Diodes rises after BofA starts coverage with Buy rating
DIOD•Diodes shares rose 3.38% premarket after BofA initiated coverage with a Buy rating and a $135 price target, implying about 30% upside to the last close. BofA said AI data-center revenue, currently about 12% of sales, could triple by 2030.
1. Coverage and growth outlook
BofA initiated coverage of Diodes with a Buy rating and a $135 price target. The brokerage said the company is well-positioned to gain market share in automotive, industrial and AI data-center semiconductor markets, citing rising semiconductor content in vehicles and growing AI infrastructure demand as long-term growth tailwinds.
2. AI revenue potential
BofA said AI data-center revenue, currently about 12% of sales, has the potential to triple by 2030. Diodes shares rose 3.38% to $107.64 premarket; the stock had more than doubled year to date as of the last close.
