Update shared on08 Aug 2025
Fair value Increased 14%Despite a notable decline in net profit margin, the significant rise in Diodes’ future P/E multiple suggests heightened market optimism for future growth, resulting in a revised fair value price target of $58.67.
What's in the News
- Diodes Incorporated provided Q3 2025 guidance targeting revenue of approximately $392 million (±3%), representing a 12% year-over-year increase, marking the fourth consecutive quarter of annual growth.
- Launched new 3.3V, quad-channel hybrid ReDrivers for HDMI/DisplayPort applications aimed at improving signal integrity for high-bandwidth devices including 8K DTV, gaming consoles, and computing systems.
- Introduced automotive-compliant 80V ideal diode controllers (AP74502Q, AP74502HQ), targeting advanced driver assistance and EV applications, supporting 12V, 24V, and emerging 48V battery systems.
- Multiple index changes: dropped from several Russell growth indices but added to the Russell 2000 Dynamic Index.
- Gary Yu appointed as CEO, succeeding Dr. Keh-Shew Lu, who remains Chairman and special advisor; Yu has a longstanding tenure and extensive operational experience within Diodes.
- Auditor transition following Moss Adams LLP’s merger with Baker Tilly US, LLP; Baker Tilly appointed as Diodes’ independent registered public accounting firm.
- Developed industry’s first ReDriver for PCIe 6.0 speeds, targeting high-performance computing and data center markets.
Valuation Changes
Summary of Valuation Changes for Diodes
- The Consensus Analyst Price Target has significantly risen from $51.67 to $58.67.
- The Future P/E for Diodes has significantly risen from 19.93x to 28.50x.
- The Net Profit Margin for Diodes has significantly fallen from 9.74% to 7.05%.
Disclaimer
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