Vicor Corporation (VICR) stock is set to surge 41.55% in pre-market trading on Wednesday, following the release of its second-quarter financial results that significantly outperformed analyst expectations. The power module manufacturer reported robust revenue growth, a substantial patent litigation settlement, and an optimistic outlook for its AI-related products.

Vicor's Q2 earnings per share reached $0.91, dramatically surpassing the consensus estimate of $0.18. Revenue for the quarter soared to $141 million, marking a 64.3% increase year-over-year and well above the analyst expectations of $96.43 million. The company's performance was bolstered by a $45 million patent litigation settlement, which contributed to the revenue increase. Additionally, Vicor saw a significant improvement in its gross margin, which rose to 65.3% from 49.8% in the same period last year, reflecting enhanced profitability and operational efficiency.

Looking ahead, Vicor's CEO, Dr. Patrizio Vinciarelli, expressed optimism about the company's future, particularly in the AI sector. He highlighted the development of high-performance ChiPs and second-generation VPD for AI applications, which are expected to increase product revenues and utilization of the company's first ChiP fab. This forward-looking statement, coupled with the company's strong financial performance and successful patent litigation outcomes, has clearly resonated with investors, driving the substantial stock price increase in pre-market trading.