10 Must-Buy Semiconductor Stocks to Invest In Now 

7. Diodes Incorporated (NASDAQ:DIOD)

Number of Hedge Fund Holders: 25

Diodes Incorporated (NASDAQ:DIOD) is one of the top must-buy semiconductor stocks to invest in now. Baird lifted the price target on Diodes Incorporated (NASDAQ:DIOD) to $120 from $100 on May 8, maintaining an Outperform rating on the shares. The company also received a rating update from Truist the same day, with the firm lifting the price target on Diodes Incorporated (NASDAQ:DIOD) to $139 from $98 and maintaining a Buy rating on the shares.

The rating updates came after Diodes Incorporated (NASDAQ:DIOD) reported its financial results for fiscal Q1 2026, with revenue for the quarter coming up $405.5 million, compared to $332.1 million in fiscal Q1 2025 and $391.6 million in the prior quarter. GAAP gross profit was $128.8 million, compared to $104.7 million in fiscal Q1 2025 and $121.9 million in the prior quarter. Meanwhile, GAAP gross profit margin was 31.8 percent, compared to 31.5 percent in fiscal Q1 2025 and 31.1 percent in the prior quarter.

Diodes Incorporated (NASDAQ:DIOD) is involved in the manufacture and supply of application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. The firm’s offerings include rectifiers, diodes, protection devices, transistors, MOSFETs, amplifiers and comparators, functional specific arrays, single gate, dual gate and standard logic, Hall-effect, and temperature sensors. Its operations are divided into the following geographical segments: Asia, the Americas, and Europe.