Vishay Intertechnology (VSH Quick QuoteVSH - Free Report) recently launched Gen 3 1200 V silicon carbide (SiC) Schottky diodes.

The diodes boast high surge current robustness, low forward voltage drop, capacitive charge, and reverse leakage current, increasing efficiency and reliability in switching power designs.

These devices also offer high robustness with operating temperatures up to +175°C, having a low capacitance charge and low typical reverse leakage current and reducing conduction losses.

Vishay is expected to gain solid traction across solar power inverters, energy storage systems, industrial drives and tools, and data centers on the back of these newly launched SiC diodes.

Growth Prospects

Per an EMR report, the global power diode market is expected to witness a CAGR of 7% between 2024 and 2032. Vishay is well-poised to capitalize on this solid growth opportunity on the back of its strengthening diode product portfolio.

Recently, Vishay introduced two new FRED Pt 500 A Ultrafast soft recovery diode modules in the TO-244 Gen III package, designed to reduce losses and are suitable for high-frequency welding, high current converters and ballast water management systems.

The company’s launch of R3T2FPHM3, a two-in-one standard rectifier and transient voltage suppressor, remains noteworthy. The device is operative across a wide temperature range of -55 °C to +175 °C, which makes it ideal for automotive applications like sensor protection, airbag modules and low-power DC/DC converters.

Strength in Portfolio Aids Prospects

Expanding diode offerings bode well for Vishay’s increasing efforts to strengthen its overall product portfolio.

The company recently launched MaxSiC series SiC MOSFETs to expand its discrete semiconductor offerings. These 1200V SiC MOSFETs, which come in standard packages, are expected to create solid traction across industrial applications.

Vishay acquired a precision thermistors company, Ametherm, as part of its strategy to expand its resistors offering by integrating Ametherm’s small package, high-quality inrush current limiters and NTC temperature sensors into its resistors product line.

Vishay is also making concerted efforts to boost its optoelectronics offerings. It recently launched a single-channel 25 MBd optocoupler, VOIH72A, which is suitable for data communication, pulse width modulation and high voltage safety in automation equipment.

These efforts will continue to shape Vishay’s growth trajectory and drive customer momentum across various end markets, which, in turn, will likely aid the overall financial performance of the company in the near term.

However, growing inventory adjustments, contracting lead times and a softening demand environment across industrial end markets remain major concerns for the company. Vishay’s shares have lost 2.3% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 16.7%.

The Zacks Consensus Estimate for 2024 revenues is pegged at $3.1 billion, indicating a decline of 10% year over year.

The consensus mark for 2024 earnings is pegged at 87 cents per share, indicating a 64.3% decline from the year-ago figure. The figure has decreased 20.9% in the past 60 days.

Zacks Rank & Stocks to Consider

Currently, Vishay carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET Quick QuoteANET - Free Report) , Garmin (GRMN Quick QuoteGRMN - Free Report) and Dropbox (DBX Quick QuoteDBX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have gained 42.1% in the year-to-date period. The long-term earnings growth rate for ANET is 16.07%.

Garmin’s shares have gained 26.6% in the year-to-date period. The long-term earnings growth rate for GRMN is currently projected at 8.04%.

Shares of Dropbox have declined 26% in the year-to-date period. The long-term earnings growth rate for DBX is 11.44%.