Track market-moving stories before they get noisy

PLANO, Texas--(BUSINESS WIRE)--Diodes Incorporated (Nasdaq: DIOD) will host a conference call on Wednesday, August 5, 2026 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its second quarter 2026 financial results. Joining Gary Yu, President and Chief Executive Officer of Diodes Incorporated, will be Brett Whitmire, Chief Financial Officer, and Emily Yang, Senior Vice President of Worldwide Sales and Marketing. The Company intends to distribute the announcement of its second quarte.

AUSTIN, Texas--(BUSINESS WIRE)--Presidio Investors (“Presidio”), a lower middle market private equity firm, today announced that it has entered into a definitive agreement to sell ElevATE Semiconductor, Inc. (“ElevATE”) to Diodes Incorporated (Nasdaq: DIOD) in an all-cash transaction valued at $250 million. ElevATE, headquartered in San Diego, California, is a leading fabless designer of low-power, high-density integrated circuits for the automated test equipment (ATE) industry. The sale marks.

Key Takeaways AXTI is benefiting from strong AI data center demand, with Q1 2026 revenues rising 39% year over year.AXT reported backlog above $100 million and plans to double Indium Phosphide capacity through 2027.DIOD grew Q1 revenues by 22%, driven by automotive, industrial, and AI server-related demand. The AI-driven semiconductor upcycle has created significant opportunities for emerging chip suppliers positioned in high-growth infrastructure markets, and both AXT (AXTI - Free Report) and Diodes (DIOD - Free Report) are benefiting from this trend.

AXT has rapidly become a critical supplier of Indium Phosphide substrates used in optical transceivers supporting hyperscale AI data centers, while Diodes is capitalizing on demand growth across automotive semiconductors, industrial applications, and AI server-related power management solutions. Although both stocks have delivered exceptional gains in 2026, with AXTI surging 345.7% and DIOD climbing 129.3%, AXT’s direct leverage of the AI infrastructure boom makes its long-term story increasingly compelling.

Looking ahead, both companies appear positioned for continued growth through the second half of 2026. However, the nature of their growth trajectories differs considerably. AXT is entering an aggressive multiyear capacity expansion cycle supported by record customer backlog and hyperscaler-driven optical demand.

Diodes continues to execute a diversified semiconductor strategy centered on automotive electrification, industrial automation, and data center infrastructure. While both are benefiting from AI-related tailwinds, AXT appears more directly exposed to one of the fastest-growing segments of the semiconductor industry.

YTD Price Chart AXTI vs DIOD

Image Source: Zacks Investment Research

Case for AXTIAXT is increasingly emerging as one of the most direct beneficiaries of hyperscale AI infrastructure spending. The company’s first-quarter revenues grew 39% year over year to $26.9 million. Indium Phosphide revenues totaled $13.6 million, representing more than half of total revenues.

Management emphasized that demand is being driven primarily by optical transceivers and high-speed photodetectors used in AI data center infrastructure, with the company now supplying multiple U.S. hyperscalers indirectly through Tier 1 optical customers.

The company’s biggest strength lies in its extraordinary growth visibility. Management disclosed record backlog exceeding $100 million, with the second quarter expected to become the largest Indium Phosphide quarter in the company’s history.

AXT is aggressively scaling its production capacity, targeting a doubling of its Indium Phosphide capacity by the end of 2026, followed by another doubling in 2027, with additional expansion plans extending into 2028. The company is also positioning for future demand from co-packaged optics (CPO), silicon photonics, and China’s accelerating AI supply-chain expansion. The primary risk relates to export permit uncertainty and geopolitical exposure, though demand momentum currently remains extremely favorable.

AXT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AXTI’s Sales & EPS Estimate

Image Source: Zacks Investment Research

Case for DIODDiodes has demonstrated strong operational execution, though its growth profile remains more diversified and less focused on AI infrastructure than some of its peers. First-quarter revenues rose 22% year over year to $405.5 million, marking its sixth consecutive quarter of double-digit growth.

Management highlighted strong momentum across automotive, industrial, and AI server-related applications, with automotive and industrial now accounting for 44% of total product revenues. Growth is being driven by semiconductor demand linked to EV content expansion, factory automation, and data center power management systems.

The company continues to expand its AI-related opportunities across server power supply units, networking infrastructure, PCIe connectivity solutions, battery backup units, and silicon carbide MOSFET products targeting high-voltage data center power systems. Unlike AXT’s concentrated exposure, Diodes operates a far more diversified business model spanning industrial automation, automotive electronics, consumer devices, communications infrastructure, and computing.

This diversification provides stability, but growth is likely to be moderate compared to AXT’s explosive trajectory. Challenges include lengthy customer qualification cycles, gradual fab utilization improvement timelines extending into 2027-2028, and slower direct AI monetization compared to pure-play infrastructure suppliers.

Diodes currently carries a Zacks Rank #3 (Hold).

DIOD’s Sales & EPS Estimate

Image Source: Zacks Investment Research

Valuation ComparisonAXTI now trades at a forward 12-month price-to-sales (P/S F12M) ratio of 29.5X, significantly above the semiconductor industry average of 9.95X and dramatically above its own five-year median valuation multiple of 1.48X. The premium clearly reflects investor expectations for sustained AI-driven growth. While valuation appears stretched, the market is pricing in AXT’s unique position within the rapidly expanding optical infrastructure supply chain.

AXTI’s P/S F12M Chart

Image Source: Zacks Investment Research

DIOD trades at P/S F12M multiple of 3.17X, well below the semiconductor industry average of 9.95X, though still above its five-year median multiple of 1.93X. The lower valuation suggests investors remain more cautious about its long-term growth outlook. Although it trades at a lower valuation than AXTI, the market appears to be assigning it a lower premium because of its diversified business model and less direct exposure to AI-driven growth.

DIOD’s P/S F12M Chart

Image Source: Zacks Investment Research

ConclusionBoth AXT and Diodes are positioned to benefit from favorable semiconductor industry tailwinds in 2026, but the magnitude and nature of their growth opportunities differ meaningfully. Diodes offers investors diversified semiconductor exposure supported by strong execution across automotive, industrial, and AI server markets.

However, AXT currently presents the more attractive upside opportunity. Its direct exposure to hyperscale AI infrastructure buildouts, rapidly expanding Indium Phosphide demand, record backlog, aggressive capacity expansion roadmap, and differentiated supply-chain advantages create a significantly stronger long-term growth narrative. Despite premium valuation levels, AXTI’s superior AI-driven positioning makes it the more attractive emerging semiconductor stock currently.

PLANO, Texas--(BUSINESS WIRE)--Diodes Incorporated (Nasdaq: DIOD) will host a conference call on Thursday, May 7, 2026 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its first quarter 2026 financial results. Joining Gary Yu, President and Chief Executive Officer of Diodes Incorporated, will be Brett Whitmire, Chief Financial Officer, and Emily Yang, Senior Vice President of Worldwide Sales and Marketing. The Company intends to distribute the announcement of its first quarter 2026.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Diodes (DIOD - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Diodes currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if DIOD is a promising momentum pick, let's examine some Momentum Style elements to see if this semiconductor components maker holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For DIOD, shares are up 10.08% over the past week while the Zacks Electronics - Semiconductors industry is up 8.28% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 56.24% compares favorably with the industry's 31.57% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Diodes have risen 79.45%, and are up 173.41% in the last year. On the other hand, the S&P 500 has only moved 4.15% and 30.86%, respectively.

Investors should also pay attention to DIOD's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. DIOD is currently averaging 588,042 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with DIOD.

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost DIOD's consensus estimate, increasing from $2.25 to $2.45 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that DIOD is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Diodes on your short list.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Diodes Incorporated (Diodes) (Nasdaq: DIOD) introduces the PI3EQX32904Q, an automotive-compliant*, 32Gbps, four-channel linear ReDriver that optimizes signal integrity for high-speed protocols such as PCI Express® (PCIe®) 5.0 specification, SAS4, and CXL. Targeting smart cockpit architectures that integrate advanced driver-assistance systems (ADAS), infotainment systems, and instrument clusters into a single unit, the device addresses the growing signal-int.

Diodes Incorporated (DIOD) Q1 2026 Earnings Call Transcript

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 12:

Albemarle Corporation (ALB - Free Report) : This engineered specialty chemicals company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days.

Albemarle’s shares gained 26.2% over the last three months compared with the S&P 500’s advance of 8.4%. The company possesses a Momentum Score  of A.

APA’s shares gained 31.4% over the last three months compared with the S&P 500’s advance of 8.4%. The company possesses a Momentum Score of A.

Diodes Incorporated (DIOD - Free Report) : This developer of semiconductor products has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.9% over the last 60 days.

Diodes’ shares gained 57.5% over the last three months compared with the S&P 500’s advance of 8.4%. The company possesses a Momentum Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Momentum score and how it is calculated here.

PLANO, Texas--(BUSINESS WIRE)--Diodes Incorporated (Nasdaq: DIOD), today announced the Company's participation in the following financial conferences: TD Cowen Technology, Media and Telecom Conference Participation Date: Thursday, May 28, 2026 Location: InterContinental Barclay Hotel – New York, NY Baird Global Consumer, Technology and Services Conference Participation Date: Tuesday, June 2, 2026 Fireside Chat: 10:15 AM ET Location: InterContinental Barclay Hotel – New York, NY Evercore TMT Glo.

Diodes Incorporated (Diodes) (Nasdaq: DIOD) expands its AH371xQ series of automotive-compliant* Hall effect latches for motor control applications that need to operate at very low magnetic thresholds and bipolar switching behaviors. Featuring a proprietary Hall plate design, the AH3711Q is used for brushless DC (BLDC) motor control, valve operation, linear and incremental rotary encoders, and position-sensing functions. Vehicle applications include window power-lift and sunroof movement, tailgate opening/closing mechanisms, seat adjustment motors, cooling fans, water/oil pumps, and speed measurement.

The magnetic operate (BOP) and release (BRP) points over the AH3711Q, which covers ±10 Gauss, delivers greater placement flexibility. This ultra-high sensitivity enables it to detect weaker magnetic fields, allowing the use of smaller, more cost-effective magnets to reduce system size and the total bill-of-materials (BOM) cost. The greater magnetic margin also enables aggressive duty-cycle reduction, lowering power consumption and extending battery life.

To enhance system reliability, the Hall effect latch operates over a 3V to 27V range. The device has a reverse blocking diode with a Zener clamp on the supply, and the output has an overcurrent limit and a Zener clamp. This combination of components provides protection against 40V load dumps, reverse polarity, and short circuits. The wide input voltage range, coupled with a high 8kV HBM and 1kV CDM ESD rating, further enhances the device’s robustness in harsh environments.

The device also features a chopper-stabilized design, which minimizes switch-point drift across the full -40°C to +150°C temperature range and provides high resistance to physical stress during PCB assembly. This mitigates the effects of thermal variation and enhances stray-field immunity. The power-on time is typically 13µs, which helps avoid system-level faults. Open-drain outputs offer greater external pull-up flexibility for voltages above or below the supply voltage.

The magnetic operating and release polarity is opposite for the SOT23 (Type S) and SC59 packages. For operation, the SOT23 (Type S) and SIP-3 (Bulk Pack) packages require the south pole to the part-marking side, and the SC59 requires the south pole to the non-part-marking side.

The AH3711Q is available at $0.20 in 2,000-piece quantities. A standard-compliance version, AH3711, is also available for industrial and commercial applications.

About Diodes Incorporated

Diodes Incorporated (Nasdaq: DIOD), delivers high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets. We leverage our expanded product portfolio of analog and power solutions combined with a flexible hybrid manufacturing model that meet customers’ needs. Our broad range of application-specific products, delivered through a total solutions sales approach and supported by global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-growth markets. For more information, visit www.diodes.com.

*Automotive-compliant - AEC qualified, manufactured in facilities certified to IATF 16949, supporting PPAP documents.

The Diodes logo is a registered trademark of Diodes Incorporated in the United States and other countries.

All other trademarks are the property of their respective owners.

© 2026 Diodes Incorporated. All Rights Reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260520523653/en/

PLANO, Texas--(BUSINESS WIRE)--Diodes Incorporated (Diodes) (Nasdaq: DIOD) announces the APK43070Q, a highly integrated, automotive-compliant* synchronous buck controller in combination with a USB Type-C® PD3.1 source controller. This level of integration reduces the number of external components, lowers BOM cost, and simplifies the design of high-power USB Type-C charging ports. Typical applications include single-port and multi-port USB Type-C charging modules in vehicles. Operating from a 4V.

Key Takeaways Diodes has surged 147.5% in the past year, outpacing the industry's 107.9% gain.DIOD is ramping automotive exposure with power, timing and connectivity chips for EVs and ADAS.DIOD targets industrial automation and AI data centers, with expanding design wins and product portfolio. Diodes Incorporated (DIOD - Free Report) has surged 147.5% in the past year compared with the industry’s growth of 107.9%. It has lagged peers like Lattice Semiconductor Corporation (LSCC - Free Report) and ASE Technology Holding Co., Ltd. (ASX - Free Report) . While ASE Technology has gained 335.5%, Lattice Semiconductor has jumped 229.7% over this period.

Diodes is benefiting from a favorable mix of secular growth drivers that are strengthening its long-term outlook. The company continues to expand its presence in high-growth end markets, including automotive, industrial automation and artificial intelligence (AI)-driven data centers, positioning it for sustained revenue growth and margin expansion.

One-Year Stock Price Performance of DIOD

Image Source: Zacks Investment Research

Automotive Business: A Key Growth DriverDiodes has been steadily increasing its exposure to the automotive market, which has become one of its most important growth engines. The company supplies a broad portfolio of power management, connectivity, timing and protection solutions used in advanced driver-assistance systems, infotainment platforms, USB-C charging, lighting systems and electric vehicles.

The ongoing shift toward vehicle electrification and smarter, software-defined vehicles is driving higher semiconductor content per vehicle. As automakers incorporate more advanced safety, connectivity and power-management features, demand for Diodes' products is expected to increase. The company continues to secure new automotive design wins, which should support future revenue growth and enhance earnings visibility. Moreover, automotive applications typically offer longer product lifecycles and more stable pricing than consumer-oriented markets, making them an attractive source of sustainable growth.

Industrial Automation Trends Remain FavorableDiodes is also benefiting from growing semiconductor demand across industrial markets. The company's products are increasingly being deployed in factory automation systems, robotics, medical equipment, smart energy infrastructure and industrial controls.

The global push toward automation and digitization is creating strong demand for analog and power-management semiconductors. Manufacturers continue to invest in automation technologies to improve efficiency and address labor shortages, creating a favorable environment for suppliers like Diodes. Industrial applications generally require highly reliable, long-life components, which often translate into stable demand patterns and attractive profitability. As automation adoption accelerates worldwide, Diodes remains well positioned to capitalize on this opportunity.

AI Infrastructure Buildout Creating New OpportunitiesThe rapid expansion of AI infrastructure is opening another promising avenue for growth. While much of the market's attention remains focused on AI processors, modern AI servers require a wide range of supporting semiconductors, including power-management, timing, connectivity and signal-conditioning devices.

Diodes is benefiting from the increasing demand for AI server deployments and next-generation data center architectures. The company's solutions help manage power delivery, improve system efficiency and support high-performance computing environments. As hyperscalers and cloud providers continue to invest heavily in AI infrastructure, Diodes stands to benefit from rising semiconductor content across data-center platforms.

Strong Design-Win Momentum Bodes WellDiodes continues to invest in new technologies and products targeting next-generation applications. The company is expanding its portfolio of automotive-qualified solutions, advanced timing devices, high-speed connectivity products and power-management offerings. A growing pipeline of design wins lends support to the company's long-term growth trajectory.

Moving ForwardDiodes remains well positioned to benefit from several powerful secular trends, including vehicle electrification, industrial automation and AI infrastructure expansion. The company's growing presence in higher-growth end markets, improving product mix and expanding design-win pipeline provide a solid foundation for future growth.

Diodes' strategic focus on automotive, industrial and AI-driven applications should help drive sustainable revenue growth and profitability over the long term. Investors, therefore, are likely to benefit if they invest in this high-flying Zacks Rank #1 (Strong Buy) stock now. You can see the complete list of today’s Zacks #1 Rank stocks here.

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.

Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.

Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

Diodes (DIOD - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. DIOD is quite a good fit in this regard, gaining 81.1% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 1.5% over the past four weeks ensures that the trend is still in place for the stock of this semiconductor components maker.

Moreover, DIOD is currently trading at 95.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in DIOD may not reverse anytime soon.

In addition to DIOD, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

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