Is Diodes Incorporated profitable in 2026?

Yes. Diodes posted Q1 2026 revenue of $405.5M, up 22% YoY, with non-GAAP EPS of $0.43, per its May 7, 2026 earnings release. Full-year 2025 revenue was about $1.5B with roughly $69M net income, though its 5.5% net margin trails peers like NXP at 21%.

Who are Diodes Incorporated's biggest competitors?

Diodes competes with Texas Instruments ($4.83B quarterly revenue, world's largest analog maker), onsemi, Infineon, NXP, Vishay, and Nexperia, per Q1 2026 earnings commentary and MarketBeat's July 18, 2026 competitor comparison. It is smaller and lower-margin than most of these rivals.

Could AI replace Diodes Incorporated's manufacturing business?

No. Diodes makes physical discretes, analog and power semiconductors requiring fabs and qualification testing, a category software AI cannot substitute. Instead, AI-infrastructure server demand is cited by management as a growth tailwind, part of its Q1 2026 22% YoY revenue increase reported May 7, 2026.

Is Diodes Incorporated a safe company to work for in 2026?

Headcount was about 7,989 as of February 27, 2026, roughly flat versus prior years despite revenue growth, per WSJ data. The company just installed a new CEO, Gary Yu (May 2025), and a new Chairwoman, Angie Chen Button (May 2026), with no layoffs reported in available sourcing.

Did Diodes Incorporated make an acquisition in 2026?

Yes. On July 14, 2026, Diodes announced a definitive agreement to acquire ElevATE Semiconductor for $250 million all-cash, expanding its analog/mixed-signal and automated test equipment portfolio, with the deal expected to close in the second half of 2026.

How fast is Diodes Incorporated growing in 2026?

Q1 2026 revenue was $405.5M, up 22% YoY from $332.1M in Q1 2025, marking a fifth straight quarter of double-digit YoY growth as of the May 7, 2026 report. Q2 2026 guidance is about $435M, implying roughly 18.8% YoY growth.

Semiconductor companies · United States

Diodes Incorporated

diodes.com ↗

Maker of discrete and analog chips like diodes, MOSFETs, and power ICs for cars and electronics.

Protection under test

Assessed 24 July 2026 · Evidence as of 24 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 24 July 2026 · Checkable from August 5, 2026 · Every call on the record Checkpoint: Q2 2026 earnings call, testing $435M revenue and $0.60 EPS guidance

The call

Diodes is riding a Nexperia supply gap and AI-infrastructure demand to strong growth, while bigger, richer rivals still set the margin bar it has yet to clear.

Diodes Incorporated makes everyday semiconductor chips used in phones, cars, and power supplies. The company has real advantages: customers who rely on its designs and certifications for cars are stuck with it once they build it in, and it generates cash. However, it competes directly against much larger and richer companies like Texas Instruments, onsemi, and Infineon that make similar chips and have better profits. Right now Diodes is growing fast (22% per year), but much of that growth came from a temporary shortage at a rival company called Nexperia and from temporary demand for chips that power artificial intelligence servers. When that temporary demand goes away and Nexperia catches up, Diodes may be left as a smaller player with thinner profits in a crowded market, which would be a problem at today's high stock price.

Why

AI pressure: None apparent. AI mostly feeds Diodes here: data-center and AI-server power demand is lifting orders, not replacing its chips. Could AI do the core job? Unlikely.

Bigger players: Texas Instruments, onsemi, Infineon, NXP. All four already sell competing discrete and power parts with far higher margins and deeper wafer capacity than Diodes. Could a giant copy it? Yes, easily.

What protects it. Automotive and industrial parts require long qualification cycles, so customers rarely re-qualify a new supplier once Diodes parts are designed in.

What would change this call

Diodes Q2 2026 earnings (Aug 5) vs $435M revenue and $0.60 EPS guidance. Tests whether 22% growth is durable or fades as Nexperia supply crisis normalizes.
Gross margin trend toward or away from peer 50%+ levels over next 2-3 quarters. Shows whether Diodes can escape thin-margin commodity positioning versus TI, onsemi, Infineon.
ElevATE Semiconductor $250M acquisition regulatory close in H2 2026. Confirms whether Diodes can execute expansion moves without integration setbacks.

Key numbers

Q1 2026 revenue $405.5M, up 22% YoY (2026-05-07)
Gross margin 31.8%, below peer levels near 50% (2026-05-07)
Automotive revenue up over 32% YoY in Q1 2026 (2026-05-07)

Named risks

Growth tied to Nexperia supply crisis could reverse once normalized, exposing thin-margin commodity base. Severity: high
Stock trades at 47-77x trailing earnings as of May 10, 2026, vulnerable to multiple compression on any growth slowdown. Severity: high
Net margin of 5.5% versus peers at 9.5-21% signals ongoing pricing and competitive pressure. Severity: medium
Integration risk from $250M ElevATE Semiconductor acquisition expected to close H2 2026. Severity: medium
Recent leadership transition with new CEO (May 2025) and new Chairwoman (May 2026) creates execution uncertainty. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Texas Instruments	losing to	TI posted $4.83B quarterly revenue vs Diodes' $405.5M, as of May 7, 2026
NXP Semiconductors	losing to	NXP net margin ~21% vs Diodes' 5.5%, per July 13, 2026 MarketBeat comparison
onsemi	contesting	onsemi net margin ~9.5% vs Diodes' 5.5%, both chasing SiC/power niches as of July 18, 2026
Infineon	losing to	Infineon showcased 8.5kW AI data-center power supply at CES 2025, ahead in wide-bandgap power
Nexperia	gaining on	Diodes capturing displaced orders after Nexperia's Oct 28, 2025 nationalization disrupted its ~40% share
Vishay Intertechnology	contesting	Vishay reported strong Q1 2026 discretes growth via its 'Vishay 3.0' strategy, per June 16, 2026 report

Questions people ask

Is Diodes Incorporated profitable in 2026?: Yes. Diodes posted Q1 2026 revenue of $405.5M, up 22% YoY, with non-GAAP EPS of $0.43, per its May 7, 2026 earnings release. Full-year 2025 revenue was about $1.5B with roughly $69M net income, though its 5.5% net margin trails peers like NXP at 21%.
Who are Diodes Incorporated's biggest competitors?: Diodes competes with Texas Instruments ($4.83B quarterly revenue, world's largest analog maker), onsemi, Infineon, NXP, Vishay, and Nexperia, per Q1 2026 earnings commentary and MarketBeat's July 18, 2026 competitor comparison. It is smaller and lower-margin than most of these rivals.
Could AI replace Diodes Incorporated's manufacturing business?: No. Diodes makes physical discretes, analog and power semiconductors requiring fabs and qualification testing, a category software AI cannot substitute. Instead, AI-infrastructure server demand is cited by management as a growth tailwind, part of its Q1 2026 22% YoY revenue increase reported May 7, 2026.
Is Diodes Incorporated a safe company to work for in 2026?: Headcount was about 7,989 as of February 27, 2026, roughly flat versus prior years despite revenue growth, per WSJ data. The company just installed a new CEO, Gary Yu (May 2025), and a new Chairwoman, Angie Chen Button (May 2026), with no layoffs reported in available sourcing.
Did Diodes Incorporated make an acquisition in 2026?: Yes. On July 14, 2026, Diodes announced a definitive agreement to acquire ElevATE Semiconductor for $250 million all-cash, expanding its analog/mixed-signal and automated test equipment portfolio, with the deal expected to close in the second half of 2026.
How fast is Diodes Incorporated growing in 2026?: Q1 2026 revenue was $405.5M, up 22% YoY from $332.1M in Q1 2025, marking a fifth straight quarter of double-digit YoY growth as of the May 7, 2026 report. Q2 2026 guidance is about $435M, implying roughly 18.8% YoY growth.

Timeline

2026-07-14Announced definitive agreement to acquire ElevATE Semiconductor for $250M all-cash
2026-05-12Angie Chen Button elected Chairwoman as Keh-Shew Lu retires
2026-05-07Reported Q1 2026 revenue $405.5M, up 22% YoY; guided Q2 2026 revenue near $435M
2026-05-06Launched PCIe 7.0 clock generator and automotive four-channel ReDriver
2025-10-28Nexperia nationalized by Dutch government, triggering global supply disruption
2025-05-14Gary Yu became CEO of Diodes Incorporated
1959-06Diodes Incorporated founded in El Monte, California

Revision history

24 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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