Entering text into the input field will update the search result below

Explosive Growth From Vicor's New Products That Are Powering Cloud Servers And Supercomputers

Apr. 10, 2018 5:04 PM ETVicor Corporation (VICR)CRAY, GOOG, IBM, NVDA540 Comments
John Dillon profile picture
John Dillon


  • Vicor's growing backlog was achieved by their new products being designed into servers from Alphabet, IBM, Nvidia, Cray and Pezy.
  • Nvidia’s newest V100 GPU's use the Vicor power converters and these converters are enabling higher performance computers.
  • The IBM Power 9 Open Power servers are using Vicor converters.
  • Alphabet is using Vicor converters in their data center servers.
  • As a result of the success of Vicor's new products, Vicor is on the cusp of a long-term secular growth path.

Vicor (NASDAQ:VICR) is an under-followed small-cap company that has released a myriad of new products that are rapidly gaining traction with top tier data center and supercomputer customers. This traction will lead to explosive incremental revenue for the foreseeable future. With a highly leveraged business model the EPS will follow.

Even though the share price has run from $8.00 a share when my first article was posted in August 2014 to a current price of around $28, this stock is headed much higher as the investment community learns about Vicor's growth story and enabling technology.

High-Profile Customers

Vicor's is powering the most advanced computers and data centers In the world.

Vicor (VICR) was driven to new highs last week by the revelation that their new Power on Package, POP, is powering the new Nvidia (NVDA) GPU's. The picture below, from Vicor's twitter feed, shows two Vicor gold Modular Current Multipliers (MCMs) right next to the GPU and a third gold converter to the left of the GPU, along with a Vicor Picor chip on the bottom right hand corner with the new Nvidia GPU.

The Vicor POP converters are enabling server and supercomputer companies who use the Nvidia V100 to achieve higher performance. By freeing up pins on the Nvidia GPU, the new V100's have more interconnects that allow more data to be pumped in and out of the processors. Processors and memory can be placed closer together, reducing the distance the data needs to travel, again enabling higher performance computers. I have a detailed explanation of how this is possible in my prior Seeking Alpha article.

The Vicor converters, because of their high efficiency and their placement in close proximity to the GPU, significantly reduces energy loss do to voltage conversion and transmission losses. At the Nvidia GPU Technology Conference, Nvidia stressed over

This article was written by

John Dillon profile picture
I am a Vice President in a small high-tech company with over 35 years of investing in small-cap stocks. My specialty is small-cap tech companies, and I seek out companies with tremendous growth opportunities that have significant insider ownership and a solid balance sheet. My goal is to find these companies in the early stages of growth and at a reasonable price.For fun, I race bicycles, paint, and try to play the piano. I like to sing Karaoke but not well.

Analyst’s Disclosure: I am/we are long VICR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.