Diodes Inc (DIOD)

Price$89.64Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares look expensive unless the earnings recovery continues quickly and proves durable.

At the observed quote, the shares are about 48 times trailing earnings of roughly $1.86 per share and about 29 times trailing free cash flow. Free cash flow means cash left after operating the business and buying equipment; the last four reported quarters produced roughly $143 million. Those are demanding multiples for a cyclical chip supplier. Even annualizing second-quarter earnings gives roughly 22 times earnings, so the price already assumes the recovery continues rather than merely normalizes for one quarter.

Big pictureSales are rebounding from a deep semiconductor downturn, but profitability has not fully recovered.

Revenue peaked near $2.00 billion in 2022, fell to $1.31 billion in 2024, then recovered to $1.48 billion in 2025. Second-quarter 2026 revenue reached $445.5 million, up 21.7% from a year earlier, while gross profit margin, the share of sales left after product costs, improved to 33.1% from 31.5%. Management guided third-quarter revenue to about $510 million and gross margin to 35.0%. The rebound is real, but 2025 operating income remained only $35.5 million versus $408.2 million in 2022.

Business strengthCash generation and the balance sheet provide protection, though recent deal financing changes the cushion.

At June 2026, supplied figures show $430.4 million of cash, $70.4 million of debt, and about $360 million of net cash, meaning cash exceeded debt. Current assets were $1.36 billion against $429.4 million of current liabilities. Cash generation improved, with 2025 free cash flow near $137 million. Shares outstanding rose only about 3.6% from 2020 to mid-2026, and buybacks resumed. However, the $250 million ElevATE purchase and $325 million zero-interest convertible notes, debt that can later become shares, materially reshape the cushion.

What could change the storyA sustained profit recovery could justify today's expectations, while a stalled cycle would expose downside.

The bull case needs the current recovery to persist: third-quarter guidance implies roughly $510 million of revenue and a 35% gross margin, versus about 41% in 2022. ElevATE is expected to add about $50 million of first-year revenue and improve earnings. The bear case is a relapse toward the 2024-2025 earnings trough. The new notes initially convert at a level 50% above the reference stock price, while options designed to reduce dilution and a $35 million buyback limit near-term share pressure but not execution risk.

AI: News

Earnings rebound acceleratesSecond-quarter sales and margins improved sharply, and stronger next-quarter guidance lifted expectations for the recovery.

On August 5, Diodes reported $445.5 million of quarterly revenue, up 21.7% year over year, and a 33.1% gross margin. It guided the next quarter to about $510 million of revenue and 35.0% gross margin, with adjusted earnings per share, a profit measure excluding specified items, around $1.05. The stock rose 15.3% in the next session and another 6.5% the following day. That timing is consistent with a favorable earnings reaction, although market moves can have multiple causes.

Convertible financingDiodes raised debt that can become shares, adding cash flexibility but creating future dilution risk.

On August 14, Diodes priced $325 million of notes due 2031 with no regular interest. The debt can convert into shares under specified conditions, with the initial conversion level set 50% above the reference stock price. About $19 million funded options designed to reduce future dilution, and $35 million funded a repurchase of roughly 0.36 million shares. The stock fell 9.2% on the proposal day and rebounded 6.5% after pricing; the timing suggests investor concern, but does not prove causation.

ElevATE acquisition closesThe ElevATE purchase adds higher-value test chips and expected revenue, but raises integration and spending stakes.

Diodes completed the $250 million all-cash acquisition on August 27. ElevATE designs analog and mixed-signal chips for automated semiconductor testing, an area that benefits as chips become more complex and require more testing. Diodes expects about $50 million of revenue in the first twelve months and says the deal should improve revenue, gross margin, and earnings per share immediately. The stock moved only 0.35% that day, so the market response was muted and cannot be attributed confidently to the closing alone.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$1.48B	$1.31B	$1.66B	$2.00B	$1.81B	$1.23B	$1.25B	$1.21B	$1.05B	$942.2M	$848.9M	$890.7M	$826.8M	$633.8M	$635.3M	$612.9M	$434.4M	$432.8M
Gross profit	$462.4M	$435.9M	$658.2M	$827.2M	$670.4M	$431.1M	$465.8M	$435.3M	$356.8M	$286.9M	$248.6M	$277.3M	$237.8M	$161.6M	$193.7M	$224.9M	$121.2M	$132.5M
Gross margin	31.20%	33.24%	39.61%	41.35%	37.14%	35.07%	37.29%	35.86%	33.84%	30.45%	29.28%	31.13%	28.76%	25.49%	30.49%	36.69%	27.90%	30.62%
Research & development	$162.2M	$134.1M	$134.9M	$126.3M	$119.2M	$94.3M	$88.5M	$86.3M	$77.9M	$69.9M	$57.0M	$52.1M	$48.3M	$33.8M	$27.2M	$26.6M	$23.8M	$21.9M
Operating expenses	$427.0M	$385.4M	$407.6M	$419.0M	$394.4M	$296.8M	$265.2M	$280.8M	$277.4M	$248.9M	$206.5M	$192.8M	$195.6M	$136.7M	$121.7M	$119.9M	$98.4M	$105.9M
Operating income	$35.5M	$50.5M	$250.6M	$408.2M	$276.0M	$134.3M	$200.6M	$154.5M	$79.4M	$38.0M	$42.1M	$84.5M	$42.3M	$24.9M	$72.0M	$104.9M	$22.8M	$26.6M
Operating margin	2.39%	3.85%	15.08%	20.40%	15.29%	10.93%	16.06%	12.73%	7.53%	4.03%	4.96%	9.49%	5.11%	3.93%	11.33%	17.12%	5.26%	6.15%
EBITDA	$179.2M	$187.6M	$387.9M	$536.0M	$398.4M	$242.3M	$310.2M	$259.1M	$175.1M	$137.0M	$122.2M	$161.3M	$115.9M	$89.1M	$133.4M	$156.7M	$70.0M	$68.3M
EBITDA margin	12.09%	14.31%	23.34%	26.79%	22.07%	19.71%	24.83%	21.35%	16.61%	14.54%	14.40%	18.11%	14.02%	14.06%	21.00%	25.57%	16.12%	15.77%
Net income	$66.1M	$44.0M	$227.2M	$331.3M	$228.8M	$98.1M	$153.3M	$104.0M	−$1.8M	$15.9M	$24.3M	$63.7M	$26.5M	$24.2M	$50.7M	$76.7M	$7.5M	$28.2M
Net profit margin	4.46%	3.36%	13.67%	16.56%	12.67%	7.98%	12.27%	8.57%	−0.17%	1.69%	2.86%	7.15%	3.21%	3.81%	7.99%	12.52%	1.73%	6.52%
Basic EPSper basic share	$1.43	$0.95	$4.96	$7.31	$5.11	$1.92	$3.02	$2.09	-$0.04	$0.33	$0.50	$1.35	$0.57	$0.53	$1.12	$1.74	$0.18	$0.69
Diluted EPSper diluted share	$1.43	$0.95	$4.91	$7.20	$5.00	$1.88	$2.96	$2.04	-$0.04	$0.32	$0.49	$1.31	$0.56	$0.51	$1.09	$1.68	$0.17	$0.66

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

16.01%of listed shares

BlackRock, Inc.7.35M shares · Jun 30, 2026

View holders

Top 20 reported holders of DIOD
Holder	% owned
BlackRock, Inc.	16.01%7.35M shares
FMR LLC	9.55%4.38M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	8.16%3.74M shares
STATE STREET CORP	5.68%2.61M shares
DIMENSIONAL FUND ADVISORS LP	4.80%2.2M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.35%1.99M shares
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	3.67%1.68M shares
GEODE CAPITAL MANAGEMENT, LLC	3.59%1.65M shares
MORGAN STANLEY	2.28%1.05M shares
PRICE T ROWE ASSOCIATES INC /MD/	2.13%976.11K shares
EARNEST PARTNERS LLC	2.10%964.6K shares
Invesco Ltd.	1.94%889.22K shares
AMERICAN CENTURY COMPANIES INC	1.76%806.89K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.59%728.89K shares
Global Alpha Capital Management Ltd.	1.26%579K shares
NORTHERN TRUST CORP	1.25%574.56K shares
VICTORY CAPITAL MANAGEMENT INC	1.11%507.59K shares
LU KEH SHEW	≈1.10%506.29K shares
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	1.05%480.79K shares
BESSEMER GROUP INC	1.00%460.74K shares

Percentages use 45.87M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)43$18.97M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 29, 2026Form 4	White Richard DallasCorporate Secretary	SellDiodes Incorporated Common Stock	2.0K	$107.01	$214.0K	8.1K
May 29, 2026Form 4	White Richard DallasCorporate Secretary	SellDiodes Incorporated Common Stock	1.0K	$104.48	$104.5K	10.1K
May 29, 2026Form 4	Tang FrancisChief Technology Officer	SellDiodes Incorporated Common Stock	15.3K	$112.04	$1.72M	71.4K
May 27, 2026Form 4	Yu GaryPresident and CEO	SellDiodes Incorporated Common Stock	3.6K	$110.08	$399.8K	108.1K
May 27, 2026Form 4	Yang EmilySVP Worldwide Sales/Marketing	SellDiodes Incorporated Common Stock	3.0K	$110.08	$330.2K	61.9K

Review ownership filings at SEC.gov ↗

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Diodes Inc (DIOD)

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