Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Diodes Incorporated reported strong financial results for the second quarter of 2026, with total revenue increasing 22% year-over-year to $445.5 million and 10% sequentially compared to the prior quarter.</li><li>This marks the fifth consecutive quarter of double-digit year-over-year growth, driven by demand across all three major geographic regions—Asia, Europe, and North America—with Asia representing the largest share of revenue at 79%.</li><li>Key markets contributing to growth included automotive, industrial, and computing, with automotive revenue reaching a record 21% of product revenue and demonstrating notable market share gains.</li></ul>

Diodes Incorporated reported strong financial results for the second quarter of 2026, with total revenue increasing 22% year-over-year to $445.5 million and 10% sequentially compared to the prior quarter.This marks the fifth consecutive quarter of double-digit year-over-year growth, driven by demand across all three major geographic regions—Asia, Europe, and North America—with Asia representing the largest share of revenue at 79%.Key markets contributing to growth included automotive, industrial, and computing, with automotive revenue reaching a record 21% of product revenue and demonstrating notable market share gains.

Diodes’ ElevATE Deal — Can $50 Million Unlock The Next Growth Engine?

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<ul>
<li>Like other automotive/industrial semi vendors, Diodes guides 4Q23 sales of 20% q/q and 35% y/y decline (miss by 21%) and weaker gross margin/operating margin of 35%/7% (miss by 5ppts).</li>
<li>The company sees 4Q23 sales decline of 20% mainly from 19% of automotive and 26% of industrial customers due to customer inventory cut coupled with year-end distributor inventory management. </li>
<li>We expect this adjustment for automotive/industrial IDMs to last for at least 6 months and suggest our clients to avoid these names unless valuation becoming attractive.  </li>
</ul>


Like other automotive/industrial semi vendors, Diodes guides 4Q23 sales of 20% q/q and 35% y/y decline (miss by 21%) and weaker gross margin/operating margin of 35%/7% (miss by 5ppts).
The company sees 4Q23 sales decline of 20% mainly from 19% of automotive and 26% of industrial customers due to customer inventory cut coupled with year-end distributor inventory management. 
We expect this adjustment for automotive/industrial IDMs to last for at least 6 months and suggest our clients to avoid these names unless valuation becoming attractive.  


With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
  <li>
<a href="https://smartkarma.com/entities/diodes-inc">Diodes Inc</a>. is a global manufacturer of discrete, analog, and mixed-signal semiconductors, serving diverse end markets including automotive, industrial, computing, consumer, and communications.</li>
  <li>The company's growth strategy is centered on expanding its product portfolio into higher-value categories and pursuing strategic acquisitions, exemplified by the recent agreement to acquire ElevATE Semiconductor to bolster its presence in the Automated Test Equipment (ATE) market.</li>
  <li>Recent financial performance shows a recovery, with five consecutive quarters of double-digit year-over-year revenue growth, driven by strong demand in automotive, industrial, and AI-server applications.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Diodes Inc. is a global manufacturer of discrete, analog, and mixed-signal semiconductors, serving diverse end markets including automotive, industrial, computing, consumer, and communications.
  The company's growth strategy is centered on expanding its product portfolio into higher-value categories and pursuing strategic acquisitions, exemplified by the recent agreement to acquire ElevATE Semiconductor to bolster its presence in the Automated Test Equipment (ATE) market.
  Recent financial performance shows a recovery, with five consecutive quarters of double-digit year-over-year revenue growth, driven by strong demand in automotive, industrial, and AI-server applications.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

<ul><li>Diodes Incorporated has moved to deepen its analog semiconductor exposure through a definitive agreement to acquire ElevATE Semiconductor for $250 million in cash.</li><li>Announced on July 14, 2026, the transaction would add a San Diego-based fabless chip designer focused on integrated circuits for automated test equipment.</li><li>Management expects ElevATE to contribute about $50 million of revenue during the first twelve months after closing, with sales projected to grow at more than 20% annually over the following four years.</li></ul>

Diodes Incorporated has moved to deepen its analog semiconductor exposure through a definitive agreement to acquire ElevATE Semiconductor for $250 million in cash.Announced on July 14, 2026, the transaction would add a San Diego-based fabless chip designer focused on integrated circuits for automated test equipment.Management expects ElevATE to contribute about $50 million of revenue during the first twelve months after closing, with sales projected to grow at more than 20% annually over the following four years.

Diodes’ $250 Million ElevATE Acquisition Could Reset Its Growth!

<ul>
<li>Continuous weaknesses to be seen in industrial and general non-AI server semi demand starting 3Q23 and lasting into 1Q24 and some weaknesses in digital consumer semi demand starting 4Q23.</li>
<li>Memory semiconductor vendors see strengths in 4Q23 and continuous improvement in DRAM/NAND price in 1Q24.</li>
<li>We see a healthy mid single digit q/q and y/y decline on 4Q23 MOI but suggest vendors to avoid in next 1-2 months before they guide down the market.</li>
</ul>


Continuous weaknesses to be seen in industrial and general non-AI server semi demand starting 3Q23 and lasting into 1Q24 and some weaknesses in digital consumer semi demand starting 4Q23.
Memory semiconductor vendors see strengths in 4Q23 and continuous improvement in DRAM/NAND price in 1Q24.
We see a healthy mid single digit q/q and y/y decline on 4Q23 MOI but suggest vendors to avoid in next 1-2 months before they guide down the market.


First Run of Tech/Semis' Guidance Tells Us What Industries and Companies to Avoid

United States

Diodes Incorporated manufactures and supplies discrete, logic, and analog semiconductor devices to consumers in the electronics, computing, industrial, communications, and automotive markets. The Company's products include diodes, transistors, MOSFETs, single gate logic, LED drivers, and USB switches.

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Diodes Inc (DIOD US)

Diodes’ ElevATE Deal — Can $50 Million Unlock The Next Growth Engine?

Diodes Incorporated reported strong financial results for the second quarter of 2026, with total revenue increasing 22% year-over-year to $445.5...

Baptista Research

With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q

With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q, margin contraction, and rising months of inventory. We see...

Andrew Lu

Primer: Diodes Inc (DIOD US) - Aug 2026

Diodes Inc. is a global manufacturer of discrete, analog, and mixed-signal semiconductors, serving diverse end markets including automotive,...

αSK Primers

Diodes’ $250 Million ElevATE Acquisition Could Reset Its Growth!

Diodes Incorporated has moved to deepen its analog semiconductor exposure through a definitive agreement to acquire ElevATE Semiconductor for $250...

Baptista Research

First Run of Tech/Semis' Guidance Tells Us What Industries and Companies to Avoid

First Run of Tech/Semis' Guidance Tells Us What Industries and Companies to Avoid; Weaknesses to be seen in industrial, general non-AI server semi,...

Andrew Lu

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