Vicor Shares Rise 11% Following AI Power Delivery Technology Licensing Agreement

Vicor (NASDAQ:VICR) shares climbed 11% on Thursday morning after the company announced a non-exclusive licensing agreement for its Vertical Power Delivery (VPD) technology with a leading artificial intelligence original equipment manufacturer (OEM).

The agreement allows the unnamed manufacturer to purchase VPD modules covered by Vicor’s patents from suppliers that do not hold their own licences.

Vicor’s technology is designed to deliver power to high-performance AI computing and networking processors, enabling them to operate at high current densities using low-voltage power supplies.

The company did not disclose the identity of the licensee or the financial terms of the agreement.

Licensing Agreement Expands Sourcing Options for AI Hardware Manufacturers

Under the arrangement, the OEM can obtain VPD solutions from global suppliers whose multi-cell voltage regulators or integrated voltage regulators are incorporated into multilayer systems.

The manufacturer can also purchase VPD products directly from Vicor.

According to the company, customers that source products from Vicor may qualify for substantial discounts on licensing royalties associated with commodity VPD modules purchased from unlicensed suppliers.

Vicor said its licensing approach is intended to provide equipment manufacturers and hyperscale computing operators with greater flexibility in sourcing components.

The arrangement also offers access to multiple suppliers, additional supply chain redundancy and Vicor’s manufacturing facilities in the United States.

Vertical Power Delivery Targets AI Processor Power Requirements

Vicor’s VPD technology consists of a multi-cell converter and a vertical power delivery network.

The system is designed to address what the company calls the “last inch problem” associated with conventional Lateral Power Delivery, in which delivering power across the final distance to a processor presents technical challenges.

Vertical Power Delivery aims to improve power distribution for processors that require high current at low voltage, including those used in AI computing and advanced networking systems.

Vicor said the technology is protected by patents developed through approximately a decade of research in the United States.

The company is seeking to make the technology available through both direct product sales and licensing arrangements with equipment manufacturers.

Vicor Offers Early Licensing Incentives

Vicor indicated that as high-performance computing and networking processors increasingly adopt Vertical Power Delivery, OEMs and hyperscale operators without licences may need agreements covering its patented technology to secure their supply chains.

The company said its licensing programme offers lower royalty rates to early adopters.

The newly announced agreement expands the potential sourcing options available to the unnamed AI equipment manufacturer while allowing Vicor to license its intellectual property for use in products supplied by other companies.

Vicor has not provided revenue projections or disclosed expected royalty income from the agreement.

Vicor Corporation stock price