Diodes (DIOD)
NASDAQ:DIOD
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Diodes
(NASDAQ:DIOD)
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Rating:71Outperform
Price Target:
$112.00
▲(18.09% Upside)
Action:ReiteratedDate:04/15/26
DIOD scores well on financial resilience (very strong balance sheet and positive cash generation) and a constructive earnings outlook with clear multi-year growth/margin targets. The main offsets are still-pressured profitability versus prior-cycle peaks and a relatively high valuation (P/E ~34.6), while technicals show strong trend strength but overbought momentum that can increase near-term volatility.
Positive Factors
De-levered balance sheet
Diodes' dramatic reduction in debt to roughly $1.4M and a growing equity base provides durable financial flexibility. Low leverage supports sustained capex for fabs, buybacks and strategic investments, reduces refinancing risk, and strengthens resilience through semiconductor cycles.
Negative Factors
Gross margin pressure from underutilization
Underloaded manufacturing capacity is a structural headwind to gross margins: management cites underloading costs as a material drag. Until utilization and manufacturing conversions improve, margin targets depend on operational execution and timing that remain uncertain over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered balance sheet
Diodes' dramatic reduction in debt to roughly $1.4M and a growing equity base provides durable financial flexibility. Low leverage supports sustained capex for fabs, buybacks and strategic investments, reduces refinancing risk, and strengthens resilience through semiconductor cycles.
Read all positive factors
Diodes (DIOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66B
Dividend YieldN/A
Average Volume (3M)504.45K
Price to Earnings (P/E)34.6
Beta (1Y)1.80
Revenue Growth13.04%
EPS Growth49.69%
CountryUS
Employees7,829
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.34
Shares Outstanding46,006,560
10 Day Avg. Volume578,623
30 Day Avg. Volume504,446
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 Cap0.90
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit9.03
Enterprise Value/Ebitda18.12
Forecast
1Y Price Target
$92.67Price Target Upside-2.29% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.32
Revenue Forecast (FY)$1.72B
Diodes Business Overview & Revenue Model
Company Description
Diodes Incorporated designs, manufactures, and supplies application-specific standard products in the discrete, logic, analog, and mixed-signal semiconductor markets worldwide. It focuses on low pin count semiconductor devices with one or more act...
How the Company Makes Money
Diodes makes money primarily by designing, manufacturing (through a combination of internal manufacturing and outsourced foundry/assembly-and-test partners), and selling semiconductor components to electronics OEMs and contract manufacturers. Reve...
Diodes Key Performance Indicators (KPIs)
Diodes Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed solid top-line momentum with broad-based revenue growth (notably in computing/AI, automotive, and industrial), strong cash generation and meaningful product/content expansion. However, margin pressure from manufacturing underloading and some sequential profitability softness temper near-term earnings visibility. Management provided constructive multi-year targets and specific margin/revenue roadmaps, indicating confidence in recovery and structural improvement.Positive Updates
Revenue Growth — Quarter and Full Year
Q4 2025 revenue of $391.6M, up 15.4% year-over-year (from $339.3M). Full-year 2025 revenue of $1.5B, up 13% year-over-year (from $1.3B) — the highest annual growth since 2021 and the fourth consecutive quarter of double-digit YoY growth.
Negative Updates
Gross Margin Pressure Year-over-Year
GAAP gross margin declined to 31.1% in Q4 2025 from 32.7% in Q4 2024; full-year GAAP gross margin fell to 31.3% in 2025 from 33.2% in 2024, reflecting margin pressure versus prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth — Quarter and Full Year
Q4 2025 revenue of $391.6M, up 15.4% year-over-year (from $339.3M). Full-year 2025 revenue of $1.5B, up 13% year-over-year (from $1.3B) — the highest annual growth since 2021 and the fourth consecutive quarter of double-digit YoY growth.
Read all positive updates
Company Guidance
For Q1 2026 the company guided revenue of approximately $395.0 million ±3% (midpoint = ~19% year-over-year and slight sequential increase), GAAP gross margin of 31.5% ±1%, non‑GAAP operating expenses of ~26.5% ±1%, net interest income of about $1.0 million, an expected tax rate of 18.5% ±3%, and ~46.4 million shares outstanding (non‑GAAP excludes $3.9 million after‑tax amortization of acquisition intangibles). Management also introduced three‑year interim targets of $2.0 billion in annual revenue with ≈$700 million in gross profit (35%+ gross margin), implying a 10.5% revenue CAGR and 15% gross‑profit CAGR, >$4 of non‑GAAP EPS (≈50% EPS CAGR), a $2.5 billion / $1.0 billion gross profit long‑term goal (40% gross margin), and an expectation of >45% gross‑profit flow‑through on incremental revenue as underloading costs and manufacturing efficiencies improve.Diodes Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.48B | 1.31B | 1.66B | 2.00B | 1.81B |
| Gross Profit | 462.44M | 435.86M | 658.18M | 827.24M | 670.36M |
| EBITDA | 230.48M | 202.15M | 420.96M | 532.02M | 445.02M |
| Net Income | 66.14M | 44.02M | 227.18M | 331.28M | 228.76M |
Balance Sheet | |||||
| Total Assets | 2.45B | 2.39B | 2.37B | 2.29B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 377.03M | 316.13M | 325.63M | 343.79M | 370.14M |
| Total Debt | 95.61M | 91.70M | 98.36M | 213.67M | 334.55M |
| Total Liabilities | 509.69M | 517.33M | 557.98M | 705.39M | 891.77M |
| Stockholders Equity | 1.88B | 1.80B | 1.74B | 1.51B | 1.24B |
Cash Flow | |||||
| Free Cash Flow | 137.15M | 46.41M | 130.15M | 180.77M | 197.35M |
| Operating Cash Flow | 215.51M | 119.44M | 280.91M | 392.50M | 338.54M |
| Investing Cash Flow | -116.18M | -118.04M | -158.32M | -265.26M | -144.23M |
| Financing Cash Flow | -54.81M | -19.34M | -144.72M | -125.71M | -158.44M |
Diodes Technical Analysis
Positive
94.84
Price Trends
70.55
Positive
61.70
Positive
57.23
Positive
Market Momentum
6.83
Negative
78.94
Negative
95.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIOD, the sentiment is Positive. The current price of 94.84 is above the 20-day moving average (MA) of 76.68, above the 50-day MA of 70.55, and above the 200-day MA of 57.23, indicating a bullish trend. The MACD of 6.83 indicates Negative momentum. The RSI at 78.94 is Negative, neither overbought nor oversold. The STOCH value of 95.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $11.22B | 82.61 | 5.43% | ― | 2.80% | -21.98% | |
75 Outperform | $4.22B | 21.10 | 11.72% | ― | -17.57% | -38.28% | |
73 Outperform | $5.01B | 4.07 | 15.21% | 2.22% | 10.32% | 35.32% | |
71 Outperform | $4.66B | 34.57 | 3.55% | ― | 13.04% | 49.69% | |
63 Neutral | $3.92B | 90.19 | 3.17% | 2.27% | 5.86% | -30.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $3.78B | -219.07 | -0.43% | 2.67% | 4.48% | 71.58% |
* Technology Sector Average
DIOD
Diodes
96.67
58.51
153.33%
ACLS
Axcelis Technologies
134.02
86.15
179.97%
FORM
Formfactor
134.18
106.27
380.76%
POWI
Power Integrations
66.02
17.78
36.84%
SIMO
Silicon Motion
149.18
105.16
238.85%
VSH
Vishay Intertechnology
26.74
13.99
109.66%
Diodes Corporate Events
Financial Disclosures
Diodes Schedules First-Quarter 2026 Earnings Release and Call
Neutral
Apr 16, 2026
On April 16, 2026, Diodes Incorporated announced it will release its first-quarter 2026 financial results on May 7, 2026, with the announcement scheduled for 3:05 p.m. Central Time. The company will host a conference call later that day at 4:00 p....
Business Operations and StrategyFinancial Disclosures
Diodes Posts Strong Q4 Growth, Sets Ambitious Targets
Positive
Feb 12, 2026
On February 10, 2026, Diodes reported that fourth quarter 2025 revenue rose 15.4% year over year to $391.6 million, capping a 13% increase for the full year to $1.5 billion and marking a fourth straight quarter of double-digit growth. Strong deman...
Business Operations and StrategyStock BuybackFinancial Disclosures
Diodes Posts Strong Q4 Results and Bullish 2026 Outlook
Positive
Feb 10, 2026
Diodes Incorporated reported preliminary, unaudited fourth-quarter 2025 results on February 10, 2026, with revenue of $391.6 million at the high end of guidance, up 15.4% year-on-year, and full-year 2025 revenue growth of 13%, its strongest annual...
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.