Diodes, Inc.

Diodes booked $1.5B of sales and kept only 2.4% as operating profit.

If you own DIOD, here's what $62.31 versus $71 means for you.

diod

technology · semiconductors mid cap updated mar 20, 2026
$62.31
market cap ~$3B · 52-week range $33–$82
xvary composite: 59 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Diodes makes custom chips for cars, computers, and industrial gear, and it employs 7,989 people.
how it gets paid
Last year Diodes made $1.5B in revenue. Other end markets was the main engine at $0.87B, or 58% of sales.
why it's growing
Revenue grew 13.0% last year. The $0.22 profit-per-share print mattered because it was 18.5% below the $0.27 estimate.
what just happened
$0.22 in profit per share missed the $0.27 estimate, even with $1.1B of revenue.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
40/100 earnings predictability — expect surprises
51.1x trailing p/e — you're paying up for this one
11.0% return on capital — nothing to write home about
xvary composite: 59/100 — below average
What they do
Diodes makes custom chips for cars, computers, and industrial gear, and it employs 7,989 people.
You are buying a part maker, not a brand people brag about. Diodes has 7,989 employees, and 42% of sales now comes from computing plus automotive. The quiet part is simple: design wins (being chosen into a customer's product) are sticky, and replacing them takes time and money.
semiconductors mid-cap analog automotive industrial
How they make money
$1.5B annual revenue · their business grew +13.0% last year
Other end markets
$0.87B
+6.0%
Computing
$0.33B
+25.0%
Automotive
$0.30B
+24.0%
The products that matter
discrete, logic, and analog chips
Standard semiconductor portfolio
$1.5B revenue base
It's still the entire $1.5B company. The problem is economics: an 8.4% net margin does not leave much room for mistakes.
core
data-center and AI server components
Computing
25% growth in 2025
This business grew 25% in 2025 on demand for parts like I2C repeaters, DDR multiplexers, and PCI Express 5.0 and 6.0 clock solutions. That's one of the few places where DIOD looks like a growth stock.
growth
connected driving and electrification chips
Automotive
24% growth in 2025
Automotive grew 24% for the full year and 6% sequentially. That's real momentum, but it's still part of a company the market caps at about $3B, not a standalone auto-chip giant.
mix shift
Key numbers
$1.5B
annual revenue
That is the size of the whole machine. You are buying a $1.5B chip shop with 2.4% operating margin.
2.4%
operating margin
Operating margin means profit left after running costs. At 2.4%, a small cost bump can eat a lot of earnings.
$24M
long-term debt
Debt is tiny at 1% of capital. That gives management room when demand cools.
11.0%
return on capital
Return on capital means profit generated from money invested. At 11.0%, the business earns a decent return, not a great one.
Financial health
B++
strength
  • balance sheet grade B++ — above average financial health
  • risk rank 3 — safer than 50% of stocks
  • price stability 30 / 100
  • long-term debt $24M (1% of capital)
  • net profit margin 11.3% — keeps 11 cents of every dollar in revenue
  • return on equity 11% — $0.11 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in DIOD 3 years ago → it's now worth $6,880.

The index would have given you $14,540.

same period. same starting point. DIOD trailed the market by $7,660.

source: institutional data · total return
What just happened
missed estimates
$0.22 in profit per share missed the $0.27 estimate, even with $1.1B of revenue.
Gross margin, or the share of sales left after chip costs, was 31.2%. Revenue was still large, but the profit line stayed thin.
$1.1B
revenue
$0.22
eps
31.2%
gross margin
profit per share
The $0.22 profit-per-share print mattered because it was 18.5% below the $0.27 estimate.
source: company earnings report, 2026

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What could go wrong

the #1 risk is a false dawn in the semiconductor recovery.

∘
med
inventory swings come back
Channel inventory is back to the normal 11–14 week range. That's good. If it starts building again, DIOD feels it across the whole business because all $1.5B of revenue sits inside a cyclical chip market.
Impact: pricing pressure and order volatility would hit the entire revenue base, not just one segment.
∘
med
AI server demand cools
Computing grew 25% in 2025 thanks to data-center and AI server demand. If hyperscaler spending slows, one of DIOD's most important growth pockets stops covering for the slower core portfolio.
Impact: the stock loses part of the growth story that helps justify 51.1x trailing earnings.
∘
med
automotive mix shift stalls
Automotive grew 24% for the full year and 6% sequentially, and automotive plus computing now make up 42% of sales. If that mix stops climbing, DIOD looks more like a standard-chip supplier again.
Impact: the multiple can compress even if revenue holds up, because the quality-of-business story weakens.
A stumble here would hit both the numbers and the narrative: all $1.5B of revenue is cyclical, and 42% of sales now carry the burden of proving the mix-shift thesis.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings print
Watch whether revenue stays on a double-digit growth path and whether management still sounds confident about computing and automotive demand.
trend
computing + automotive mix
These two businesses now represent 42% of sales after 25% and 24% full-year growth. If that mix rises, the quality story gets stronger. If it stalls, the stock looks expensive again.
metric
channel inventory
11–14 weeks is normal. Anything meaningfully above that is usually where pricing discipline and order visibility start getting messy.
risk
institutional sponsorship
Two straight quarters of net institutional selling is not a thesis breaker. It does tell you large holders are not racing to underwrite this valuation yet.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak: analysts do not see a clear near-term edge here.
risk profile
average
Stability score 3 — this is a normal risk profile for a cyclical mid-cap, not a bunker stock and not a disaster zone.
chart momentum
average
Technical score 3 — the chart is not screaming breakout or breakdown. It is waiting for fundamentals to do the talking.
earnings predictability
40 / 100
Low predictability means estimates move around more than you would like. Translation: expect a bumpier ride than the headline multiple suggests.
source: institutional data
Institutional activity

institutions have been net selling for 2 consecutive quarters — 94 buyers vs. 119 sellers in 4q2025. net selling for 2 quarters.

source: institutional data · 2q2025-4q2025
source: institutional data
Price targets
3-5 year target range
$40 $101
$62 current price
$71 target midpoint · +14% from current · 3-5yr high: $115 (+85% · 17% ann'l return)
source: institutional data · analyst targets

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