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Diodes Inc

Diodes Inc

DIOD
$95.01USD↑+3.65%+3.35 today

MARKET CAP

4.4B

P/E (TTM)

51.4x

FWD P/E

—

DAY RANGE

$91 – $96

52W RANGE

$42
$126

AI Summary

Stalk
Sell NowMedium

DIOD remains under the 50-day SMA within a Stage 4 corrective regime and an active Lower Highs & Lower Lows pattern, signaling supply dominance. The recent rally above the 9- and 20-day EMAs is extended and lacks momentum conviction, while RSI sits neutral. Short-term timing is unfavorable for bullish participation, favoring sell execution into resistance near the 50-day SMA around the mid-90s. A sustained close above this level would invalidate the bearish posture.

  • ↑Q2 2026 revenue grew 22% YoY to $445.5M; Q3 guided ~$510M (30% YoY)
  • ↑ElevATE deal to contribute ~$50M first-year revenue, boosting ATE exposure
  • ↓Profitability remains weak, undermining sustainable return generation
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Diodes Incorporated (NASDAQ: DIOD) is a leading global manufacturer and supplier of high-quality semiconductor products, including diodes, rectifiers, and analog solutions. The company has established a strong market presence, particularly in automotive, industrial, and consumer sectors, and is aggressively capitalizing on growth trends associated with artificial intelligence (AI) and automotive electronics. Recently, Diodes has expanded its portfolio through the acquisition of ElevATE Semiconductor, aimed at enhancing its capabilities in the high-growth Automated Test Equipment (ATE) market.

Bull says

  • ↑Q2 2026 revenue grew 22% YoY to $445.5M; Q3 guided ~$510M (30% YoY)
  • ↑ElevATE deal to contribute ~$50M first-year revenue, boosting ATE exposure
  • ↑Gross margin up 160 bps YoY to 33.1%; Q3 margins targeting 35%
  • ↑Generated $34.8M free cash flow in Q2; net income $46.6M ($1.00 EPS)
  • ↑High liquidity and upward analyst revisions support growth initiatives
  • ↑Automotive revenue rose 37% YoY, now 21% of total sales

Bear says

  • ↓Profitability remains weak, undermining sustainable return generation
  • ↓Supply chain constraints risk hindering AI and automotive shipments
  • ↓Elevated short interest points to bearish sentiment and stock volatility
  • ↓Current valuation may be stretched amid muted earnings yield and growth
  • ↓Semiconductor cyclicality and geopolitical headwinds could pressure demand
  • ↓Smaller scale vs. peers limits pricing power and market share gains

Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 05-10-2025neutral

Transcript signals

Bull points

  • However, late in the quarter, we began to see some signs of demand improvement with distributor inventory levels starting to stabilize, supporting to our belief that the first quarter should be the low point and are guiding for a return to seasonal growth in the second quarter.
  • We expect gross margin to resume toward our target of 40% as we increase our factory loading by qualifying more products combined with increasing revenue growth for our higher-margin automotive and industrial market, consistent with our historical performance and our long-term growth strategy.
  • so far, our progress, internal cooperation is very good, and we do see some project ahead of our June schedule, as I can tell you at this point.

Bear points

  • As reported earlier today, first quarter revenue reflect a slower-than-expected recovery in the consumer, computing and the communication market, coupled with the typical first quarter seasonality due to the Chinese New Year holiday.
  • More broadly, the slower overall demand environment in the quarter contributed to reduced loading at our manufacturing facility, both internal production as well as from our manufacturing service agreement temporarily impact gross margins.
  • Revenue in the first quarter was down 6% sequentially and slightly below the midpoint of our guidance due to a slower recovery in the 3C market than originally expected.
Read full transcript analysis ›