Vicor Corp (NASDAQ: VICR) shares rose 10.84% to $197.36 on Friday after the company announced plans to expand its U.S. manufacturing capacity. The gain outpaced broader market strength, with the Industrials sector up 0.99% and the S&P 500 rising 1.00%.

Expansion Targets AI Demand

Vicor is acquiring a 334,000-square-foot building on 66 acres in Merrimack, New Hampshire, plus 54 acres in Hooksett. The sites will support ChiP Fab-2 and Fab-3, with a combined footprint of nearly one million square feet.

The expansion adds capacity beyond Vicor’s 320,000-square-foot ChiP Fab-1 in Andover, Massachusetts, which is nearing full utilization. ChiP Fab-2 has a one-year lead time to initial deployment.

Vicor said the added capacity will help support OEMs and hyperscalers while increasing U.S.-based sourcing. The company stated its Vertical Power Delivery technology is designed for advanced AI applications constrained by multi-phase and integrated voltage regulators.

Broadcom CEO Hock Tan recently said electricity availability, transformers, and data-center readiness could limit how quickly AI capacity comes online.

What the Numbers Show

Vicor entered the expansion with a growing backlog. Second-quarter backlog reached $380 million, up 26% sequentially and 145% from a year earlier. Cash and cash equivalents increased 12.2% sequentially to about $453.6 million as of June 30.

The significant sequential growth in backlog alongside rising cash reserves suggests strong near-term demand visibility for the company’s power technology components.

Technical Setup

Friday’s rally is improving VICR’s short-term setup, though shares remain below key moving averages. The stock trades 2.7% below its 20-day SMA and 11.3% below its 50-day SMA.

VICR also remains 3% below its 200-day SMA and 24.8% below its 100-day SMA, leaving significant overhead resistance. MACD is above its signal line with a positive histogram, indicating easing selling pressure. However, the 20-day SMA remains below the 50-day SMA, keeping the near-term trend bearish.

A break below support could weaken the recovery.

Vicor Corporation announced a new $150 million share repurchase program. The authorization allows the company to return capital to shareholders through open-market purchases.

Capital Return Strategy

The board of directors approved the buyback initiative, reflecting its assessment of the company's financial flexibility. This action follows standard corporate governance procedures for capital allocation decisions.

The program does not obligate Vicor to acquire a specific number of shares. Repurchases will be executed at management's discretion based on market conditions and liquidity requirements.

What the Numbers Show

The $150 million commitment represents a significant allocation of cash reserves. By prioritizing share repurchases over other uses of capital, such as debt reduction or dividend increases, management signals a focus on enhancing per-share metrics for existing holders.