Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Diodes Incorporated or Tower Semiconductor Ltd. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Diodes Incorporated and Tower Semiconductor Ltd. compare based on key financial metrics to determine which better meets your investment needs.

About Diodes Incorporated and Tower Semiconductor Ltd.

Diodes Incorporated, together with its subsidiaries, provides semiconductor products in Asia, the Americas, and Europe. The company offers MOSFET and SiC MOSFET discrete semiconductor products; data line protection, power line protection, thyrister, USB Type-C protection, and transient voltage suppressor protection devices; Schottky diodes, small signal switching diodes, Zener diodes, and SiC diodes; and bridges, super barrier rectifiers, Schottky rectifiers, Schottky bridge rectifiers, and fast and ultra-fast rectifiers. It also provides avalanche transistors, gate driver transistors, and pre-bias transistors; power management devices, such as AC-DC and DC-DC converters, digital isolators and isolated gate drivers, USB power switches, low dropout, photocoupler, and linear voltage regulators; standard linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including Hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products comprising high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs, and packet switches; low-voltage complementary metal-oxide-semiconductor (CMOS) and CMOS devices, as well as ultra-low power CMOS logic and analog switches; and multichip products, co-packaged discrete, analog, and mixed-signal silicon in miniature packages. Further, it provides silicon and silicon epitaxial wafers; frequency control products; and contact image sensors. The company serves industrial, automotive, computing, consumer, and communications end-markets through direct sales, marketing personnel, independent sales representatives, and distributors. Diodes Incorporated was incorporated in 1959 and is headquartered in Plano, Texas.

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel

Latest Semiconductors & Semiconductor Equipment and Diodes Incorporated, Tower Semiconductor Ltd. Stock News

As of September 4, 2026, Diodes Incorporated had a $4.2 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $4.8 million. Diodes Incorporated’s stock is up 86% in 2026, up 4.3% in the previous five trading days and up 71.72% in the past year.

Currently, Diodes Incorporated’s price-earnings ratio is 49.4. Diodes Incorporated’s trailing 12-month revenue is $1.6 billion with a 5.3% net profit margin. Year-over-year quarterly sales growth most recently was 21.7%. Analysts expect adjusted earnings to reach $3.225 per share for the current fiscal year. Diodes Incorporated does not currently pay a dividend.

As of September 4, 2026, Tower Semiconductor Ltd. had a $25.1 billion market cap, putting it in the 88th percentile of all stocks. Tower Semiconductor Ltd.’s stock is up 89.4% in 2026, up 6.9% in the previous five trading days and up 253.08% in the past year.

Currently, Tower Semiconductor Ltd.’s price-earnings ratio is 87.9. Tower Semiconductor Ltd.’s trailing 12-month revenue is $1.7 billion with a 16.9% net profit margin. Year-over-year quarterly sales growth most recently was 31.0%. Analysts expect adjusted earnings to reach $3.862 per share for the current fiscal year. Tower Semiconductor Ltd. does not currently pay a dividend.

How We Compare Diodes Incorporated and Tower Semiconductor Ltd. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Diodes Incorporated and Tower Semiconductor Ltd.’s stock grades to see how they measure up against one another.

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Diodes Incorporated and Tower Semiconductor Ltd.’s Quality Grades

Company	Ticker	Quality
Diodes Incorporated	DIOD	B
Tower Semiconductor Ltd.	TSEM	B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Diodes Incorporated has a Quality Score of 79, which is Strong. Tower Semiconductor Ltd. has a Quality Score of 68, which is Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Diodes Incorporated and Tower Semiconductor Ltd. have a grade of B. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Diodes Incorporated and Tower Semiconductor Ltd.’s Momentum Grades

Company	Ticker	Momentum
Diodes Incorporated	DIOD	B
Tower Semiconductor Ltd.	TSEM	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Diodes Incorporated has a Momentum Score of 76, which is Strong. Tower Semiconductor Ltd. has a Momentum Score of 96, which is Very Strong.

The Momentum Grade Winner: Tower Semiconductor Ltd.

As you can clearly see from the Momentum Grade breakdown above, Tower Semiconductor Ltd. is considered to have stronger momentum compared to Diodes Incorporated. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Tower Semiconductor Ltd. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Diodes Incorporated and Tower Semiconductor Ltd.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Diodes Incorporated	DIOD	A
Tower Semiconductor Ltd.	TSEM	A

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Diodes Incorporated has a Earnings Estimate Score of 94, which is Very Positive. Tower Semiconductor Ltd. has a Earnings Estimate Score of 83, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Diodes Incorporated and Tower Semiconductor Ltd. have a grade of A. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Diodes Incorporated or Tower Semiconductor Ltd. is a better fit.

Other Diodes Incorporated and Tower Semiconductor Ltd. Grades

In addition to Momentum, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Diodes Incorporated and Tower Semiconductor Ltd. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Diodes Incorporated or Tower Semiconductor Ltd. Stock?

Overall, Diodes Incorporated stock has a Momentum Score of 76, Estimate Revisions Score of 94 and Quality Score of 79.

Tower Semiconductor Ltd. stock has a Momentum Score of 96, Estimate Revisions Score of 83 and Quality Score of 68.

Comparing Diodes Incorporated and Tower Semiconductor Ltd.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.