Diodes Incorporated (DIOD) saw its stock soar 5.08% in pre-market trading on Wednesday, February 12th, 2025, following the company's release of better-than-expected fourth quarter 2024 earnings results and an analyst rating upgrade.

The semiconductor manufacturer reported a 5% year-over-year revenue growth in Q4 2024, reaching $339.3 million, marking a return to growth after a multi-year market slowdown. The company maintained a strong product mix, with automotive and industrial sectors contributing 42% of total product revenue.

Diodes also introduced 755 new part numbers in 2024, with 330 specifically for the automotive market, increasing addressable content per car by over 30%. The company's strong presence in Asia, with 80% of Q4 revenue coming from the region, and double-digit growth in the second half of 2024 compared to 2023, further boosted its performance.

However, revenue for the full year 2024 was $1.3 billion, down from $1.7 billion in 2023, indicating a significant decline. GAAP net income for Q4 2024 was $8.2 million, a decrease from $25.3 million in the prior year quarter. The company is also experiencing ongoing inventory rebalancing and demand challenges in the automotive and industrial markets, which may persist into 2025. Gross profit margin decreased to 32.7% in Q4 2024 from 34.9% in the prior year quarter.

Additionally, Truist Financial analyst William Stein maintained a Hold rating on Diodes, citing the company's solid execution and improved growth prospects, but also noting potential headwinds from inventory corrections and macroeconomic uncertainties.