Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 396.85K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.83
• 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: 293,314
• 30 Day Avg. Volume: 396,854
• 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: 1.10
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $57.67
• Price Target Upside: 28.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $47.00 ▲(5.05% Upside)

Diodes' overall stock score reflects a stable financial foundation with strong balance sheet metrics and improving cash flow. However, the stock's technical indicators suggest bearish momentum, and its valuation appears stretched. The mixed sentiment from the earnings call, with both growth and financial challenges, further tempers the outlook.

Positive Factors

Revenue Growth

Diodes' consistent revenue growth, driven by demand in computing and AI applications, indicates strong market positioning and product adoption.

Cash Flow Generation

Strong cash flow generation supports financial flexibility and investment in future growth opportunities, enhancing long-term stability.

New Product Initiatives

A robust pipeline of new products, especially in automotive, positions Diodes for future growth and market expansion.

Negative Factors

Gross Margin Pressure

Decreasing gross margins due to unfavorable product mix may impact profitability, requiring strategic adjustments to improve margins.

Decline in Net Income

A significant decline in net income could strain financial resources and limit reinvestment capabilities, affecting long-term growth.

Flat Communication Market

Stagnation in the communication market may limit revenue diversification, necessitating strategic focus on growth areas.

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. The company has a diverse revenue model that includes direct sales to original equipment manufacturers (OEMs) and distribution partnerships. Key revenue streams come from high-performance diodes and other semiconductor devices used in a variety of applications, including power management, signal processing, and data conversion. Additionally, Diodes benefits from strategic partnerships with major technology firms, which help to expand its market reach and enhance its product offerings. The company's focus on innovation and investment in research and development also contributes to its ability to introduce new products that align with emerging market trends, thereby driving sales growth.

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: Negative
• Last Price: 44.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 44.74 is below the 20-day moving average (MA) of 48.63, below the 50-day MA of 51.91, and below the 200-day MA of 49.43, indicating a bearish trend. The MACD of -2.82 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIOD.

Diodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIMO	72 Outperform	$2.75B	27.89	11.88%	1.93%	-2.26%	9.74%
FORM	67 Neutral	$3.83B	94.10	4.16%	―	2.29%	-69.81%
ACLS	66 Neutral	$2.38B	18.17	13.62%	―	-20.69%	-37.67%
DIOD	63 Neutral	$2.08B	32.38	3.47%	―	10.45%	4.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	61 Neutral	$1.83B	105.32	2.53%	2.30%	10.50%	-52.00%
VSH	45 Neutral	$1.70B	―	-3.59%	3.25%	-0.84%	-189.44%

Diodes Corporate Events

Diodes Inc. Reports Strong Q3 2025 Financial Performance

Diodes Incorporated is a prominent player in the semiconductor industry, providing a wide range of high-quality semiconductor products to various sectors, including automotive, industrial, computing, consumer electronics, and communications. With a global presence, the company operates multiple manufacturing and distribution facilities worldwide.

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.

Diodes to Host Q3 Financial Results Call

On October 16, 2025, Diodes Incorporated announced it will host a conference call on November 6, 2025, to discuss its third quarter financial results. The call will feature key executives and will be accessible via telephone and webcast, with replays available for a limited time. This event is significant for analysts and investors as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (DIOD) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Diodes Inc. Reports Strong Q2 Growth Amid Challenges

Diodes Inc. recently held its earnings call, revealing an overall positive sentiment despite some challenges. The company reported significant revenue and net income growth, largely fueled by robust performance in Asia and the introduction of new products in the automotive sector. However, the call also highlighted issues such as gross margin pressure and inventory digestion in certain markets.

Diodes Reports Strong Q2 2025 Financial Results

On August 7, 2025, Diodes Incorporated announced its financial results for the second quarter of 2025, reporting a revenue of $366.2 million, marking a 14% increase from the same quarter in 2024. The company experienced significant growth in product sales, particularly in Asia, driven by demand in AI-related computing and the EV automotive market in China. Despite challenges such as underloading costs and a less favorable product mix, Diodes achieved a 70% sequential growth in non-GAAP earnings. The company anticipates continued revenue growth in the third quarter, projecting a 7% sequential increase and a 12% year-over-year rise, supported by strong market demand.

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.

Diodes Inc. Reports Strong Q2 2025 Growth

Diodes Incorporated is a leading provider of high-quality semiconductor products, serving major sectors such as automotive, industrial, computing, consumer electronics, and communications. The company is known for its extensive product portfolio and advanced packaging technology, catering to high-volume, high-growth markets globally.