Benchmark Sees Upside in Diodes’ (DIOD) Strategic Shift Under New Leadership

Diodes Inc. (NASDAQ:DIOD) is one of the most oversold semiconductor stocks so far in 2025. While the stock is down over 10% YTD, this performance still compares better than the 24% decline in 2024. That said, analysts remain divided on the name with their view balanced between caution and long-term optimism.

Leaning on the positive side, in mid-June, David Williams, an analyst with Benchmark Co., reiterated his Buy rating on Diodes and raised his price target to $62 from $55. This update followed his meetings with the management, and reflects his growing confidence in the company’s evolving strategy under the new leadership.

A technician looking at a circuit board of analog semiconductor products.

According to Williams, Diode Inc. is shifting its strategy with newly appointed CEO Gary Yu and CFO Brett Whitmire at the center. Rather than pursuing scale for its own sake, Diodes is now prioritizing higher-value opportunities, including allocating capital toward selective M&A, scaling system-level solutions, and increasing its content per device. These shifts are aimed at driving top-line acceleration as well as margin expansion.

Despite a challenging macro backdrop, management remains constructive on demand trends, which Williams sees as supportive of the company’s growth outlook and margin recovery. Williams also noted a key evolution in Diodes’ market approach. The company is repositioning itself from a low-cost supplier to a value-added design partner. This move is already helping the company secure new design deals with industry leaders like NVIDIA and AMD. On the manufacturing front, the emphasis has shifted from capacity growth to developing higher-performance technologies and better cost discipline.

In the analyst’s view, these changes could sharpen Diodes’ competitive edge and set the stage for long-term upside, even in a more uncertain macro environment.

Diodes Inc. (NASDAQ:DIOD) delivers high-quality analog and discrete power semiconductor solutions to companies in the automotive, industrial, computing, consumer electronics, and communications markets.

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Disclosure: None. This article is originally published at Insider Monkey.