Vicor Corporation

Foxconn Industrial Internet announced that the U.S. International Trade Commission declared on October 9 local time that it has formally launched a Section 337 investigation into patent infringement claims filed by Vicor Corporation of the United States. Vicor alleges that Foxconn Industrial Internet and its controlled subsidiaries infringed one of its patents for a vertical power delivery system. Foxconn Industrial Internet said that after an internal review, the products involved in this investigation are still in the internal validation and evaluation stage, and will not have a material impact on the company's current production, operations, or financial performance.

Vicor Corporation is drawing investor attention as a supplier of power systems for AI processors, with its one-year backlog reaching $379.7 million, up 26% from the previous quarter, and management guiding to more than $600 million of revenue in 2026. The company has licensed its Vertical Power Delivery patents to four major OEMs and hyperscalers, and a September agreement with another AI OEM pushed third-quarter revenue guidance higher again. Management said its first chip fab is approaching capacity and that hitting its long-term $2.5 billion revenue target will require a second fab, prompting a September acquisition of sites in New Hampshire for Fab-2 and Fab-3, with Fab-2 carrying roughly a one-year lead time to initial deployment. Second-generation VPD systems are expected to enter broader customer engagement, with production ramps potentially beginning in late 2027, and the company says the new generation can reach 3 amps per square millimeter today and move toward 5. The stock nearly doubled in September and now trades at a forward P/E of 47.17x, while competitors including Monolithic Power Systems, Texas Instruments, Analog Devices and Navitas press ahead on 800V architectures.