Vicor raised Q3 guidance twice in nine days to above 30% growth; the ITC put Foxconn on the docket

The ITC opens the case Vicor was waiting for

Foxconn Industrial Internet, a subsidiary of Hon Hai, the world's largest contract manufacturer of electronics↗ ¹, said on October 11 that the US International Trade Commission has launched a Section 337 investigation into Vicor's patent infringement claims↗ ². Vicor's last trip through Section 337▲+1.21% — Vicor's last trip through Section 337, up 1.21 percent today ended in February 2025 with import bans on unlicensed power modules and the computing systems built around them, hitting Delta, Quanta and two Foxconn units ³. No filing in hand names the accused products; the AI exposure runs through Vicor↗'s own framing of "AI and computing systems" ³.

Nine days, two guidance raises

The rewind is short and steep. On September 16 Vicor granted a non-exclusive Vertical Power Delivery license to an unnamed AI system maker↗, its second in four months, and the stock jumped about 18% ⁴⁵. On September 21 the company raised Q3 sequential growth guidance from nearly 10% to more than 20%, citing royalties ⁴. On September 30 it raised the bar again, to more than 30% ⁴.

The same engine showed up in the Q2 numbers: revenue of $143.4 million, up 26.9% sequentially↗, including $15 million from a new license with escalating quarterly payments ⁴⁶. Backlog hit a record $380 million, up 145% year over year ⁴.

The licensing desk is the litigation desk

At Vicor, the licensing desk and the litigation desk are the same desk. Management told investors in July that new licensing agreements beyond the current base may not arrive until a second ITC case reaches final determination in 2027 ⁶. The docket Foxconn disclosed is Vicor's second run at Section 337, and by sequence and subject it appears to be the case management said it was waiting on. Vicor's February 2025 release was blunt about why OEMs sign: customers took licenses "mindful of the risk of AI and computing systems being barred from importation into the U.S." ³

The record cuts both ways

The counterweight is already on file. In that February 2025 determination, the ITC found two Foxconn affiliates, FII USA and Ingrasys Technology, hold a license to one Vicor patent through boilerplate purchase-order clauses, a finding Vicor is appealing ³. The guidance raises, meanwhile, cite royalties from licenses already signed, not from Foxconn ⁴. And insiders sold into the guided quarter: CEO Patrizio Vinciarelli sold 20,000 shares for $6.3 million on October 1, part of roughly $7.75 million of insider sales over 90 days ⁷, alongside $6.2 million sold by a 10% holder↗ ⁸.

October 20 is the tell

Shares opened at $266.07 on Friday, about 30% below the 52-week high of $382.65, at 85 times earnings against a $391.67 consensus target↗ ⁷. The Q3 print lands October 20 ⁴. The tell is the royalty line: if licensing revenue steps up again with margins intact, the annuity compounds; if it stalls, the next payment is a court date in 2027.