Vishay Intertechnology, Inc. (VSH - Free Report) has rolled out two series of optocouplers – VOT8024A and VOT8121A. Notably, this latest move is in sync with its solid focus on enhancement of product portfolio.
Both the series is combined with phototriac output in space-saving compact DIP-4 and SMD-4 packages. Further, the new optocouplers help in controlling inductive, capacitive and resistive loads such as motors, TRIACs, relays and solenoids, to name a few, by isolating low voltage logic from 120 VAC, 240 VAC, and 380 VAC lines.
With its new product launches, the company intends to offer robust noise isolation for home appliances and industrial equipment.
These optocouplers are well-equipped to take care of safety margins improvement in one-phase applications and maintain adequate voltage headroom for three-phase applications simultaneously, with the help of high off-state voltage in them.
They can be primarily utilized in many applications such as power TRIAC drivers in solid-state relays, valve control in household appliances, three-phase air conditioners, boilers, thermostats and industrial motor control, to name a few.
Expanding Opto Portfolio
The launch of VOT8024A and VOT8121A helped Vishay to expand optoelectronics portfolio. This is likely to boost the performance of the company’s optoelectronics product segment, which in turn, will drive its top line.
Vishay has also unveiled series of optocouplers — VOT8025A and VOT8125A — reflecting the company’s efforts toward enhancement of its offerings for optoelectronics customers.
Notably, these optocouplers are equipped with compact DIP-6 and SMD-6 packages, and high off-state voltage, which serve the same purpose compared with the new ones.
Opto Market Holds Promise, Risk Persists
Vishay is well-positioned to capitalize on the increasing demand for factory automation systems, and growing proliferation of electric, and hybrid vehicles worldwide, courtesy of all the above-mentioned strong endeavors.
Per ReportLinker, the global market for optocouplers is expected to hit $2.1 billion by 2023, at a CAGR of 4.5% between 2018 and 2023.
Further, a report by MarketsandMarkets shows that the booming global optoelectronics market is anticipated to reach $9.8 billion by 2025, witnessing a CAGR of 14.13% between 2018 and 2025.
We believe that Vishay will be able to rapidly penetrate into these potential markets with its expanding optoelectronics and optocoupler portfolio.
However, the company is currently suffering from the weak performance of its optoelectronics product segment, which in turn, is impacting its top-line growth. This is primarily due to declining inventories. Sluggishness in China also remains a headwind for this product segment.
Zacks Rank & Stocks to Consider
Currently, Vishay has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology sector are Verint Systems Inc. (VRNT - Free Report) , Cadence Design Systems, Inc. (CDNS - Free Report) and Intuit Inc. (INTU - Free Report) . While Verint and Cadence sport a Zacks Rank #1 (Strong Buy), Intuit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings growth rate for Verint, Cadence and Intuit is currently pegged at 11%, 11% and 16.2%, respectively.
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