Trading Analysis Report: VSH
- Analysis date: 2026-06-01
- Processed decision: Hold
- Price Target: 42
I. Analyst Team Reports
Market Analyst
Market Report
Vishay Intertechnology (VSH) traded at $52.05 on May 29, 2026. yfinance showed a 52-week range of $11.77-$55.24, a 50-day average of $28.95, and a 200-day average of $19.43.
The stock has already rerated aggressively. The local yfinance history showed a 269.9% one-year return and 240.4% YTD return.
VSH fits the semiconductor queue because it manufactures discrete semiconductors and passive electronic components. Its AI linkage is indirect but relevant through AI-related power applications, computing, industrial automation, automotive electrification, power management, and infrastructure electronics.
Market read: Hold with a $42 target. The cyclical recovery is visible, but the stock is already far above the available yfinance analyst target of $34.00.
Sentiment Analyst
Sentiment Report
Sentiment improved after Q1 2026 results and Q2 guidance.
Q1 2026 revenue was $839.2 million, up from $800.9 million in Q4 2025 and $715.2 million in Q1 2025. Gross margin was 21.0%, and GAAP EPS was $0.05.
Order indicators were strong. Book-to-bill was 1.34 overall, with 1.47 for semiconductors and 1.23 for passive components. Backlog at quarter end was 5.7 months.
Q2 2026 outlook calls for revenue of $875-$905 million and gross margin of 22.0% plus or minus 50 basis points.
Sentiment read: Hold because business momentum is improving, but price momentum has moved well ahead of reported profitability.
News Analyst
News Report
The key current source is Vishay's May 13, 2026 Q1 results release.
Q1 gross profit was $176.6 million, compared with $156.8 million in Q4 2025 and $135.6 million in Q1 2025. Q1 operating income was $22.1 million, and operating margin was 2.6%.
Management said Vishay 3.0 investments expanded capacity in high-growth, high-margin products and positioned the company to participate in the market upcycle. The near-term priority is increasing backlog turns while maintaining competitive lead times as consumption accelerates.
The FY2025 10-K says Vishay manufactures one of the world's largest portfolios of discrete semiconductors and passive electronic components. Markets include automotive, industrial, computing, consumer, telecommunications, military, aerospace, and healthcare.
News read: VSH is moving into an upcycle, but the margin and cash-flow profile still needs to improve to justify the latest stock price.
Fundamentals Analyst
Fundamentals Report
VSH fundamentals are cyclical and still margin-sensitive.
yfinance showed market cap of approximately $7.08 billion, enterprise value of approximately $7.71 billion, total revenue of approximately $3.19 billion, operating cash flow of approximately $231.9 million, free cash flow of approximately -$87.3 million, total cash of approximately $479.5 million, and total debt of approximately $1.10 billion.
The same snapshot showed revenue growth of 17.3%, gross margin of 19.9%, operating margin of 2.4%, profit margin of 0.1%, forward P/E of 33.77x, and price/sales of 2.22x.
Products include MOSFETs, diodes, optoelectronic components, resistors, inductors, capacitors, and sensors.
Fundamental read: Hold because revenue recovery and book-to-bill are encouraging, but current margins, negative free cash flow, and valuation after the rally leave little margin of safety.
II. Research Team Decision
Bull Researcher
Bull Research
The bull case is that Vishay is entering a semiconductor and passive-component upcycle with better capacity, lead times, and backlog coverage.
Q1 revenue improved sequentially and year over year. Book-to-bill of 1.34 and backlog of 5.7 months show demand visibility. Semiconductor book-to-bill of 1.47 is especially strong.
Q2 guidance of $875-$905 million implies another sequential step-up from Q1's $839.2 million, and gross margin guidance of around 22.0% suggests margin recovery.
The company has exposure to automotive, industrial, computing, telecommunications, healthcare, aerospace, and AI-related power applications.
Bull conclusion: VSH can keep working if backlog converts into revenue and gross margin expands faster than expected.
Bear Researcher
Bear Research
The bear case is valuation after a very large move.
The stock has gained 269.9% over one year and 240.4% YTD in the local yfinance history. It is far above the $28.95 50-day average and $19.43 200-day average.
The yfinance analyst target was only $34.00, below the latest price of $52.05. Forward P/E was 33.77x, and free cash flow was approximately -$87.3 million.
Margins are still low. Q1 operating margin was 2.6%, and yfinance showed a profit margin of only 0.1%.
Risks include semiconductor cyclicality, inventory corrections, pricing pressure, demand variability, capacity expansion execution, capital intensity, acquisition integration, supply-chain and manufacturing risk, tariffs/export controls, and macroeconomic conditions.
Bear conclusion: VSH could derate if backlog does not convert quickly or if margins do not expand enough to support the new valuation.
Research Manager
Research Manager Synthesis
The bull case is strong book-to-bill, 5.7 months of backlog, higher Q2 revenue guidance, and exposure to automotive, industrial, computing, and AI-related power applications.
The bear case is that the stock has already repriced dramatically while operating margin, free cash flow, and analyst targets remain modest.
The correct conclusion is Hold. The $42 target is above the available analyst target of $34.00 to reflect better backlog and cyclical recovery, but below the current price because the market has already priced in a strong recovery.
Synthesis: assign Hold with a $42 target.
III. Trading Team Plan
Trader
Trader View
VSH is far above the $28.95 50-day average and $19.43 200-day average, and near the $55.24 52-week high.
Upside trigger: Q2 revenue above $905 million, gross margin above 22.5%, continued semiconductor book-to-bill above 1.4, or evidence that free cash flow is turning positive.
Downside trigger: Q2 revenue below $875 million, gross margin below 21.5%, backlog conversion delays, order cancellations, margin pressure, or a broader semiconductor multiple reset.
Trading plan: Hold with a $42 6-12 month base-case target. New buying should wait for a pullback or a much stronger margin/free-cash-flow profile.
IV. Risk Management Team Decision
Aggressive Analyst
Aggressive Risk View
Aggressive investors can keep VSH exposure for semiconductor/passive-component upcycle participation.
The risk is that the stock has already priced in a large cyclical rebound.
Aggressive conclusion: Hold.
Conservative Analyst
Conservative Risk View
Conservative investors should avoid chasing VSH near the 52-week high.
The order cycle is improving, but low margins and negative free cash flow make the current valuation risky.
Conservative conclusion: Hold or trim.
Neutral Analyst
Neutral Risk View
The neutral view is valuation-aware.
VSH has better demand indicators, but the stock needs earnings and cash flow to catch up.
Neutral conclusion: Hold.
V. Portfolio Manager Decision
Portfolio Manager
Portfolio Manager Decision
Rating: Hold Price Target: 42
Horizon: 6-12 months Current Price Reference: $52.05 on 2026-05-29
Vishay Intertechnology is rated Hold. VSH is included in the web-researched semiconductor queue because it manufactures discrete semiconductors and passive electronic components. Its AI relevance is indirect but relevant through AI-related power applications, computing systems, industrial automation, automotive electrification, power management, and infrastructure electronics.
The latest major financial update is Q1 2026 results. Revenue was $839.2 million, up from $800.9 million in Q4 2025 and $715.2 million in Q1 2025. Gross margin was 21.0%, and GAAP EPS was $0.05.
Order indicators improved. Book-to-bill was 1.34 overall, with 1.47 for semiconductors and 1.23 for passive components. Backlog at quarter end was 5.7 months.
Q2 2026 outlook calls for revenue of $875-$905 million and gross margin of 22.0% plus or minus 50 basis points.
Q1 gross profit was $176.6 million, compared with $156.8 million in Q4 2025 and $135.6 million in Q1 2025. Q1 operating income was $22.1 million, and operating margin was 2.6%.
yfinance showed a latest price of $52.05, market cap of approximately $7.08 billion, enterprise value of approximately $7.71 billion, 52-week range of $11.77-$55.24, total revenue of approximately $3.19 billion, revenue growth of 17.3%, gross margin of 19.9%, operating margin of 2.4%, profit margin of 0.1%, operating cash flow of approximately $231.9 million, free cash flow of approximately -$87.3 million, total cash of approximately $479.5 million, total debt of approximately $1.10 billion, forward P/E of 33.77x, price/sales of 2.22x, mean analyst target of $34.00, and median analyst target of $34.00.
The main risks are semiconductor cyclicality, inventory corrections, pricing pressure, customer demand variability, backlog conversion risk, capacity expansion execution, capital intensity, acquisition integration, supply chain and manufacturing risk, tariffs/export controls, and macroeconomic conditions.
The $42 target recognizes strong book-to-bill, backlog visibility, and better Q2 guidance, but remains below the current price because VSH has already rerated sharply while margins and free cash flow remain weak. Hold is appropriate until earnings power catches up with the valuation.