Diodes Incorporated has delivered strong earnings execution and exceptional cash conversion, but the current price sits near technical resistance with a risk/reward ratio of roughly 0.8-to-1, elevated leverage at a debt-to-equity of 5.4, and heavy geographic concentration in Asia — a combination that supports holding but not adding at current levels.
Thesis pillars
- Strong Revenue Earnings Growth→Stable
- Leverage Overhang↓Deteriorating
- Earnings Beat Cadence→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 10, 2026· older than 90 days
Diodes Incorporated (DIOD) Stock Analysis
Technology · Semiconductors
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $79.46 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Geographic: Asia; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2).
Diodes Incorporated designs and manufactures standard semiconductor products — including discrete, analog, mixed-signal, and logic devices — serving automotive, industrial, computing, consumer, and communications markets globally. The company generated $1.48 billion in net sales... Read more
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $79.46 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Geographic: Asia; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2). Chart setup: No clear chart pattern; technical signals are mixed. Score 6.1/10, moderate confidence.
Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and SEC filing concern and earnings proximity 0d<=7d. Suitability: aggressive.
About Diodes Incorporated
About Diodes Incorporated
Diodes Incorporated shipped approximately 45 billion units in 2025, generating $1.48 billion in net sales — a 13% year-over-year increase and the company's strongest growth rate since 2021. Revenue was heavily weighted toward Asia, which accounted for $1.16 billion of net sales in 2025, with computing applications — including AI server, storage, and cloud infrastructure — rising to 27% of product revenue, up from 23% in 2023.
The company sells through a hybrid channel: 65% of 2025 net sales passed through distributors, with the remaining 35% from direct and EMS customers. Its product portfolio spans over 28,000 SKUs, including MOSFETs, protection devices, Schottky diodes, power management ICs, analog amplifiers, and frequency control components. Five end-markets divide the revenue base — computing (27%), industrial (23%), automotive (19%), consumer (18%), and communications (13%) in 2025. Capital expenditures totaled $78.4 million in 2025, directed at wafer fabrication facilities in China, Great Britain, Taiwan, and the United States, including a 200mm fab in South Portland, Maine acquired from onsemi in June 2022. Named competitors include Infineon Technologies, NXP Semiconductors, ON Semiconductor, Vishay Intertechnology, and Texas Instruments, all of which are larger organizations with broader product lines.
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Tariff exposure is the most explicitly flagged operational risk in the 2025 10-K, which states that government-imposed tariffs on imported raw materials and components could disrupt the supply chain, raise production costs, and reduce competitiveness in global markets — with no assurance those costs could be passed through to customers. This exposure may weigh on margins given the company's China-heavy assembly and wafer fabrication footprint. In March 2026, Diodes disclosed via Form 8-K the dismissal of Baker Tilly US, LLP as independent auditor and the engagement of PricewaterhouseCoopers LLP for fiscal year 2026, a governance development the company stated involved no disagreements or reportable events.
See also: Technology · Semiconductors
From Diodes Incorporated's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated Oct 29, 2026Recent Developments — Diodes Incorporated
Latest news
- NEWS Diodes (DIOD) Set to Announce Earnings on Thursday - MarketBeat — MarketBeat Oct 29, 2026 neutral
- NEWS Diodes (NASDAQ:DIOD) Share Price Crosses Above 200-Day Moving Average - Here's Why - MarketBeat — MarketBeat Oct 28, 2026 positive
- NEWS Missed Diodes' Run? What Holders Had To Believe - Simply Wall St — Simply Wall St Oct 27, 2026 negative
- NEWS FMR LLC Trims Diodes Inc (DIOD) Stake -- Shares Remain Significantly Overvalued on GF Value - GuruFocus — GuruFocus Aug 12, 2026 negative
- NEWS Diodes (DIOD) Could Be 33% Above Fair Value After Strong Earnings Guidance - simplywall.st — simplywall.st Aug 11, 2026 positive
Latest item Oct 29, 2026 · Generated 2026-11-05T11:39:29Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicAsia10-K Item 1: 'Asia ... 1,156,823 ... Total net sales ... 1,482,073'
- MEDIUMProductComputing27%10-K Item 1: 'Computing ... 27%'
Material Events(8-K, last 90d)
- 2026-05-12Item 5.02LOWDirector Dr. Keh-Shew Lu voluntarily resigned from the Board on May 11, 2026 after receiving more 'withheld' votes than 'for' votes at the 2026 Annual Meeting. Resignation not due to any disagreement with company operations, policies, or practices. No successor named.SEC filing →
- 2026-03-11Item 4.01HIGHAudit Committee dismissed Baker Tilly US, LLP as independent auditor effective March 5, 2026. No adverse opinions, disagreements, or reportable events in fiscal years 2025 or 2024. PricewaterhouseCoopers LLP engaged as new auditor for fiscal year 2026.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $79.46 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Geographic: Asia; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $75.12. Score 6.1/10, moderate confidence.
Analyst target: $121.13 (+52.4% upside). Prior stop was $75.12. Stop-loss: $75.12.
Concentration risk — Geographic: Asia; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2); Sector modifier (Technology): -0.8.
Diodes Incorporated trades at a P/E of 42.5 (forward 14.3). TrendMatrix value score: 7.4/10. Verdict: Sell.
12 analysts rate DIOD, with a consensus score of 4.2/5. 4 analysts publish price targets averaging $143.
What does Diodes Incorporated do?Diodes Incorporated designs and manufactures standard semiconductor products — including discrete, analog,...
Diodes Incorporated designs and manufactures standard semiconductor products — including discrete, analog, mixed-signal, and logic devices — serving automotive, industrial, computing, consumer, and communications markets globally. The company generated $1.48 billion in net sales in 2025 (up 13% from 2024), shipping approximately 45 billion units across more than 50,000 customers via a mix of direct sales and distributor channels.