Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: N/A
• Average Volume (3M): 269.41K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.77
• Revenue Growth: 10.45%
• EPS Growth: 4.37%
• Country: US
• Employees: 7,829
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.37
• Shares Outstanding: 46,385,330
• 10 Day Avg. Volume: 257,330
• 30 Day Avg. Volume: 269,412
• PEG Ratio: -0.80
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 61.40
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $58.67
• Price Target Upside: 2.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.24
• Revenue Forecast (FY): $1.61B

• Rating: 70 Outperform
• Price Target: $63.00 ▲(9.62% Upside)

Diodes' overall stock score reflects its strong financial position and revenue growth, particularly in computing and AI applications. However, margin pressures and a high valuation relative to peers present challenges. The technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand in key markets, enhancing Diodes' market position and supporting long-term expansion.

Strong Cash Flow

Robust cash flow generation supports operational flexibility and potential reinvestment in growth initiatives, strengthening financial health.

New Product Initiatives

A strong pipeline of new products, especially in automotive, positions Diodes for future growth and competitive advantage in emerging markets.

Negative Factors

Gross Margin Pressure

Decreasing gross margins indicate cost management challenges, potentially impacting profitability and requiring strategic adjustments.

Decline in Net Income

A significant drop in net income highlights profitability issues, which may hinder financial performance if not addressed effectively.

Lower EBITDA Margin

A reduced EBITDA margin suggests operational inefficiencies, potentially affecting long-term profitability and requiring operational improvements.

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 active or passive components. The company offers discrete semiconductor products, such as MOSFET, TVS, and performance Schottky rectifiers; GPP bridges and retifiers, and performance Schottky diodes; Zener and performance Zener diodes, including tight tolerance and low operating current type; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and prebiased transistors; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products, such as power management devices comprising AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. The company offers mixed-signal products, such as high speed mux/demux products, digital switches, interfaces, redrivers, universal level shifters/voltage translator, clock ICs, and packet switches; standard logic products comprising low-voltage complementary metal–oxide–semiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.

How the Company Makes Money

Diodes generates revenue primarily through the sale of its semiconductor products, which are used in a variety of applications including power management, signal conditioning, and data conversion. Key revenue streams include the sales of discrete semiconductors, such as diodes and transistors, as well as integrated circuits and specialty products. The company benefits from a diverse customer base, including large OEMs (Original Equipment Manufacturers) and contract manufacturers in the electronics industry. Additionally, Diodes has established strategic partnerships with other technology firms, which can enhance its product offerings and market reach. The company's focus on innovation and high-quality manufacturing processes contributes to its ability to command competitive pricing and maintain strong profit margins.

Diodes Financial Statement Overview

Summary

Diodes presents a stable financial position with strong balance sheet metrics and improving cash flow performance. While profitability margins have room for enhancement, the company's low leverage and solid equity base provide a strong foundation for future growth.

Income Statement

Diodes shows a modest revenue growth rate of 3.03% in the TTM, indicating a recovery from previous declines. The gross profit margin of 31.57% and net profit margin of 4.49% suggest stable profitability, though lower than historical highs. The EBIT and EBITDA margins are relatively low at 4.49% and 12.76%, respectively, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.24%, reflecting minimal leverage and financial risk. The return on equity is modest at 3.46%, suggesting efficient use of equity capital. The equity ratio of 78.83% highlights a solid capital structure with significant equity financing.

Cash Flow

Diodes exhibits a healthy free cash flow growth rate of 14.35% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.68 and free cash flow to net income ratio of 0.72 demonstrate effective cash conversion, though there is potential for further improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.31B	1.66B	2.00B	1.81B	1.23B
Gross Profit	451.39M	435.86M	658.18M	827.24M	670.36M	431.12M
EBITDA	225.91M	202.15M	420.96M	532.02M	445.02M	240.01M
Net Income	64.18M	44.02M	227.18M	331.28M	228.76M	98.09M
Balance Sheet
Total Assets	2.47B	2.39B	2.37B	2.29B	2.19B	1.98B
Cash, Cash Equivalents and Short-Term Investments	391.85M	316.13M	325.63M	343.79M	370.14M	274.21M
Total Debt	100.66M	91.70M	98.36M	213.67M	334.55M	488.48M
Total Liabilities	522.37M	517.33M	557.98M	705.39M	891.77M	963.33M
Stockholders Equity	1.89B	1.80B	1.74B	1.51B	1.24B	963.82M
Cash Flow
Free Cash Flow	186.86M	46.41M	130.15M	180.77M	197.35M	111.41M
Operating Cash Flow	259.22M	119.44M	280.91M	392.50M	338.54M	187.22M
Investing Cash Flow	-167.65M	-118.04M	-158.32M	-265.26M	-144.23M	-106.77M
Financing Cash Flow	-30.11M	-19.34M	-144.72M	-125.71M	-158.44M	-54.30M

Diodes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 57.47 is above the 20-day moving average (MA) of 52.31, above the 50-day MA of 49.68, and above the 200-day MA of 49.70, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 87.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIOD.

Diodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	78 Outperform	$2.96B	22.01	13.62%	―	-20.69%	-37.67%
SIMO	76 Outperform	$3.85B	39.02	11.88%	2.22%	-2.26%	9.74%
DIOD	70 Outperform	$2.67B	41.18	3.47%	―	10.45%	4.37%
FORM	68 Neutral	$5.84B	149.11	4.16%	―	2.29%	-69.81%
POWI	62 Neutral	$2.41B	138.52	2.53%	2.27%	10.50%	-52.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VSH	55 Neutral	$2.42B	-32.61	-3.59%	2.67%	-0.84%	-189.44%

Diodes Corporate Events

Diodes Reports Strong Q3 Revenue Growth

On November 6, 2025, Diodes, Inc. reported a 7% sequential and 12% year-over-year revenue increase for the third quarter of 2025, driven by strong demand in the computing market, particularly for AI-related applications. Despite slower recovery in the automotive and industrial sectors, revenue growth was noted in these areas. The company anticipates future margin expansion through improved product mix and new product introductions, with a projected 12% growth for the full year. Diodes is also gaining market share in the automotive sector with new programs launching soon.

The most recent analyst rating on (DIOD) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Diodes Reports Strong Q3 2025 Financial Results

Diodes Incorporated reported its financial results for the third quarter of 2025, showing a revenue increase to $392.2 million, up from $350.1 million in the same quarter of 2024. The company experienced a 12% year-over-year growth driven by strong demand in the general computing market, particularly in AI-related server applications and data centers. Despite a slower recovery in the automotive and industrial markets, Diodes is optimistic about future growth, expecting a 12% increase in revenue for the full year. The company is also gaining market share in the automotive sector with new programs set to launch and increasing content in industrial applications.

The most recent analyst rating on (DIOD) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.