Vicor gains as Needham becomes 'incrementally more positive' on AI demand
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Vicor (NASDAQ:VICR) shares rose nearly 5% on Monday after investment firm Needham said it became "incrementally more positive" on the company's near and long-term results due to the demand for artificial intelligence.
Analyst Quinn Bolton noted that the company's recent shareholder meeting provided a confidence boost, as rising interest in AI services, notably ChatGPT, which rely on GPUs from companies like Nvidia (NASDAQ:NVDA) to train large language models, should boost the company's sales.
"We believe recent upside in NVIDIA's A100/A800 GPU demand should benefit Vicor in the near-term," Bolton wrote in an investor note.
Over the next one to two years, Bolton, who has a buy rating and boosted his per-share price target on Vicor (VICR) to $65, said it's likely that some customers of current generation AI processors will introduce new SKUs with higher performance based on Vicor's (VICR) Factorized Power architecture.
"In our opinion, management's tone around the company's positioning at key customers has improved since earlier this year," Bolton added. We also believe Vicor is well positioned over the next 1-2 years to supply 48V Factorized Power solutions for custom-designed AI processors developed by leading hyperscalers."
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