most advanced and promising modules for systems with elements of artificial intelligence and mobile technology.