We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can AI Demand Become a Meaningful Growth Engine for Vishay Stock?
Read MoreHide Full Article
Key Takeaways
Vishay expects AI-related revenues in 2026 to be significantly above 2025 levels.
VSH is seeing demand for MOSFETs, capacitors, inductors and resistors in AI power systems.
VSH is expanding into AI networking, optical modules and next-generation data center power.
Artificial intelligence is emerging as one of the most important growth opportunities for Vishay Intertechnology (VSH - Free Report) , with management highlighting strong and accelerating demand across multiple AI-related applications.
During the first quarter of 2026, the company reported continued momentum in AI-driven programs, particularly across power infrastructure, data centers and optical communications. Management also indicated that AI-related revenues in 2026 are expected to be significantly higher than in 2025.
Vishay is benefiting from the growing adoption of several key technologies used in AI systems. Management cited sustained demand for high-voltage MOSFETs used in AI power applications, while customers continue to add Vishay’s polymer capacitors, power inductors and current-sense resistors to AI power management architectures. These products are increasingly being incorporated into next-generation server power supplies, AI infrastructure equipment and high-performance networking systems.
VSH’s AI exposure is also broadening beyond servers. Vishay is actively pursuing opportunities in optical communication modules, 800-gigabit and 1.6-terabit networking switches, and next-generation power systems required to support rapidly growing AI workloads. The company noted increased collaboration with telecom customers involved in AI optical networking while continuing to advance design efforts for next-generation AI power supplies and 800-volt power-management systems targeting data-center applications.
Vishay believes its expanded manufacturing capacity under the Vishay 3.0 strategy is strengthening its competitive position. While larger semiconductor suppliers remain formidable competitors, Vishay is leveraging shorter lead times, expanded capacity and a unique combination of semiconductor and passive component offerings to gain share.
Management pointed to supply constraints affecting some competitors and said Vishay is capturing incremental AI-related business by offering reliable supply and products available for immediate delivery.
As AI infrastructure spending continues to expand, Vishay appears increasingly well positioned to convert this demand into a meaningful long-term growth driver.
Peer Updates
Diodes (DIOD - Free Report) delivered another strong quarter, with revenues rising 22% year over year to $405.5 million, supported by accelerating momentum in automotive, industrial and AI server-related applications. Automotive and industrial together accounted for 44% of product revenues, helping gross margin expand to 31.8% as higher-margin content and utilization improved.
Growth was fueled by increasing semiconductor content in vehicles, AI-driven power infrastructure, industrial automation and data-center networking. Management also highlighted robust design wins in silicon carbide, power management and connectivity products.
Sustainability appears favorable as AI infrastructure, automotive electrification and factory automation remain secular drivers, though management expects customer qualification cycles and fab loading normalization to extend into 2027–2028, suggesting growth should remain durable but gradual rather than explosive.
Lattice Semiconductor (LSCC - Free Report) posted a robust quarter, with revenues surging 42% year over year to $170.9 million, driven primarily by AI data center demand, compute and communications strength and industrial automation recovery. Compute and communications reached record levels, accounting for 62% of revenues, while industrial and embedded products rebounded more than 20% sequentially.
Growth is increasingly being driven by Lattice’s expanding presence in AI servers, where its low-power FPGAs support security, power sequencing and platform management functions rather than competing directly with CPUs and GPUs.
The growth outlook appears sustainable, with bookings extending into 2027, channel inventory normalizing to roughly two months and management describing the company as being in the “early innings” of a multiyear cycle driven by AI infrastructure, networking and physical AI applications. However, supply-chain constraints and rising backend costs could temper future margin expansion.
VSH’s Price Performance, Valuation and Estimates
Shares of Vishay have skyrocketed 340.3% so far this year compared with the industry’s 331.3% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Vishay trades at a forward price-to-earnings ratio of 58.83, significantly above the industry average. It is also higher than its five-year median of 12.26. VSH carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Vishay’s fiscal 2026 earnings implies a 1600% improvement from the year-ago period’s level.
View the Zacks #1 Rank List
Image: Bigstock
Can AI Demand Become a Meaningful Growth Engine for Vishay Stock?
Key Takeaways
Artificial intelligence is emerging as one of the most important growth opportunities for Vishay Intertechnology (VSH - Free Report) , with management highlighting strong and accelerating demand across multiple AI-related applications.
During the first quarter of 2026, the company reported continued momentum in AI-driven programs, particularly across power infrastructure, data centers and optical communications. Management also indicated that AI-related revenues in 2026 are expected to be significantly higher than in 2025.
Vishay is benefiting from the growing adoption of several key technologies used in AI systems. Management cited sustained demand for high-voltage MOSFETs used in AI power applications, while customers continue to add Vishay’s polymer capacitors, power inductors and current-sense resistors to AI power management architectures. These products are increasingly being incorporated into next-generation server power supplies, AI infrastructure equipment and high-performance networking systems.
VSH’s AI exposure is also broadening beyond servers. Vishay is actively pursuing opportunities in optical communication modules, 800-gigabit and 1.6-terabit networking switches, and next-generation power systems required to support rapidly growing AI workloads. The company noted increased collaboration with telecom customers involved in AI optical networking while continuing to advance design efforts for next-generation AI power supplies and 800-volt power-management systems targeting data-center applications.
Vishay believes its expanded manufacturing capacity under the Vishay 3.0 strategy is strengthening its competitive position. While larger semiconductor suppliers remain formidable competitors, Vishay is leveraging shorter lead times, expanded capacity and a unique combination of semiconductor and passive component offerings to gain share.
Management pointed to supply constraints affecting some competitors and said Vishay is capturing incremental AI-related business by offering reliable supply and products available for immediate delivery.
As AI infrastructure spending continues to expand, Vishay appears increasingly well positioned to convert this demand into a meaningful long-term growth driver.
Peer Updates
Diodes (DIOD - Free Report) delivered another strong quarter, with revenues rising 22% year over year to $405.5 million, supported by accelerating momentum in automotive, industrial and AI server-related applications. Automotive and industrial together accounted for 44% of product revenues, helping gross margin expand to 31.8% as higher-margin content and utilization improved.
Growth was fueled by increasing semiconductor content in vehicles, AI-driven power infrastructure, industrial automation and data-center networking. Management also highlighted robust design wins in silicon carbide, power management and connectivity products.
Sustainability appears favorable as AI infrastructure, automotive electrification and factory automation remain secular drivers, though management expects customer qualification cycles and fab loading normalization to extend into 2027–2028, suggesting growth should remain durable but gradual rather than explosive.
Lattice Semiconductor (LSCC - Free Report) posted a robust quarter, with revenues surging 42% year over year to $170.9 million, driven primarily by AI data center demand, compute and communications strength and industrial automation recovery. Compute and communications reached record levels, accounting for 62% of revenues, while industrial and embedded products rebounded more than 20% sequentially.
Growth is increasingly being driven by Lattice’s expanding presence in AI servers, where its low-power FPGAs support security, power sequencing and platform management functions rather than competing directly with CPUs and GPUs.
The growth outlook appears sustainable, with bookings extending into 2027, channel inventory normalizing to roughly two months and management describing the company as being in the “early innings” of a multiyear cycle driven by AI infrastructure, networking and physical AI applications. However, supply-chain constraints and rising backend costs could temper future margin expansion.
VSH’s Price Performance, Valuation and Estimates
Shares of Vishay have skyrocketed 340.3% so far this year compared with the industry’s 331.3% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Vishay trades at a forward price-to-earnings ratio of 58.83, significantly above the industry average. It is also higher than its five-year median of 12.26. VSH carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Vishay’s fiscal 2026 earnings implies a 1600% improvement from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.