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Diodes
(NASDAQ:DIOD)
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Rating:69Neutral
Price Target:
$99.00
▲(9.34% Upside)
Action:Downgraded
Date:08/27/26
DIOD earns a solid but not top-tier score driven primarily by strengthening fundamentals and an exceptionally conservative balance sheet, reinforced by upbeat guidance and improving margins in the latest earnings call. The score is held back by weak near-term price trend indicators and a high P/E multiple with no dividend yield support, which raises execution expectations.
Positive Factors
Automotive and computing growth
Strong automotive and computing demand, including AI-server design wins, supports durable product adoption and higher system content. These markets can broaden Diodes’ growth base beyond more cyclical consumer and communications applications.
Negative Factors
Margins remain below prior-cycle levels
Although margins are recovering, profitability remains materially below prior-cycle peaks and has been volatile. Sustained improvement depends on product mix, utilization and pricing, leaving earnings power exposed if recovery slows or commodity products remain competitive.
Read all positive and negative factors
Positive Factors
Negative Factors
Automotive and computing growth
Strong automotive and computing demand, including AI-server design wins, supports durable product adoption and higher system content. These markets can broaden Diodes’ growth base beyond more cyclical consumer and communications applications.
Read all positive factors
Diodes Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Shows how Diodes' revenue is split across regions (for example, Americas, Asia-Pacific, EMEA). The regional mix highlights where demand and growth are coming from, reveals exposure to supply-chain or trade risks and currency swings, and helps assess whether growth is broad-based or concentrated in specific markets.
Shows how Diodes' revenue is split across regions (for example, Americas, Asia-Pacific, EMEA). The regional mix highlights where demand and growth are coming from, reveals exposure to supply-chain or trade risks and currency swings, and helps assess whether growth is broad-based or concentrated in specific markets.
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The Fly
The FlyDiodes (DIOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.23B
Dividend YieldN/A
Average Volume (3M)658.09K
Price to Earnings (P/E)48.8
Beta (1Y)1.96
Revenue Growth17.80%
EPS Growth36.28%
CountryUS
Employees7,989
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.88
Shares Outstanding46,051,704
10 Day Avg. Volume560,810
30 Day Avg. Volume658,086
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)1.22
Price to Sales (P/S)1.54
P/FCF Ratio16.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$162.50Price Target Upside79.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.7
Revenue Forecast (FY)$1.78B
Diodes Business Overview & Revenue Model
Company Description
Diodes Incorporated operates globally, specializing in the development, production, and distribution of standard, application-focused semiconductor components across the discrete, logic, analog, and mixed-signal sectors. The company primarily conc...
How the Company Makes Money
Diodes makes money primarily by selling semiconductor components and integrated circuits, generating revenue on a per-unit basis from shipment volume multiplied by average selling prices, with profitability influenced by product mix (higher-value ...
Diodes Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented strong top-line growth, margin expansion, improving profitability and cash generation, supported by record POS, design wins in automotive and AI/server markets, and an accretive acquisition that broadens the addressable market. Notable risks include reliance on an investment gain in GAAP results, pockets of supply constraints, YoY EBITDA margin percentage compression, elevated inventory to support lead times, and softness in communication/consumer end markets. On balance, the positive operational momentum and strong guidance materially outweigh the highlighted challenges.Positive Updates
Strong Revenue Growth
Q2 revenue of $445.5M, up 22% year-over-year (from $366.2M) and up 10% sequentially (from $405.5M). Management forecasts Q3 revenue of ~ $510M (+30% YoY, +14% QoQ at midpoint). This is the fifth consecutive quarter of double-digit YoY growth.
Negative Updates
One-Time Investment Gains Inflating GAAP Results
Q2 included approximately $20M unrealized gain on investments (other income ~$24.7M total), and non‑GAAP results exclude an $18.7M gain — indicating part of GAAP income improvement was driven by investment gains rather than solely operating performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Q2 revenue of $445.5M, up 22% year-over-year (from $366.2M) and up 10% sequentially (from $405.5M). Management forecasts Q3 revenue of ~ $510M (+30% YoY, +14% QoQ at midpoint). This is the fifth consecutive quarter of double-digit YoY growth.
Read all positive updates
Company Guidance
Management guided third‑quarter revenue of approximately $510 million ±3% (midpoint implying ~30% year‑over‑year growth and ~14% sequential growth), GAAP gross margin of ~35% ±1% (calling for ~190 basis points of sequential gross‑margin improvement), and non‑GAAP adjusted EPS of $1.05 ±$0.10, while citing an expected ~2.8x year‑over‑year improvement in non‑GAAP earnings and reaffirming three‑year targets of $2.0 billion in annual revenue and >$4 of non‑GAAP EPS. They also said the proposed ElevATE acquisition would be immediately accretive, add about $50 million of revenue in the first 12 months and target >20% revenue CAGR over four years with gross margins well above the corporate average; for context they noted Q2 results of $445.5M revenue (up 22% YoY, 10% sequential), 33.1% gross margin (up 160 bps YoY), EBITDA of $83.5M (18.7% of revenue), free cash flow of $34.8M, cash and short‑term investments of ~$442M, total debt of ~$40M, capex of $33.6M (7.5% of revenue, within a 5–9% target), inventory ≈152 days, and an expected full‑year tax rate of ~18% ±3%.Diodes Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.63B | 1.48B | 1.31B | 1.66B | 2.00B | 1.81B |
| Gross Profit | 518.78M | 462.44M | 435.86M | 658.18M | 827.24M | 670.36M |
| EBITDA | 212.29M | 230.48M | 202.15M | 420.96M | 532.02M | 445.02M |
| Net Income | 86.09M | 66.14M | 44.02M | 227.18M | 331.28M | 228.76M |
Balance Sheet | ||||||
| Total Assets | 2.58B | 2.45B | 2.39B | 2.37B | 2.29B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 439.98M | 377.03M | 316.13M | 325.63M | 343.79M | 370.14M |
| Total Debt | 70.44M | 95.61M | 91.70M | 98.36M | 213.67M | 334.55M |
| Total Liabilities | 561.06M | 509.69M | 517.33M | 557.98M | 705.39M | 891.77M |
| Stockholders Equity | 1.95B | 1.88B | 1.80B | 1.74B | 1.51B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 142.51M | 137.15M | 46.41M | 130.15M | 180.77M | 197.35M |
| Operating Cash Flow | 250.04M | 215.51M | 119.44M | 280.91M | 392.50M | 338.54M |
| Investing Cash Flow | -112.76M | -116.18M | -118.04M | -158.32M | -265.26M | -144.23M |
| Financing Cash Flow | -26.65M | -54.81M | -19.34M | -144.72M | -125.71M | -158.44M |
Diodes Technical Analysis
Neutral
90.54
Price Trends
93.49
Negative
99.45
Negative
79.82
Positive
Market Momentum
-1.42
Positive
48.82
Neutral
54.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIOD, the sentiment is Neutral. The current price of 90.54 is below the 20-day moving average (MA) of 94.97, below the 50-day MA of 93.49, and above the 200-day MA of 79.82, indicating a neutral trend. The MACD of -1.42 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 54.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DIOD.
Diodes Risk Analysis
Diodes disclosed 59 risk factors in its most recent earnings report. Diodes reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diodes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.12B | 70.20 | 10.96% | ― | 18.01% | 161.14% | |
69 Neutral | $8.69B | 7.47 | 32.04% | 0.78% | 69.56% | 260.84% | |
69 Neutral | $4.23B | 48.82 | 4.53% | ― | 17.80% | 36.28% | |
68 Neutral | $3.55B | 38.36 | 8.91% | ― | -3.35% | -38.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $2.82B | 110.85 | 3.72% | 1.69% | 1.56% | -23.60% | |
54 Neutral | $4.88B | 122.64 | 1.55% | 1.26% | 13.38% | ― |
* Technology Sector Average
DIOD
Diodes
90.92
37.87
71.39%
ACLS
Axcelis Technologies
119.17
36.09
43.44%
FORM
Formfactor
109.86
80.43
273.29%
POWI
Power Integrations
50.46
6.56
14.94%
SIMO
Silicon Motion
272.02
189.24
228.63%
VSH
Vishay Intertechnology
31.47
16.54
110.77%
Diodes Corporate Events
Business Operations and StrategyM&A Transactions
Diodes completes ElevATE acquisition, expanding ATE portfolio
Positive
Aug 27, 2026
On August 27, 2026, Diodes Incorporated completed its $250 million all-cash acquisition of ElevATE Semiconductor Inc., a San Diego-based fabless designer of low-power analog and mixed-signal ICs for the automated test equipment market. ElevATE now...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Diodes Raises Capital with Convertible Notes and Hedging
Positive
Aug 18, 2026
On August 12, 2026, Diodes amended its senior credit facilities, extending the revolving credit maturity to August 12, 2031, adjusting pricing, and revising financial and negative covenants, creating more flexibility to layer in new indebtedness. ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Diodes posts strong Q2 growth and margin expansion
Positive
Aug 12, 2026
On August 5, 2026, Diodes reported preliminary second-quarter 2026 results showing revenue of $445.5 million, up 22% year-over-year and 10% sequentially, with record global point-of-sale and automotive revenue reaching 21% of product sales. Cost a...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Diodes posts strong Q2 results, projects continued growth
Positive
Aug 5, 2026
In the second quarter ended June 30, 2026, Diodes reported revenue of $445.5 million, up more than 20% year-over-year and 10% sequentially, with GAAP gross margin improving to 33.1%. GAAP net income rose to $46.6 million, while non-GAAP adjusted n...
Executive/Board Changes
Diodes Appoints Veteran Executive Evan Yu to Board
Positive
Jul 28, 2026
On July 28, 2026, Diodes Incorporated announced that seasoned semiconductor executive Evan Yu has been elected to its Board of Directors as an independent director, effective August 1, 2026. The company highlighted Yu’s extensive leadership ...
Business Operations and StrategyM&A Transactions
Diodes to Acquire ElevATE Semiconductor in Cash Deal
Positive
Jul 15, 2026
On July 10, 2026, Diodes entered into a definitive Agreement and Plan of Merger to acquire San Diego-based ElevATE Semiconductor, a fabless IC specialist serving the automated test equipment market, in an all-cash transaction anchored by a $250 mi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.