Why Vicor Shares Powered Off Today
Shares of power module specialist Vicor (NASDAQ: VICR) went dark on Wednesday afternoon, trading 21.4% lower as of 3:40 p.m. ET. Analyst firm CJS Securities downgraded the stock from market outperform to market perform. The analyst cited pictures showing a new artificial intelligence (AI) chip from Nvidia (NASDAQ: NVDA) that doesn't feature the distinctive golden boxes of Vicor power conversion chips that are found in earlier versions.
Image source: Getty Images.
According to CJS analyst Jonathan Tanwanteng, Nvidia is Vicor's largest customer. Half of the growth in advanced power system sales may be lost if the graphics-chip designer removed these power control modules from its latest AI products. Tanwanteng also noted that Nvidia's hand might have been forced by limited supplies of Vicor's advanced products, and that high demand from other customers also could have played a part.
Source Fool.com
