Diodes Incorporated (DIOD)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-09
$90.07-0.93%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Diodes keeps growing revenue fast, about 22% last quarter. Profit margins are improving, with gross margin guided near 33%. Operating income rose sharply from $1.3M to $19.8M last year. Analysts expect earnings to rise to $4.99 per share next year.
The stock is down 25% from its high and faces legal and leadership risks. Profit margin gains may stall and revenue growth could slow below analyst expectations. The semiconductor sector is volatile and the company’s valuation is elevated.
The price is about 2% above our fair value near $92. The market expects about 21% revenue growth, which aligns with recent results. Our view is cautious given recent selloff and legal risks.
Breaks if: EPS falls below $3.5 in FY 2027
Breaks if: Gross margin falls below 31% next quarter
Breaks if: Operating income falls below $10 million next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth in automotive, industrial, and AI-server markets. The current thesis is stable, supported by strong recent financial performance and management's clear priorities.
The market appears to have priced in a justified valuation with a low expectations gap. There is a slight premium compared to peers, indicating that investors may have moderate expectations for future performance.
Fundamentals are likely to continue improving, as management is on track with priorities that have shown positive results. Recent financial performance has been strong, but there is an elevated risk due to past volatility in management confidence.
The thesis hinges on management's ability to maintain guidance and deliver on growth targets. Additionally, external factors like Federal Reserve rate decisions and performance of sector leaders will play a crucial role in shaping future outcomes.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The company’s Q3 guidance shows alignment with revenue growth targets. This focus is on automotive, industrial, and AI-server sectors. There are no new threats impacting the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $422 million in Q2 2026
Over the next 1 to 3 years, DIOD's performance will depend on management execution and broader market conditions. Not investment advice.