Will Vishay's (VSH) Space-Grade Transformer Launch Reshape Its Advanced Electronics Growth Story?

• In October 2025, Vishay Intertechnology announced the launch of its SGTPL-28 series of 150 W low profile, space-grade planar transformers optimized for 28 V input forward converters in demanding applications such as avionics, military, and space.
• This innovation expands Vishay's presence in specialized high-reliability markets by offering devices that meet stringent military and space standards and can be easily customized to meet specific design requirements.
• We'll explore how Vishay's entrance into advanced avionics and space-grade components could shift its earnings growth outlook.

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Vishay Intertechnology Investment Narrative Recap

To be a shareholder in Vishay Intertechnology, you have to believe in the company's ability to translate heavy investments in advanced, high-reliability components like space-grade transformers into revenue and margin growth, while overcoming recent profitability challenges. The SGTPL-28 launch may support Vishay’s push into specialty markets, but it is unlikely to materially offset near-term margin pressures or reverse persistent negative free cash flow until there is clear evidence of sustained high-margin orders. Of the company's recent product launches, the 150 W space-grade planar transformers are most relevant, as they reinforce Vishay’s expansion into defense and space applications, a segment with distinct margins and demand patterns. However, the impact on the most immediate catalysts, such as broad-based volume recovery and factory utilization rates, is likely to be limited, since the announced product targets niche, highly specialized applications. By contrast, investors should be aware that ongoing negative cash flow from capacity expansions still leaves open the risk that...

Read the full narrative on Vishay Intertechnology (it's free!)

Vishay Intertechnology's outlook anticipates $3.5 billion in revenue and $587.0 million in earnings by 2028. This is based on a forecast annual revenue growth rate of 6.6% and a $674.7 million increase in earnings from the current earnings of -$87.7 million.

Uncover how Vishay Intertechnology's forecasts yield a $14.00 fair value, a 18% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span from US$14.00 to US$45.54 across three models. While optimism about margin recovery exists, persistent cash flow strain could temper expectations until broader demand improves.

Explore 3 other fair value estimates on Vishay Intertechnology - why the stock might be worth 18% less than the current price!

Build Your Own Vishay Intertechnology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Vishay Intertechnology research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Vishay Intertechnology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Vishay Intertechnology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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