The AI selloff mislabeled Vishay: its record quarter came from factories and weapons programs
Democrats' post-midterm calls for a data-center moratorium knocked 15.2% off the component maker alongside Seagate and Western Digital. AI is a single-digit share of Vishay's sales; the record quarter was industrial power and defense, with customers ordering 18 months ahead.
Richard Tangthree-minute read
The market spent Thursday repricing Vishay Intertechnology+4.45% — Vishay Intertechnology, up 4.45 percent today as an AI data-center stock, and the label does not fit. Shares of the maker of resistors, capacitors, inductors and diodes fell 15.2% alongside Seagate−1.23% — Seagate, down 1.23 percent today and Western Digital−1.06% — Western Digital, down 1.06 percent today after Senator Bernie Sanders demanded a "national data center moratorium now" 12. Texas governor-elect Gina Hinojosa promised a freeze on new data-center approvals in a state that holds about a quarter of planned US capacity 1.
Vishay had reported record quarterly revenue the day before, $978.9 million 3. Its AI business, sized for the first time on this week's earnings call, is heading toward about $200 million a year 4. That is about 5% of sales 5.
Revenue has climbed for eight straight quarters to a record $978.9 million
Data
| Revenue | |
|---|---|
| Q4 '23 | $785.24M |
| Q1 '24 | $746.28M |
| Q2 '24 | $741.24M |
| Q3 '24 | $735.35M |
| Q4 '24 | $714.72M |
| Q1 '25 | $715.24M |
| Q2 '25 | $762.25M |
| Q3 '25 | $790.64M |
| Q4 '25 | $800.92M |
| Q1 '26 | $839.24M |
| Q2 '26 | $888.58M |
| Q3 '26 | $978.94M |
The record quarter was built on factory floors
Industrial customers did the work: smart-grid, high-voltage DC and factory-automation programs lifted industrial revenue 43% from a year ago 4. Aerospace and defense rose 23% as contractors restocked funded weapons programs 4. The Americas ended the quarter with a book-to-bill of 1.64 4.
Backlog now covers 6.6 months of sales, and some customers are ordering 18 months ahead to secure 2027 supply 4. Distribution consumption ran 57% ahead of last year on flat shelf inventory, which is consumption, not hoarding 4. Chief executive Joel Smejkal says no customer now lists Vishay as a risk supplier; in past upcycles it was first on those lists, and capacity staged before this cycle is why 4.
The record quarter was led by factory power, not AI racks
Industrial and defense drove the record; AI is a single-digit share of sales
Data
| Value | |
|---|---|
| Industrial | 43% |
| Aerospace and defense | 23% |
| Healthcare | 13% |
| Automotive | 7% |
The AI link is real physics, and a small business
The AI exposure is a mechanism rather than a slogan. As server power stages push to higher voltages and switching frequencies, each board needs more current-sense resistors, power resistors and high-voltage capacitors, which is why AI revenue is doubling off a small base 45.
One layer down the supply chain the same physics binds: Victory Giant, a Chinese printed-circuit-board maker, said this week that 2027 demand from its North American and ASIC customers already slightly exceeds its capacity, with high-end orders queued to 2028 6. A moratorium slows future racks; it does nothing for the boards already ordered.
What would actually break the story
The real cautions sit in Vishay's own disclosure, not in Washington. Book-to-bill has eased three straight quarters, from 1.34 to 1.29 5. The 10-Q says fourth-quarter free cash flow turns negative as a $134 million receivables-sale program is unwound 7. The market has also rendered its own verdict: the stock opened Friday at $23.27 8, against the $50 a share Vishay itself charged in a July fundraise 7.
Analysts cited by Reuters doubt any legislation could meaningfully stall construction 9. The brake is a projection; the 18-month orders are an observation 9. Watch book-to-bill: if it keeps sliding, the upcycle weakens without Washington's help. Until then, Thursday priced a headline onto an order book.
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