---
title: "Delta Electronics set a record NT$197.1 billion quarter; Vicor's ITC case targets the same AI server modules"
description: "Delta Electronics printed a second straight record quarter on AI server power, yet profit grew slower than sales, four banks cut its Thai unit's targets and the shares fell 9.8%. On the same modules, Vicor's royalty take is built to rise as its US trade case advances: the question for AI-power investors is no longer demand, it is who keeps the margin."
publisher: "The Inference"
section: "Data Center"
published: 2026-10-30T18:07:07.570Z
modified: 2026-10-30T18:07:07.570Z
canonical: https://theinference.org/article/delta-electronics-set-a-record-nt-197-1-billion-quarter-vicor-s-itc-case-targets-the-same-ai-server-modules
language: en
keywords: "Delta Electronics, Vicor, AI Data Centers, Earnings, Patent Licensing"
---

# Delta Electronics set a record NT$197.1 billion quarter; Vicor's ITC case targets the same AI server modules

> Delta Electronics printed a second straight record quarter on AI server power, yet profit grew slower than sales, four banks cut its Thai unit's targets and the shares fell 9.8%. On the same modules, Vicor's royalty take is built to rise as its US trade case advances: the question for AI-power investors is no longer demand, it is who keeps the margin.

[Delta Electronics](https://theinference.org/markets/companies/delta-electronics), the Taiwanese power-and-thermal supplier inside AI servers and data centers, posted [a second straight record quarter](https://www.tokenpost.com/news/business/43288) this week: NT$197.1 billion of revenue, up 31% year over year [1]. Profit rose more slowly than sales, and gross margin slipped to 34.1% [1][2]. Four banks cut their targets on the company's Thai listing the same week, and the Taipei shares closed down 9.8% [3][4]. The buildout is still handing Delta volume; the week's verdict was about Delta's margin.

## Demand is delivering volume, and it is concentrating

Delta builds the server power shelves and liquid cooling that AI racks run on, and it is working with [Nvidia](https://theinference.org/markets/companies/nvidia) on the 800-volt DC architecture those processors will draw from [3]. When cloud operators build data centers, the power has to flow through this equipment, and the quarterly mix now shows it: the power-and-components division grew 40% year over year and now carries most of Delta's sales, with infrastructure, the data-center systems business, up 25% [1]. Record revenue is exactly what an AI buildout should print for its power supplier.

*Chart: **Power and components now carry Delta's growth** Pie chart of Delta Electronics Q3 2026 revenue by division: power and components NT$105.9 billion, infrastructure NT$65.9 billion, automation NT$15.9 billion, other NT$9.4 billion*

*Delta Electronics Q3 2026 revenue by division, NT$ billions; 'Other' is the remainder of the NT$197.1 billion total. Source: TokenPost [1]. [1]*

## The supplier is absorbing the cost of getting racks built

The squeeze shows in the Thai listing, Delta Electronics Thailand, which consolidates much of the group's manufacturing. [Operating margin fell to 10.4% from 14.1% a year earlier](https://www.kaohooninternational.com/markets/593376) as selling costs jumped 69% [4]. The same quarter absorbed a THB 1.9 billion inventory provision, up from THB 0.8 billion in the second quarter [5], plus freight, US customs duties and a THB 1.4 billion charge under the OECD's Pillar Two global minimum tax [4]. Thai net profit of THB 7.76 billion missed the Bloomberg consensus of THB 8.73 billion [4].

*Chart: **Four banks cut their Delta Thailand targets after the results** Range chart of four banks' target prices for Delta Electronics Thailand before and after 3Q26 results: Macquarie 370 to 290, JPMorgan 360 to 320, Citi 367 to 315, UBS 320 to 300 THB*

*Analyst target prices for Delta Electronics (Thailand) before and after 3Q26 results, THB per share. Source: Kaohoon International [4]. [4]*

Macquarie, UBS, JPMorgan and [Citi](https://theinference.org/markets/companies/citigroup) cut their targets [4], and Bualuang [cut its 2026 core-profit forecast by 18%](https://www.kaohooninternational.com/markets/593338) [5]. The bull's best rebuttal is already in the record: through nine months, revenue grew 37% and net profit 62%, so profit is still outgrowing sales on the year [2].

The third quarter is the inflection to watch, not an established trend; the gap came from a lower gross margin and declining nonoperating income [1][2]. Bualuang still expects fourth-quarter profit to recover as supply constraints ease and backlog ships [5]. That recovery call, not the demand line, is the test.

## The licensor's rates rise as the case advances

[Vicor](https://theinference.org/markets/companies/vicor)'s royalty quarter is not the news: [the $66.6 million figure](https://theinference.org/article/delta-faces-vicor-at-the-us-itc-a-second-time-with-royalties-now-66-6-million-a-quarter) and the interest from two hyperscalers, the largest cloud operators, were already on the record last week [6][7]. What moved since is the machinery around that line. On October 9 the US International Trade Commission, the US trade agency that can bar imports of infringing products, [instituted Vicor's second Section 337 investigation](https://www.usitc.gov/news_releases), this one over vertical power delivery, the converter stage that steps voltage down right beside the AI processor [8].

The named respondents include Delta Electronics, Infineon, Luxshare, [Monolithic Power Systems](https://theinference.org/markets/companies/monolithic-power-systems), [Flex](https://theinference.org/markets/companies/flex), [Celestica](https://theinference.org/markets/companies/celestica), Quanta and [Foxconn](https://theinference.org/markets/companies/foxconn-hon-hai-precision-industry) [9], and Vicor [has asked for a limited exclusion order](https://markets.businessinsider.com/news/stocks/usitc-institutes-investigation-of-vertical-power-delivery-vpd-modules-and-computing-systems-infringing-a-vicor-patent-1036616308) that would keep infringing modules out of the United States [9]. Vicor's release also states that any equipment maker or cloud operator whose systems use VPD parts from the respondents will need a license to import them [9].

Management now treats royalties as recurring: [at least $43 million in Q4](https://finance.yahoo.com/markets/stocks/articles/vicor-corp-vicr-q3-2026-050043145.html) [7], with stage-3 license rates rising roughly 5% a month once an ITC investigation is under way [7][9]. Vicor's consolidated gross margin stands at 68.3% [7]. Its take rises with enforcement while Delta's margin absorbs the costs of getting racks built.

*Chart: **Vicor's gross margin has climbed 18 points as licensing took hold** Line chart of Vicor's consolidated gross margin by quarter from Q2 2024 at 49.8% to Q3 2026 at 68.3%, rising sharply from mid-2025 as royalty revenue took hold*

*Vicor consolidated gross margin by quarter, percent of revenue, Q2 2024 to Q3 2026, as reported in its SEC filings. The Q3 2026 figure of 68.3% includes $66.6 million of royalty revenue. Source: Vicor quarterly figures from its SEC filings, retrieved 30 October 2026 [10]. [10]*

## Where the margin settles

In one quarter Delta's Thai unit absorbed an inventory provision, freight, customs duties and a global minimum tax [4][5]; Vicor's license rates are built to climb as its US case advances [7][9]. The buildout is real, and the builders who turn power engineering into deployed racks deserve the reward for it. But the quarter showed where the bargaining power sits: the supplier's costs are episodic, while a settled royalty rate, or an exclusion order, would move a slice of every AI rack's margin permanently.

Holders of Delta, and by read-across Monolithic Power Systems, a respondent in the same case [9], and [Vertiv](https://theinference.org/markets/companies/vertiv), should track which side captures the next point of margin. If Bualuang's fourth-quarter recovery lands, Delta buys time; if Vicor's stage-3 escalation runs first, the take compounds [9].

## Takeaway

Demand is no longer the question for AI-power suppliers: Delta's record quarter came with falling margins and four bank target cuts, while Vicor's license rates are built to climb as its ITC case advances, so the fight on each AI rack is over who keeps the margin.

## Sources

1. [TokenPost, Delta Electronics Posts Second Straight Quarterly Revenue Record, 29 October 2026](https://www.tokenpost.com/news/business/43288)
2. [TradingView/Quartr, Delta Electronics: YT3Q26 net profit rose 62% as revenue grew 37% YoY, 29 October 2026](https://www.tradingview.com/news/urn:summary_document_slides:quartr.com:4268538:0-delta-electronics-yt3q26-net-profit-rose-62-as-revenue-grew-37-yoy/)
3. [Yahoo Finance Canada, Delta Electronics, Inc. (2308.TW) Stock Price, News, Quote & History, accessed 30 October 2026](https://ca.finance.yahoo.com/quote/2308.TW/)
4. [Kaohoon International, Top Investment Banks Cut Delta Thailand's Target Price After 3Q26 Earnings Release, 28 October 2026](https://www.kaohooninternational.com/markets/593376)
5. [Kaohoon International, Bualuang Anticipates Profit Recovery for DELTA in 4Q26 as Supply Constraints Ease, 28 October 2026](https://www.kaohooninternational.com/markets/593338)
6. [IAM, Vicor royalty revenue hits $66.6 million as AI patent licensing expands, 23 October 2026](https://www.iam-media.com/index.php/article/vicor-royalty-revenue-hits-666-million-ai-patent-licensing-expands)
7. [GuruFocus via Yahoo Finance, Vicor Corp (VICR) Q3 2026 Earnings Call Highlights, 21 October 2026](https://finance.yahoo.com/markets/stocks/articles/vicor-corp-vicr-q3-2026-050043145.html)
8. [United States International Trade Commission, News Releases: USITC Institutes Section 337 Investigation of Certain Vertical Power Delivery Systems, Components Thereof, and Computing Systems Containing the Same, News Release 26-145, 9 October 2026](https://www.usitc.gov/news_releases)
9. [Markets Insider / GlobeNewswire (Vicor press release), USITC Institutes Investigation of Vertical Power Delivery (VPD) Modules and Computing Systems Infringing a Vicor Patent, 12 October 2026](https://markets.businessinsider.com/news/stocks/usitc-institutes-investigation-of-vertical-power-delivery-vpd-modules-and-computing-systems-infringing-a-vicor-patent-1036616308)
10. [Vicor, quarterly figures from its SEC filings, retrieved 30 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000751978)


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Delta Electronics set a record NT$197.1 billion quarter; Vicor's ITC case targets the same AI server modules — The Inference. Canonical: https://theinference.org/article/delta-electronics-set-a-record-nt-197-1-billion-quarter-vicor-s-itc-case-targets-the-same-ai-server-modules