What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East sent crude oil prices soaring, stoking fears of resurgent inflation.
The price for Brent crude, the international benchmark, leaped over 6% to $82.57 a barrel amid an escalating war with Iran, which has threatened to block the Strait of Hormuz. This critical waterway handles about 20% of global oil flow. A sustained increase in energy prices could translate to higher inflation, potentially impacting consumer spending and corporate earnings. This scenario also complicates the Federal Reserve's path forward, as persistent inflation could delay anticipated interest rate cuts that investors have been counting on to support the economy.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Electronic Components company nLIGHT (NASDAQ: LASR) fell 6%. Is now the time to buy nLIGHT? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Tutor Perini (NYSE: TPC) fell 4.8%. Is now the time to buy Tutor Perini? Access our full analysis report here, it’s free.
- Electrical Systems company Vertiv (NYSE: VRT) fell 5.1%. Is now the time to buy Vertiv? Access our full analysis report here, it’s free.
- Electrical Systems company Hubbell (NYSE: HUBB) fell 4.5%. Is now the time to buy Hubbell? Access our full analysis report here, it’s free.
- Electronic Components company Vicor (NASDAQ: VICR) fell 6.1%. Is now the time to buy Vicor? Access our full analysis report here, it’s free.
Zooming In On Vicor (VICR)
Vicor’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 10.9% on the news that the company reported fourth-quarter financial results that featured an impressive profit beat. For the fourth quarter of 2025, Vicor's revenue grew 11.5% year on year to $107.3 million, meeting Wall Street's expectations. However, the company posted a GAAP profit of $1.01 per share, which was substantially better than the analyst consensus estimate of $0.37. The strong bottom-line performance was driven by expanding margins, with the company's operating margin increasing to 14.6% from 10% in the same quarter last year.
Vicor is up 68.7% since the beginning of the year, and at $197.12 per share, it is trading close to its 52-week high of $209.19 from March 2026. Investors who bought $1,000 worth of Vicor’s shares 5 years ago would now be looking at an investment worth $2,092.
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