Vicor (VICR)

Data centre high-energy use is causing demand for copper, heating issues, cooling issues, water demand. This company provides a solution to lower energy consumption. The space is worth looking at, as is this company.

Valuation is something like 93x PE. Phenomenal chart, great run. Don't own it here, but spend some time doing homework to see how this will all play out.

The currency of AI is optimizing dollars for power. US is energy-constrained, while China has a lot. Small power-conversion models that sit on top of circuit boards and feed in electricity/power. The larger the chip, the harder it is to deliver the current without wasting power. 

Represents optimization in the overall ecosystem. No dividend.

Bonus:  Cerebras Systems is IPO'ing tomorrow. Signed massive contract with OpenAI. As it ramps up, VICR will win a lot more business.

A little-known AI infrastructure company, up 660% in one year, up 20% today. They make power modules to deliver energy efficiently to microchips, key to AI and data centres. Q1 2026: revenue and EPS beat, and there's a $301 million backlog. Simply, AI racks are getting more power-hungry and chops are getting denser, so more power is needed. It trades at 25x sales and over 100x forward PE, so the market expects this to be a much bigger company. But after a 660% move, this is priced for perfection. The risk is Vicor could have the right technology, but still miss a major platform, or a major customer changes direction, watch out. Vicor has a strong AI story. Don't chase it here. If you own it, take some profits; if not, wait for a pullback.