Depositions on surfaces of semiconductor wafers of InP and GaN were performed from isooctane colloid solutions of palladium (Pd) nanoparticles (NPs) in AOT reverse micelles. Pd NPs in evaporated colloid and in layers deposited electrophoretically were monitored by SEM. Diodes were prepared by making Schottky contacts with colloidal graphite on semiconductor surfaces previously deposited with Pd NPs and ohmic contacts on blank surfaces. Forward and reverse current-voltage characteristics of the diodes showed high rectification ratio and high Schottky barrier heights, giving evidence of very small Fermi level pinning. A large increase of current was observed after exposing diodes to flow of gas blend hydrogen in nitrogen. Current change ratio about 700,000 with 0.1% hydrogen blend was achieved, which is more than two orders-of-magnitude improvement over the best result reported previously. Hydrogen detection limit of the diodes was estimated at 1 ppm H2/N2. The diodes, besides this extremely high sensitivity, have been temporally stable and of inexpensive production. Relatively more expensive GaN diodes have potential for functionality at high temperatures.