Why Vishay Intertechnology (VSH) Could Benefit From the Electronics Recovery

First Pacific Advisors' recent second-quarter 2026 investor letter revealed that Vishay Intertechnology (VSH) could benefit from the electronics recovery. The fund returned 27.02% in the first half of 2026, outperforming both the Russell 2000 Value Index and the S&P 600 Index. Small-cap earnings growth accelerated, and the small-cap technology sector surged nearly 100% in the first half of the year.

The fund's technology holdings gained 72.39%, contributing 14.87 percentage points to the fund's performance. However, Vishay Intertechnology (VSH) was noted to have experienced a one-month return of -21.67% and stock prices ranging between $11.77 and $69.47 over the past 52 weeks. The fund stated that Vishay Intertechnology (VSH) makes passive electronic components and discrete semiconductors, benefiting from the growth in electric vehicles and industrial electrification.

The company reported a year-over-year sales increase of 17% in Q1 2026, with a book-to-bill ratio of 1.34. FPA Queens Road Small Cap Value Fund believes the stock may have become overexposed to the AI trade and has reduced its position in the stock.