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Diodes Inc (DIOD)
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Diodes (DIOD) AI Stock Analysis

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DIOD

Diodes

(NASDAQ:DIOD)

Rating:61Neutral
Price Target:
$53.00
▲(7.70% Upside)
Diodes' overall stock score reflects a combination of strong financial stability and cash flow generation, offset by challenges in profitability and valuation concerns. Technical indicators and earnings call sentiment provide a mixed outlook, while recent corporate events add a positive strategic dimension. The stock's high valuation and current technical weakness suggest caution.
Positive Factors
Sales Strategy
The transition to a system solutions provider is enabling a 'land and expand' approach, securing design wins with high-performance products and increasing content and share with key customers.
Strategic Pivot
The company's strategic pivot under new leadership is focused on driving growth and significant gross margin expansion back toward the 40%+ range.
Negative Factors
Auto and Industrial Recovery
Gross margin pressured on slower Auto and Industrial recovery, utilization and product mix.
Gross Margin Pressure
Gross margin is currently pressured by slower recovery in the Auto and Industrial sectors, alongside utilization and product mix challenges.

Diodes (DIOD) vs. SPDR S&P 500 ETF (SPY)

Diodes Business Overview & Revenue Model

Company DescriptionDiodes 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 MoneyDiodes Incorporated generates its revenue primarily through the design, manufacturing, and sale of semiconductors. The company's products are sold to a wide range of customers in the communications, computing, consumer electronics, automotive, and industrial markets, providing a diversified and stable revenue base. Diodes' revenue model is based on a combination of direct sales and distribution channels, allowing it to effectively reach a global customer base. Key revenue streams include sales of discrete semiconductors, analog and mixed-signal products, and high-performance logic products. The company's significant partnerships with original equipment manufacturers (OEMs) and distributors contribute to its earnings by ensuring a steady demand for its innovative and reliable semiconductor solutions. Diodes also invests in research and development to maintain a competitive edge in technology and product innovation, which supports its ongoing revenue growth.

Diodes Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q1-2025)
|
% Change Since: 23.24%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant year-over-year revenue growth and strategic initiatives such as a stock repurchase program, strong performance in automotive and industrial markets, and opportunities in AI and data center markets. However, these positive aspects were overshadowed by challenges including a net loss, decreased gross margins, EBITDA decline, and ongoing tariff uncertainties.
Q1-2025 Updates
Positive Updates
Revenue Growth
First quarter revenue increased by 10% year-over-year to $332.1 million, indicating growth across target markets.
Automotive and Industrial Market Performance
Automotive and industrial markets accounted for 42% of first-quarter product revenue, showing expanding content and design opportunities.
Stock Repurchase Program
Announcement of a $100 million stock repurchase program, indicating confidence in future growth prospects.
AI and Data Center Market Opportunities
Continued design momentum in AI server and data center applications with several product wins, indicating a strong position in this growing market.
Channel Inventory Improvement
Decrease in channel inventory dollars and days, aligning more closely with real demand and historical POS levels.
Negative Updates
Decrease in Gross Margin
Gross profit margin decreased to 31.5% from 33% in the prior year, affected by inventory depletion and reduced loading at manufacturing facilities.
Net Loss in Q1 2025
Reported a GAAP net loss of $4.4 million for the first quarter, compared to a net income of $14 million in the prior year quarter.
Tariff Uncertainty
Ongoing uncertainty due to recent US-China tariff increases, affecting customer demands and market dynamics.
Decline in EBITDA
EBITDA decreased to $26.2 million or 7.9% of revenue, compared to $48.3 million or 16% of revenue in the prior year period.
Income Before Taxes Decline
Losses before taxes and non-controlling interest were $2.8 million, compared to income of $18.8 million in the prior year period.
Company Guidance
During the Diodes Incorporated First Quarter 2025 Financial Results Conference Call, the company provided guidance indicating a positive outlook for the upcoming quarters. Diodes anticipates second-quarter revenue to increase to approximately $355 million, representing an 11% growth over the prior year period at the midpoint. The GAAP gross margin is expected to be around 31.8%, with non-GAAP operating expenses projected to be around 28% of revenue. The company is guiding for the third consecutive quarter of year-over-year growth, driven by improving market conditions in Asia, Europe, and North America, particularly in the automotive, industrial, and AI-related computing markets. Additionally, Diodes announced a $100 million stock repurchase program, reflecting confidence in its financial position and growth prospects. The company is also strategically managing its manufacturing footprint and inventory levels to support anticipated demand and mitigate the impact of ongoing global economic dynamics, including trade tariffs.

Diodes Financial Statement Overview

Summary
Diodes shows a mixed financial performance. The income statement indicates pressure on profitability and declining revenue, posing challenges. However, the balance sheet is strong with low debt and high equity, providing financial stability. Cash flow generation is robust, with notable growth in free cash flow, although profitability remains a concern.
Income Statement
72
Positive
The company's TTM (Trailing-Twelve-Months) Gross Profit Margin is approximately 32.6%, indicating a strong ability to manage production costs. However, the Net Profit Margin stands at about 1.9%, reflecting challenges in converting revenue to profit. Revenue has decreased from $2 billion in 2022 to $1.34 billion in the latest TTM, showing a negative growth trend and signaling potential market share or demand issues. EBIT and EBITDA margins are under pressure but remain positive.
Balance Sheet
78
Positive
Diodes maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.03, reflecting low financial leverage. The Equity Ratio is strong at 76.4%, indicating a robust capital structure with significant equity financing. Return on Equity (ROE) is modest at 1.4% for the TTM, suggesting that profitability on shareholders' equity is low. Overall, the balance sheet strength is underscored by low debt and high equity, though profitability could improve.
Cash Flow
68
Positive
Free Cash Flow has grown significantly from $46.4 million in 2024 to $138.8 million in the TTM, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is high at 8.1, showing robust cash flow relative to net income. However, the Free Cash Flow to Net Income Ratio is lower at 5.4, pointing to some inefficiencies in cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.34B1.31B1.66B2.00B1.81B1.23B
Gross Profit437.12M435.86M658.18M827.24M670.36M431.12M
EBITDA179.80M202.15M420.96M532.02M444.47M239.56M
Net Income25.55M44.02M227.18M331.28M228.76M98.09M
Balance Sheet
Total Assets2.36B2.39B2.37B2.29B2.19B1.98B
Cash, Cash Equivalents and Short-Term Investments343.93M316.13M325.63M343.79M370.14M274.21M
Total Debt51.56M91.70M98.36M213.67M301.02M450.60M
Total Liabilities484.51M517.33M557.98M705.39M891.77M963.33M
Stockholders Equity1.80B1.80B1.74B1.51B1.24B963.82M
Cash Flow
Free Cash Flow138.78M46.41M130.15M180.77M197.35M111.41M
Operating Cash Flow207.32M119.44M280.91M392.50M338.54M187.22M
Investing Cash Flow-128.39M-118.04M-158.32M-265.26M-144.23M-106.77M
Financing Cash Flow-23.67M-19.34M-144.72M-125.71M-158.44M-54.30M

Diodes Technical Analysis

Technical Analysis Sentiment
Negative
Last Price49.21
Price Trends
50DMA
51.58
Negative
100DMA
46.68
Positive
200DMA
52.98
Negative
Market Momentum
MACD
-0.91
Positive
RSI
37.24
Neutral
STOCH
25.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIOD, the sentiment is Negative. The current price of 49.21 is below the 20-day moving average (MA) of 53.21, below the 50-day MA of 51.58, and below the 200-day MA of 52.98, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 25.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$2.37B14.9312.60%10.60%
70
Outperform
$2.54B32.2010.16%2.60%10.78%58.82%
62
Neutral
£517.09M24.54-6.45%2.78%3.08%-16.36%
62
Neutral
$1.71B89.522.29%2.52%-6.17%
61
Neutral
$2.28B87.411.44%-10.37%-85.11%
59
Neutral
$2.25B51.794.53%8.30%-63.69%
51
Neutral
$2.17B26.74-4.11%2.50%-6.36%-151.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DIOD
Diodes
49.21
-10.97
-18.23%
FORM
Formfactor
29.14
-15.40
-34.58%
KLIC
Kulicke & Soffa
32.36
-7.66
-19.14%
SIMO
Silicon Motion
76.51
17.58
29.83%
SYNA
Synaptics
61.61
-10.72
-14.82%
VSH
Vishay Intertechnology
16.01
-3.69
-18.73%

Diodes Corporate Events

Financial Disclosures
Diodes to Discuss Q2 Results on August 7
Neutral
Jul 17, 2025

Diodes Incorporated announced it will host a conference call on August 7, 2025, to discuss its second quarter financial results. The call will be led by key executives including CEO Gary Yu, CFO Brett Whitmire, and Senior VP Emily Yang, with the financial results being released earlier that day. This event signifies Diodes’ commitment to transparency and engagement with analysts and investors, potentially impacting its market perception and stakeholder confidence.

The most recent analyst rating on (DIOD) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Diodes Appoints Gary Yu as New CEO
Positive
May 14, 2025

On May 13, 2025, Diodes Incorporated appointed Gary Yu as the new Chief Executive Officer, succeeding Dr. Keh-Shew Lu, who will remain as Chairman of the Board and a special advisor. Mr. Yu, who has been with the company since 2008, brings extensive experience to his new role, having previously served in various leadership positions within the company. This leadership change is part of Diodes’ long-term succession plan and is expected to drive the company’s growth and profitability. Additionally, the company held its annual meeting on May 12, 2025, where stockholders elected seven directors, approved executive compensation, and ratified the appointment of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (DIOD) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Diodes Announces $100 Million Stock Repurchase Program
Positive
May 12, 2025

On May 8, 2025, Diodes Incorporated reported a 10% year-over-year revenue growth for the first quarter, driven by strong performance in the computing market in Asia and improving conditions in Europe and North America. The company’s automotive and industrial markets contributed 42% of the product revenue, and a $100 million stock repurchase program was announced, highlighting confidence in future growth. Despite a net loss of $4.4 million for the quarter, Diodes is strategically positioned with a hybrid manufacturing model to meet global demand, and anticipates further growth in the coming quarters.

The most recent analyst rating on (DIOD) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Diodes Reports Q1 2025 Revenue Growth Amid Net Loss
Neutral
May 8, 2025

Diodes Incorporated reported its financial results for the first quarter of 2025, showing a 10% year-over-year revenue growth to $332.1 million, driven by strong performance in the computing market in Asia and improving conditions in Europe and North America. Despite achieving revenue growth, the company experienced a GAAP net loss of $4.4 million due to factors such as reduced channel inventory and the impact of the Chinese New Year holiday on manufacturing operations. However, Diodes anticipates continued growth, particularly in the automotive and industrial markets, and expects to see margin improvements as inventory levels normalize and global demand increases.

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.Date of analysis: Jul 25, 2025