5 Most Buzzing AI Semiconductor Stocks to Buy in 2026

3. Diodes Incorporated (NASDAQ:DIOD)

Stock Upside Potential: 38.13%

Number of Hedge Fund Holders: 25

Diodes Incorporated (NASDAQ:DIOD) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 7, Diodes Inc. (NASDAQ:DIOD) delivered impressive first-quarter 2026 results. The company benefited from solid demand recovery and momentum across key focus areas of automotive, industrial, and AI server-related applications.

First-quarter revenue was up 22% year over year to $405.5 million, compared to $391.6 million in the prior quarter. Adjusted net income more than doubled to $19.8 million compared to $8.8 million in Q1 2025. Earnings per share came in at $0.43, up from $0.19 a share delivered the same quarter last year.

The first quarter marked the fifth consecutive quarter of double-digit growth as Diodes continues to benefit from increased opportunities and orders from automotive customers, as well as an improved outlook across industrial applications.

Diodes expects the underlying growth momentum to continue in the second quarter, with revenue expected to increase 18.8% to $435 million. It would mark the sixth consecutive quarter of double-digit year-over-year growth.

Diodes Incorporated (NASDAQ:DIOD) is a global manufacturer and supplier of discrete, logic, analog, and mixed-signal semiconductors. Their electronic components control, manage, and protect the flow of power and data in modern electronics.

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