, /PRNewswire/ -- Analog Devices, Inc. (Nasdaq: ADI) today announced it will release financial results for the third quarter fiscal year 2026 at 7:00 a.m. Eastern time on Wednesday, August 19, 2026. Following the press release, the Company will host a conference call at 10:00 a.m. Eastern time, the same day. Vincent Roche, Chief Executive Officer and Chair, Richard Puccio, Executive Vice President and Chief Financial Officer, and Jeff Ambrosi, Head of Investor Relations, Senior Director, will discuss ADI's results and business outlook.
The press release, live conference call and subsequent archived copies can be accessed on Analog Devices' Investor Relations website at investor.analog.com. To participate in the live conference call, please pre-register at: register-conf.media.server.com. Upon registering, you will be emailed a dial-in number and unique PIN.
About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today's innovators stay Ahead of What's Possible. Learn more at www.analog.com and on LinkedIn and X.
Jeff Ambrosi
Head of Investor Relations, Senior Director
Analog Devices, Inc.
781-461-3282
[email protected]
In the latest trading session, Analog Devices (ADI - Free Report) closed at $382.81, marking a +2.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 1.29%.
Prior to today's trading, shares of the semiconductor maker had lost 16.39% lagged the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
The upcoming earnings release of Analog Devices will be of great interest to investors. The company is expected to report EPS of $3.33, up 62.44% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.92 billion, indicating a 36.25% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.42 per share and revenue of $14.55 billion, indicating changes of +59.44% and +32.03%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.85% upward. At present, Analog Devices boasts a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 29.98. This indicates a discount in contrast to its industry's Forward P/E of 47.35.
It is also worth noting that ADI currently has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 0.96 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 17, finds itself in the top 7% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Analog Devices?The final step today is to look at a stock that meets our ESP qualifications. Analog Devices (ADI - Free Report) earns a #1 (Strong Buy) 29 days from its next quarterly earnings release on August 19, 2026, and its Most Accurate Estimate comes in at $3.41 a share.
ADI has an Earnings ESP figure of +2.37%, which, as explained above, is calculated by taking the percentage difference between the $3.41 Most Accurate Estimate and the Zacks Consensus Estimate of $3.33. Analog Devices is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ADI is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Pinterest (PINS - Free Report) as well.
Pinterest is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 4, 2026. PINS' Most Accurate Estimate sits at $0.37 a share 14 days from its next earnings release.
Pinterest's Earnings ESP figure currently stands at +1.65% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.36.
Because both stocks hold a positive Earnings ESP, ADI and PINS could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Andra AP fonden grew its stake in shares of Analog Devices, Inc. (NASDAQ:ADI – Free Report) by 94.0% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 92,666 shares of the semiconductor company’s stock after buying an additional 44,900 shares during the period. Andra AP fonden’s holdings in Analog Devices were worth $29,481,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors and hedge funds also recently bought and sold shares of the company. Riverbend Wealth Management LLC raised its holdings in shares of Analog Devices by 2.2% during the 1st quarter. Riverbend Wealth Management LLC now owns 1,245 shares of the semiconductor company’s stock worth $396,000 after acquiring an additional 27 shares in the last quarter. Sound Income Strategies LLC lifted its position in Analog Devices by 12.0% during the first quarter. Sound Income Strategies LLC now owns 281 shares of the semiconductor company’s stock valued at $90,000 after purchasing an additional 30 shares during the last quarter. 1620 Investment Advisors Inc. grew its stake in shares of Analog Devices by 5.0% in the 4th quarter. 1620 Investment Advisors Inc. now owns 671 shares of the semiconductor company’s stock worth $182,000 after buying an additional 32 shares in the last quarter. Covestor Ltd increased its holdings in shares of Analog Devices by 14.1% in the 4th quarter. Covestor Ltd now owns 275 shares of the semiconductor company’s stock worth $75,000 after buying an additional 34 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC raised its position in shares of Analog Devices by 3.4% during the 1st quarter. Kohmann Bosshard Financial Services LLC now owns 1,026 shares of the semiconductor company’s stock valued at $326,000 after buying an additional 34 shares in the last quarter. 86.81% of the stock is currently owned by institutional investors.
Analog Devices Stock Down 0.8% Shares of NASDAQ:ADI opened at $372.46 on Tuesday. The company has a quick ratio of 1.34, a current ratio of 1.75 and a debt-to-equity ratio of 0.21. The business’s 50 day moving average is $405.42 and its 200 day moving average is $358.22. The stock has a market cap of $181.42 billion, a P/E ratio of 55.34, a price-to-earnings-growth ratio of 1.05 and a beta of 1.18. Analog Devices, Inc. has a 52-week low of $218.37 and a 52-week high of $445.91.
Analog Devices (NASDAQ:ADI – Get Free Report) last issued its earnings results on Wednesday, May 20th. The semiconductor company reported $3.09 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.20. Analog Devices had a return on equity of 14.37% and a net margin of 26.01%.The business had revenue of $3.62 billion during the quarter, compared to analysts’ expectations of $3.51 billion. During the same period in the prior year, the business earned $1.85 EPS. The business’s revenue for the quarter was up 37.2% compared to the same quarter last year. Analog Devices has set its Q3 2026 guidance at 3.150-3.450 EPS. Sell-side analysts predict that Analog Devices, Inc. will post 12.43 EPS for the current year.
Analog Devices Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a dividend of $1.10 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.2%. Analog Devices’s dividend payout ratio is presently 65.38%.
Insiders Place Their Bets In other Analog Devices news, CEO Vincent Roche sold 30,000 shares of Analog Devices stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $415.13, for a total transaction of $12,453,900.00. Following the completion of the sale, the chief executive officer owned 137,538 shares of the company’s stock, valued at approximately $57,096,149.94. The trade was a 17.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Karen Golz sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $389.83, for a total value of $389,830.00. Following the completion of the sale, the director owned 11,019 shares in the company, valued at approximately $4,295,536.77. This represents a 8.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 103,858 shares of company stock valued at $42,062,730 in the last 90 days. Corporate insiders own 0.36% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts recently commented on the company. Barclays lifted their price target on Analog Devices from $430.00 to $450.00 and gave the stock an “overweight” rating in a research report on Thursday, May 21st. Wolfe Research reaffirmed an “outperform” rating and issued a $475.00 price objective on shares of Analog Devices in a research note on Thursday, May 21st. Sanford C. Bernstein reissued a “market perform” rating and set a $430.00 target price on shares of Analog Devices in a research report on Thursday, May 21st. Arete Research upgraded Analog Devices from a “neutral” rating to a “buy” rating and set a $389.00 price target on the stock in a report on Monday, March 30th. Finally, Wall Street Zen upgraded Analog Devices from a “hold” rating to a “buy” rating in a research report on Sunday, May 24th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $441.00.
Get Our Latest Research Report on Analog Devices
Analog Devices Company Profile (Free Report)
Analog Devices, Inc (NASDAQ: ADI) is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.
The company’s product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.
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On July 20, 2026, we present a DCF analysis for Analog Devices Inc (ADI), a company that has shown significant price performance over the past year. The stock h
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Analog Devices is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Analog Devices is one of 613 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Analog Devices is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ADI's full-year earnings has moved 9.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, ADI has moved about 40.3% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 13.8%. As we can see, Analog Devices is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is Ametek . The stock is up 15.6% year-to-date.
For Ametek, the consensus EPS estimate for the current year has increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Analog Devices is a member of the Semiconductor - Analog and Mixed industry, which includes 10 individual companies and currently sits at #15 in the Zacks Industry Rank. On average, this group has gained an average of 42.2% so far this year, meaning that ADI is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Ametek falls under the Electronics - Testing Equipment industry. Currently, this industry has 4 stocks and is ranked #20. Since the beginning of the year, the industry has moved +19.8%.
Analog Devices and Ametek could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
In the latest close session, Analog Devices (ADI - Free Report) was down 2.67% at $380.53. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The semiconductor maker's shares have seen a decrease of 5.67% over the last month, not keeping up with the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
The upcoming earnings release of Analog Devices will be of great interest to investors. It is anticipated that the company will report an EPS of $3.34, marking a 62.93% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.93 billion, reflecting a 36.28% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.43 per share and revenue of $14.58 billion, indicating changes of +59.56% and +32.29%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.89% higher within the past month. Analog Devices is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 31.46. This indicates a discount in contrast to its industry's Forward P/E of 50.87.
It is also worth noting that ADI currently has a PEG ratio of 1.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ADI's industry had an average PEG ratio of 1 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Key Takeaways STM is expanding AI infrastructure and automotive sensing with new partnerships and acquisitions.ADI is benefiting from AI, industrial automation and power management demand across key end markets.Both companies expect stronger 2026 growth as AI and industrial investments support semiconductor demand. The semiconductor industry is benefiting from rising investments in artificial intelligence (“AI”), industrial automation, electrification and connected devices, creating attractive opportunities for companies with diversified chip portfolios. While the industry's long-term growth outlook remains favorable, investors are increasingly focusing on businesses that combine innovation with resilient end-market demand and consistent financial execution.
Against this backdrop, STMicroelectronics N.V. (STM - Free Report) and Analog Devices, Inc. (ADI - Free Report) stand out as two prominent semiconductor players, though they operate with distinct business models. STMicroelectronics has a strong presence in automotive and industrial semiconductors, with growing exposure to silicon carbide, microcontrollers and power management solutions. Analog Devices, meanwhile, specializes in high-performance analog, mixed-signal and power management chips that serve industrial, automotive, communications and healthcare markets, generating stable cash flows through its diversified customer base.
Both companies are well positioned to capitalize on secular trends such as AI-enabled edge computing, vehicle electrification and factory automation. However, differences in growth prospects, valuation, profitability and exposure to cyclical end markets make the investment case for each stock unique. Let's compare STM and ADI across these key factors to determine which semiconductor stock looks more attractive for investors today.
The Case for STMSTMicroelectronics is strengthening its long-term growth profile by expanding beyond the traditional automotive and industrial markets into fast-growing artificial intelligence infrastructure. During the first quarter of 2026, management highlighted strong booking momentum across all end markets, with the book-to-bill ratio remaining well above one and distributor inventories returning to normal levels. The company expects double-digit revenue growth in 2026, supported by engaged customer programs and a growing pipeline of AI-related opportunities rather than a broad industry recovery alone.
STMicroelectronics is also building a stronger competitive position through product expansion and strategic partnerships. Management expects data center revenues to exceed $500 million in 2026 and surpass $1 billion in 2027, driven by growing demand for power semiconductors, silicon photonics, microcontrollers and optical connectivity solutions. A multiyear commercial engagement with Amazon Web Services, collaboration with NVIDIA on AI infrastructure and robotics and the acquisition of NXP's MEMS sensor business further enhance STM's exposure to high-growth markets, including cloud computing, factory automation and advanced automotive sensing.
Beyond revenue growth, STMicroelectronics sees improving profitability as production volumes recover and its manufacturing optimization program progresses. The company expects gross margin to improve sequentially through the remainder of 2026, supported by better factory utilization, a favorable product mix and increasing contributions from AI-focused products. Management also pointed to continued momentum in automotive silicon carbide, industrial microcontrollers, low-earth-orbit satellite applications and advanced sensing technologies, providing multiple growth drivers that could support earnings expansion over the next several years.
The Case for ADIAnalog Devices continues to strengthen its position as a leading analog semiconductor company by capitalizing on both cyclical recovery and long-term secular trends. The company delivered record second quarter fiscal 2026 revenues and earnings, driven by broad-based demand across industrial, automotive and communications markets. Management highlighted that its diversified business model, resilient supply chain and continued investments in research and development are enabling ADI to capture rising customer demand while supporting growth opportunities.
A major pillar of ADI's growth story is its expanding exposure to AI and intelligent industrial systems. The company is seeing robust momentum in AI-driven data center infrastructure, where both its optical connectivity and power management businesses are growing rapidly. Beyond AI, Analog Devices is benefiting from increasing semiconductor content in factory automation, robotics, energy infrastructure, healthcare equipment and aerospace and defense applications. Analog Devices’ planned acquisition of Empower Semiconductor is expected to further strengthen the power management portfolio and enhance its ability to serve next-generation AI computing platforms.
The company is also backed by exceptional profitability and disciplined execution. Analog Devices reported record gross and operating margins, reflecting favorable product mix, pricing strength and efficient manufacturing. Management remains optimistic about continued above-seasonal growth, supported by strong order trends, healthy backlog and lean customer inventories across key end markets. Combined with its long product life cycles and expanding presence in high-value applications, ADI appears well positioned to deliver durable revenue growth and consistent shareholder returns over the long run.
What Does the Zacks Consensus Estimate Indicate for STM and ADI?The Zacks Consensus Estimate projects STMicroelectronics' 2026 revenues to grow 22.1% year over year, while earnings per share are expected to surge 135.9% to $1.25 from 53 cents reported in 2025. In addition, analysts have raised the company's 2026 earnings estimates over the past 30 days, indicating improving confidence in its outlook.
Image Source: Zacks Investment Research
For Analog Devices, the Zacks Consensus Estimate calls for 32.3% year-over-year revenue growth and 58.2% rise in fiscal 2026 earnings per share. However, analysts have left ADI's fiscal 2026 earnings estimates unchanged over the past 30 days, implying a stable earnings outlook.
Image Source: Zacks Investment Research
Price Performance & ValuationSTM stock has surged 150.2% in the past six months compared with the S&P 500’s growth of 8.1%. Conversely, ADI’s shares have risen 30.8% in the same time frame.
Price Performnace
Image Source: Zacks Investment Research
STM is trading at a forward 12-month price-to-earnings ratio of 33.66X, above its median of 30.80X over the last year. ADI’s forward earnings multiple sits at 28.47X, down from its median of 30.45X over the same time frame.
P/E (F12M)
Image Source: Zacks Investment Research
Which Stock Has the Edge?Both STMicroelectronics and Analog Devices are well positioned to benefit from long-term semiconductor growth trends, supported by expanding AI opportunities, industrial automation and electrification. ADI stands out for its diversified portfolio, superior profitability and resilient business model, making it an attractive long-term investment.
However, STM appears to have a slight edge at present, driven by stronger earnings momentum, improving analyst estimate revisions, accelerating AI-related growth initiatives and stronger recent stock performance. Both STM and ADI currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On July 13, 2026, we conducted a DCF analysis for Analog Devices Inc (ADI) to assess its intrinsic value in light of its recent price performance. Over the past
In the latest trading session, Analog Devices (ADI - Free Report) closed at $393.64, marking a +2.14% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.
Shares of the semiconductor maker have depreciated by 1.85% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.59%, and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.33, marking a 62.44% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.93 billion, showing a 36.28% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.41 per share and a revenue of $14.58 billion, signifying shifts of +59.31% and +32.29%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Analog Devices is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 31.05. For comparison, its industry has an average Forward P/E of 48.47, which means Analog Devices is trading at a discount to the group.
We can additionally observe that ADI currently boasts a PEG ratio of 1.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 1.01 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
In the latest trading session, Analog Devices (ADI - Free Report) closed at $379.03, marking a -2.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
The semiconductor maker's shares have seen a decrease of 3.73% over the last month, not keeping up with the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. On that day, Analog Devices is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 62.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.93 billion, indicating a 36.28% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.41 per share and a revenue of $14.58 billion, indicating changes of +59.31% and +32.29%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Analog Devices possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 31.33. This expresses a discount compared to the average Forward P/E of 52.25 of its industry.
Meanwhile, ADI's PEG ratio is currently 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 1.01.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Stock screening is commonly deployed by investors to ‘cut through the noise.’ The approach is especially useful when considering the thousands of options to choose from, which can often overwhelm investors.
Taking a different angle, screening is essentially the same idea as constructing a grocery list. A list helps you easily navigate a store, allowing you to quickly find what you’re looking for without wasting a chunk of time.
Still, screening is often seen as overwhelming and confusing, particularly when investors are unsure what to look for in a company. In addition, it’s not as simple as a one-screen-fits-all approach, as market participants all have different preferences.
Let’s take a closer look at screening and a few parameters available at Zacks that investors can deploy to find the stocks that they want.
Screening Parameters
Parameters can be seen as the ‘ingredients’ of a recipe, excluding any irrelevant information. Digging deeper, parameters can be fine-tuned for any investing style, whether that be momentum, value, growth, or income-based.
Value Investing
Value investors can add several parameters to their screens to find high-quality stocks trading at a discount. A few of these include the Price-to-Earnings (P/E) ratio, the Price-to-Sales (P/S) ratio, and the Price-to-Book (P/B) ratio. Zacks has several premium screens tailored toward value-focused strategies that have these parameters built in.
Momentum Investing
Momentum investing is all about riding the current trend, jumping into stocks that have enjoyed buying pressure. A few parameters investors can deploy for momentum-focused screens include the percentage price change in the stock over the last month, average volume, and price as a percentage of the 52-week high-low range. Zacks has many momentum-based screens with these parameters built in.
Growth Investing
Growth-oriented strategies are aimed at companies expected to grow their sales and earnings at an above-average level, a development that commonly leads to share outperformance. A few key parameters for growth investors include last year’s earnings and sales growth rates, expected growth rates for the current year, and the long-term expected EPS growth rate.
One of the Zacks premium growth screens provided us with a few stocks upon running: Dell Technologies (DELL - Free Report) and Analog Devices (ADI - Free Report) – two great examples of companies that have enjoyed rapid growth.
Income Investing
Income-focused investing is all about passive income, with dividend-paying stocks commonly being more ‘stable.’ Many dividend-paying companies are mature and, at the end of their growth cycle, opting to share profits with shareholders rather than reinvesting for the future. A few parameters investors can deploy when searching for dividend-paying stocks include current dividend yield and the 5-year historical dividend growth rate. No different than those above, Zacks already has several premium income-focused screens available for use.
Bottom Line
Screens are very useful tools for investors to filter out the noise, allowing for full focus on preferred parameters. The process can often be overwhelming, though, with some unsure of what parameters to include.
However, for those not interested in building out an individual screen, Zacks has many pre-built screens tailored toward common strategies, a list that includes growth, value, momentum, and income.
, /PRNewswire/ -- Analog Devices, Inc. (NASDAQ: ADI) today announced the completion of its acquisition of Empower Semiconductor. The combination further strengthens ADI's position as a leading strategic, system-level grid-to-core power partner across the entire AI ecosystem, expanding ADI's total addressable market and capabilities in AI compute power delivery.
Commentary
Analog Devices completes acquisition of Empower Semiconductor "Today marks an exciting milestone as we welcome the Empower team to ADI and take an important step forward in solving one of the most complex challenges in modern electronics – power delivery for the AI era," said Vincent Roche, CEO and Chair at ADI. "AI infrastructure is fundamentally reshaping how power must be delivered, with energy now one of the most persistent constraints to scaling next-generation systems. Empower's breakthrough technology is designed to directly address this bottleneck, unlocking new levels of efficiency and performance for AI processors. Leveraging ADI's technology and scale, we will help customers rearchitect their power systems and achieve the compute densities next-generation AI demands. The impact will extend well beyond AI data centers to any domain where energy constrains what is possible." About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today's innovators stay Ahead of What's Possible. Learn more at www.analog.com and on LinkedIn and X.
Forward-Looking Statements
This press release contains forward-looking statements, which address a variety of subjects including, for example, the expected benefits of the transaction; ADI's expected product offerings and benefits of those offerings, product development, and technical advances resulting from the transaction; and other future events. Statements that are not historical facts, including statements about our beliefs, plans, and expectations, are forward-looking statements. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: unforeseen or unknown liabilities; costs or expenses related to the transaction; the inability to retain key personnel; difficulties in integrating the acquired business; the risk that expected benefits of the transaction may not be realized or may take longer to realize than expected; and uncertainty as to the long-term value of our common stock. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Forward-looking statements represent management's current expectations and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
CONTACT:
Jeff Ambrosi
Senior Director, Investor Relations
Analog Devices
[email protected]
(781) 461-3282
Ferda Millan
Global PR and External Communications
Analog Devices
[email protected]
(408) 373-1854
Key Takeaways Global semiconductor sales hit a record $120.6B in May, extending 15 straight months of gains.ADI, MCHP, TXN and TSM are highlighted for growth as AI and chip demand remain strong.AI, automotive demand and expanding tech infrastructure continue to support semiconductor sales. The dream run for the semiconductor industry continues in 2026, with sales multiplying in each of the first five months of the year. Continued enthusiasm surrounding artificial intelligence has been powering demand for semiconductors, resulting in a robust jump in revenues.
Given this scenario, it would be ideal to invest in semiconductor stocks, such as Analog Devices (ADI - Free Report) , Microchip Technology (MCHP - Free Report) , Texas Instruments (TXN - Free Report) and Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , which have great potential for growth this year.
Dream Run for the Semiconductor IndustryGlobal semiconductor sales totaled $120.6 billion in May, growing 9.2% sequentially from April’s total of $110.5 billion, the Semiconductor Industry Association (SIA) reported on Monday. On a year-over-year basis, sales surged a whopping 104.1% from May 2025’s total of $59.1 billion.
Semiconductor sales have now increased in all five months of the year, recording their 15th straight month of gains. John Neuffer, SIA president and CEO, said, “The global semiconductor market continued to grow substantially in May, hitting the highest-ever recorded monthly sales total and increasing on a month-to-month basis for the 15th consecutive month in May.”
AI-focused semiconductors have been taking a beating lately as concerns grow over their sustainability. Investors have been rotating out of semiconductor stocks and taking refuge in defensive picks.
However, the decline appears to be temporary as Wall Street has witnessed similar tech and semiconductor sell-offs in the past. Even then, semiconductor stocks have been responsible for the broader market rally over the past few years.
The jump in May and April follows a stellar first quarter for the semiconductor industry. Semiconductor sales totaled $298.5 billion in the first quarter, up 25% sequentially.
Semiconductors have become essential to almost every modern and emerging technology, powering everything from the Internet of Things (IoT) and 6G networks to artificial intelligence.
Rising demand from the automotive industry has further strengthened chip sales. At the same time, the rapidly expanding AI market, which is still in its early growth phase, is driving leading technology companies to invest billions of dollars in AI development and infrastructure.
As these firms continue to ramp up spending on AI infrastructure, investor optimism toward semiconductor stocks has remained strong.
4 Semiconductor Stocks With UpsideAnalog DevicesAnalog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.
Analog Devices’ expected earnings growth rate for the current year is 59.3%. The Zacks Consensus Estimate for current-year earnings has improved 11.6% over the past 60 days. ADI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Microchip TechnologyMicrochip Technology has been consistently benefiting from its strength in the analog and microcontroller businesses. MCHP’s dominance in 8, 16, and 32-bit PIC microcontrollers remains a major driver of top-line and bookings growth. Microchip Technology has acquired notable companies like Tekron International, Microsemi and Atmel to add strength to its product offerings.
Microchip Technology’s expected earnings growth rate for the current year is 88.4%. The Zacks Consensus Estimate for current-year earnings has improved 20.2% over the past 60 days. MCHP currently has a Zacks Rank #1.
Texas InstrumentsTexas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Management strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.
Texas Instruments’ expected earnings growth rate for the current year is 40.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. Currently, TXN carries a Zacks Rank #2.
Taiwan Semiconductor Manufacturing Company LimitedTaiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit (“IC”) foundry. TSM manufactures ICs for its customers based on its proprietary designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.
Taiwan Semiconductor Manufacturing Company Limited’s expected earnings growth rate for the current year is 44.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. TSM presently carries a Zacks Rank #2.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Cummins Inc. (CMI - Free Report) : This power solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.6% over the last 60 days.
Analog Devices, Inc. (ADI - Free Report) : This integrated circuit company has seen the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days.
WidePoint Corporation (WYY - Free Report) : This technology management services company has seen the Zacks Consensus Estimate for its current year earnings increasing 25% over the last 60 days.
Concrete Pumping Holdings, Inc. (BBCP - Free Report) : This concrete pumping and waste management company has seen the Zacks Consensus Estimate for its current year earnings increasing 41.7% over the last 60 days.
Clear Secure, Inc. (YOU - Free Report) : This identity verification company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.9% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices (ADI - Free Report) ended the recent trading session at $388.98, demonstrating a -2.06% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.66%.
The semiconductor maker's shares have seen a decrease of 6.15% over the last month, not keeping up with the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. In that report, analysts expect Analog Devices to post earnings of $3.33 per share. This would mark year-over-year growth of 62.44%. Our most recent consensus estimate is calling for quarterly revenue of $3.93 billion, up 36.28% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.41 per share and a revenue of $14.58 billion, representing changes of +59.31% and +32.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Analog Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Analog Devices holds a Zacks Rank of #2 (Buy).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 32. This denotes a discount relative to the industry average Forward P/E of 57.47.
It is also worth noting that ADI currently has a PEG ratio of 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 4, this industry ranks in the top 2% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Analog Devices (ADI - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Analog Devices is a member of our Computer and Technology group, which includes 613 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ADI's full-year earnings has moved 10.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ADI has returned about 46.5% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 18.2% on average. This shows that Analog Devices is outperforming its peers so far this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Allegro MicroSystems, Inc. (ALGM - Free Report) . The stock is up 163.9% year-to-date.
For Allegro MicroSystems, Inc., the consensus EPS estimate for the current year has increased 10.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Analog Devices belongs to the Semiconductor - Analog and Mixed industry, which includes 10 individual stocks and currently sits at #4 in the Zacks Industry Rank. Stocks in this group have gained about 54.4% so far this year, so ADI is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Allegro MicroSystems, Inc. belongs to the Electronics - Semiconductors industry. This 50-stock industry is currently ranked #56. The industry has moved +59.5% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Analog Devices and Allegro MicroSystems, Inc. as they could maintain their solid performance.
Key Takeaways ADI generated $2.24B operating cash flow in fiscal 2026's first six months, up 15% year over year.Analog Devices keeps capital spending modest, supporting strong cash conversion and growth. ADI is building strategic inventory to meet demand in data center and automated test equipment markets. Analog Devices (ADI - Free Report) has a strong cash flow profile supported by high gross margins, low capital intensity and disciplined capital allocation. During the first six months of fiscal 2026, the company generated operating cash flow of $2.24 billion, up 15% year over year, while capital expenditures increased only modestly to $247 million.
Analog Devices’ operating cash flow of $5.1 billion and free cash flow were $4.6 billion on a trailing 12-month basis or 40% and 36% of revenue, respectively. This highlights ADI's ability to convert a significant portion of its revenues into cash. The improvement in operating cash flow was primarily driven by a sharp increase in profitability.
ADI's modest capital expenditure requirements, expected to remain within 4-6% of annual revenues, continue to support exceptional cash conversion. Combined with $3.4 billion in cash, net leverage of just 0.8x and disciplined shareholder distributions, ADI remains well-positioned to fund growth initiatives while maintaining one of the highest-quality cash flow profiles in the analog semiconductor industry.
However, in the past six months, ADI’s strong earnings were partially offset by a significant working capital outflow, as operating assets and liabilities consumed $799 million of cash compared with just $36 million in the prior year. Beyond this risk, Analog Devices’ higher inventories and receivables reflected strategic inventory builds and increased shipments rather than weakening demand,
ADI ended the quarter with inventory at 168 days and channel inventory stable at six to seven weeks, levels that management considers healthy and manageable. The company is intentionally building strategic inventory to support future demand, particularly as data center and automated test equipment markets continue to experience strong growth.
How Competitors Fare Against Analog DevicesAnalog Devices competes with Texas Instruments (TXN - Free Report) and Broadcom (AVGO - Free Report) in the semiconductor market. Texas Instruments competes with ADI in industrial signal chains, precision sensing and power management, especially in PLCs, factory automation and motor control.
Broadcom is strong in networking, data center, broadband, Wi-Fi, Ethernet PHYs and switches. In the communications segment, Broadcom mainly competes with its high-speed connectivity, optical/wireline networking equipment, and cable or broadband IC portfolio.
Despite strong competition from Texas Instruments and Broadcom, Analog Devices has enough scope to grow in the communications space as new 5G technology is being introduced, which gives scope for expansion to all the players.
ADI’s Price Performance, Valuation and EstimatesShares of ADI have gained 62.6% in the past 12 months compared with the Zacks Semiconductor - Analog and Mixed industry’s growth of 61.9%.
ADI Past 12-Month Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 11.93X, higher than the industry’s average of 9.52X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 59% and 14%, respectively. The consensus estimate for fiscal 2026 and 2027 has remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
ADI currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK--(BUSINESS WIRE)--ADI Predictstreet, the Official Prediction Market Partner of the FIFA World Cup 2026™, today announced a strategic branding and product partnership with Kalshi, the world's leading prediction market exchange. This collaboration will expand prediction markets globally, providing billions of fans with new ways to engage with the world's biggest sporting event. Heading into the knockout stage, Kalshi will be co-branded alongside ADI Predictstreet in stadium, TV, and onli.
In the latest close session, Analog Devices (ADI - Free Report) was up +1.15% at $417.93. This change outpaced the S&P 500's 0.01% loss on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the semiconductor maker had lost 0.89% over the past month, outpacing the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. In that report, analysts expect Analog Devices to post earnings of $3.33 per share. This would mark year-over-year growth of 62.44%. Alongside, our most recent consensus estimate is anticipating revenue of $3.93 billion, indicating a 36.28% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.41 per share and revenue of $14.58 billion, which would represent changes of +59.31% and +32.29%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.8% higher. Analog Devices presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 33.29. This denotes a discount relative to the industry average Forward P/E of 59.62.
One should further note that ADI currently holds a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 5, positioning it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Key Takeaways ADI's Q2 fiscal 2026 gross margin rose to 73% from 69.4%, while operating margin reached 49%.ADI's Industrial segment, 50% of revenue, grew 56% year over year and 20% sequentially.ADI's Data Center revenues jumped more than 90%, driven by demand for AI infrastructure solutions. Analog Devices’ (ADI - Free Report) margins have been improving for the past several quarters. In the second quarter of fiscal 2026, ADI posted a gross margin of 73%, up from 69.4% in the year-ago quarter. ADI’s adjusted operating margin was 49% in the second quarter of fiscal 2026 compared with 41.2% in the previous year quarter.
The pattern has remained similar for the past six months, suggesting Analog Devices’ strong, profitable business model across segments. ADI has been riding on a combination of a favorable business mix, higher factory utilization, pricing strength and disciplined operational execution.
The company’s growth is accelerating, driven by ADI's highest-value markets, including Industrial, Aerospace & Defense, Automated Test Equipment (ATE), Electronic Test & Measurement (ETM), Data Center, and advanced Automotive applications. These businesses typically command premium pricing due to their performance requirements, long product lifecycles and mission-critical nature.
Industrial remains ADI's most profitable business and was the primary growth engine during the quarter. It accounted for 50% of revenues. Industrial grew 56% year over year and 20% sequentially. Management highlighted Aerospace & Defense, ATE, ETM, and the broad market business as key contributors.
Importantly, Industrial businesses beyond ATE and Aerospace grew more than 40% during the first half of fiscal 2026, indicating broad-based strength across automation, energy, healthcare and industrial automation markets. Communications was the fastest-growing end market, increasing 79% year over year. Within this segment, Data Center revenues surged more than 90%, driven by strong demand for ADI's optical and power solutions supporting AI infrastructure.
Management described both the Data Center and ATE businesses as being on steep growth trajectories with confidence extending into 2027. Overall, ADI's margin expansion is being fueled by rapid growth in its highest-margin, most differentiated businesses, creating a powerful combination of revenue acceleration and operating leverage.
How Competitors Fare Against Analog DevicesAnalog Devices competes with Texas Instruments (TXN - Free Report) in the industrial segment and with Broadcom (AVGO - Free Report) in the communications segment, which are also two of ADI’s strongest segments in terms of revenue growth and profit margin.
Texas Instruments competes with ADI in industrial signal chains, precision sensing and power management, especially in PLCs, factory automation and motor control. STMicroelectronics competes in industrial MCUs, motor drivers, sensors and automation systems. In the Communications segment, Texas Instruments competes with ADI in analog/mixed-signal, RF front-ends, power amp/driver ICs, ADCs/DACs in infrastructure and wireless systems.
Broadcom is strong in networking, data center, broadband, Wi-Fi, Ethernet PHYs and switches. In the communications segment, Broadcom mainly competes with its high-speed connectivity, optical / wireline networking equipment and cable or broadband IC portfolio. Despite strong competition from Texas Instruments and Broadcom, Analog Devices has enough scope to grow in the communications space as new 5G technology is being introduced, which gives scope for expansion to all the players.
ADI’s Price Performance, Valuation and EstimatesShares of ADI have gained 60.2% year to date compared with the Zacks Semiconductor - Analog and Mixed industry’s growth of 69.7%.
ADI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 13.43X, higher than the industry’s average of 10.88X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 59% and 14%, respectively. The consensus estimate for fiscal 2025 and 2026 has remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
ADI currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Analog Devices (ADI - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Analog Devices currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for ADI that show why this semiconductor maker shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ADI, shares are up 3.99% over the past week while the Zacks Semiconductor - Analog and Mixed industry is up 2.9% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.42% compares favorably with the industry's 1.22% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Analog Devices have risen 41.31%, and are up 90.26% in the last year. In comparison, the S&P 500 has only moved 13.8% and 26.67%, respectively.
Investors should also pay attention to ADI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ADI is currently averaging 4,676,264 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ADI.
Over the past two months, 11 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ADI's consensus estimate, increasing from $11.39 to $12.41 in the past 60 days. Looking at the next fiscal year, 9 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ADI is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Analog Devices on your short list.
Key Takeaways Analog Devices is benefiting from AI data center demand and record bookings across key markets.ADI's communications business grew strongly as data center revenues topped 75% of segment sales.Astera Labs is expanding AI connectivity offerings, but premium valuation and competition remain challenges. Analog Devices (ADI - Free Report) and Astera Labs (ALAB - Free Report) are two prominent players in the AI semiconductor space, offering solutions that are crucial for AI data centers and high performance computing (HPC). Both companies have been key beneficiaries of the artificial intelligence (AI) boom, which has driven strong demand for its analog and embedded chips used across data centers, industrial customers and automotive markets.
As the demand for analog and embedded chips supporting AI and HPC is likely to remain strong, ADI and ALAB are well-positioned to capitalize on this opportunity. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for ADI StockAnalog Devices’ data center and Automated Test Equipment are on steep growth trajectories. Adoption of higher-voltage architectures, mainly 48V and 54V, and vertical power is expanding its serviceable market, while DC power control and multiphase controllers enable efficient GPU and CPU power regulation.
Optical connectivity is another tailwind as AI networking shifts toward optical circuit switching. ADI’s precision control and monitoring solutions help improve bandwidth density and reduce cost per bit. Analog Devices’ industrial sectors have grown more than 40% in the first half of fiscal 2026 while still running below prior cycle highs, with lean channel inventories.
In fact, ADI’s communications accounted for 15% of second-quarter fiscal 2026 revenues and rose 79% year over year and 22% sequentially to $554.7 million, driven by AI infrastructure buildouts. Analog Devices’ data center now accounted for more than 75% of Communications revenues and was up more than 90% year over year, with similar growth across both the optical and power portfolios.
To address the growing data center requirements, ADI offers a portfolio that includes power management technologies, optical and high-speed connectivity solutions, and energy optimization products designed to improve the performance and efficiency of next-generation data centers. ADI experienced record bookings across its B2B markets.
Management reported that the demand signals remain constructive, supporting expectations for continued strong growth in the third quarter and beyond. Communications, including data center, is an above-corporate-average-margin business, which can lift profitability as it scales. The Zacks Consensus Estimates for ADI’s earnings growth show an increase of 59% in fiscal 2026. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
The Case for ALAB StockAstera Labs is benefiting from the accelerating demand for AI infrastructure, which is driving robust growth across its product portfolio and positioning the company for further upside. In the first quarter of fiscal 2026, ALAB reported revenues of $308 million, up 14% sequentially and 93% year over year.
The company benefits from strong growth in UALink, an open-standard scale-up connectivity protocol designed to address the increasing demands of AI infrastructure. In the first quarter of 2026, ALAB collaborated with UALink Consortium to publish the new UALink 2.0 specification, introducing advanced capabilities such as In-Network Compute, confidential computing and multi-path routing while preserving its foundational memory-semantic model.
The company’s leadership in high-speed connectivity, expanding product portfolio and deep customer partnerships position it to capture a growing share of the AI infrastructure market. ALAB recently announced a major expansion of its operations in Taiwan and its Cloud-Scale Interop Lab. This expansion will speed up the deployment of rack-scale AI infrastructure.
The move improves the company’s engineering, operations, quality and technical support. It also boosts collaboration with key partners, including Advanced Micro Devices, Arm, Intel, NVIDIA, and leading Taiwan ODMs such as GIGABYTE, Ingrasys, Inventec, Quanta Cloud Technology, and Wiwynn. Given these tailwinds, ALAB is experiencing tremendous growth in both top and bottom lines. The Zacks Consensus Estimate for ALAB’s 2026 revenue and earnings growth suggests an increase of 80% and 59%, respectively. Earnings estimates have remained unchanged for the past 30 days.
Despite its growing portfolio and partnerships, ALAB faces intense competition from Marvell Technology, Cisco and Credo in AI infrastructure. Marvell Technology’s new AI switch silicon, Cisco’s surging AI infrastructure business and raised outlook, and Credo’s DustPhotonics acquisition, strengthening its optical interconnect portfolio, could challenge ALAB’s growth prospects in the expanding AI connectivity market.
Image Source: Zacks Investment Research
Stock Price Performance and Valuation of ADI & ALABYear to date, ALAB shares have rallied 117.5% compared with the appreciation of 54% in ADI shares.
YTD Performance Chart
Image Source: Zacks Investment Research
ADI is trading at a forward sales multiple of 12.88X, above its median of 10.61X over the past year. ALAB’s forward sales multiple sits at 34.18X, significantly above its median of 24.13X over the past year.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: ADI vs. ALABWhile Astera Labs offers exceptional growth potential driven by AI infrastructure spending, its premium valuation and intensifying competition from larger networking and connectivity players make the stock relatively riskier at current levels. In contrast, Analog Devices combines strong AI-driven momentum with a diversified business model spanning industrial, automotive and communications markets, providing greater earnings stability and resilience across cycles. ADI carries a Zacks Rank #2 (Buy), while ALAB has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 18, 2026, Analog Devices Inc (ADI) shares rose 4.8% today, closing at $434.46. The stock has experienced a robust price performance, with a year-to-date
A month has gone by since the last earnings report for Analog Devices (ADI - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Analog Devices due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Analog Devices Q2 Earnings Beat Estimates, Revenues Rise Y/YAnalog Devices reported second-quarter fiscal 2026 non-GAAP earnings of $3.09 per share, which beat the Zacks Consensus Estimate by 6.9%. The company reported earnings of $1.85 per share in the year-ago period.
Analog Devices’ second-quarter fiscal 2026 revenues of $3.62 billion surpassed the Zacks Consensus Estimate of $3.51 billion. The top line increased 37% from the year-ago quarter’s revenues of $2.64 billion.
Analog Devices’ Q2 DetailsIndustrial: Revenues from this segment were $1.80 billion, representing 50% of total revenues and reflecting 56% year-over-year growth.
Automotive: Revenues reached $871.6 million (or 24% of total revenue), up 2% year over year.
Communications: Revenues came in at $554.7 million, accounting for 15% of total revenues and rising 79% year over year.
Consumer: The segment generated $397.8 million (or 11% of revenues), marking a 23% increase compared with the same quarter last year.
The adjusted gross margin expanded 360 basis points to 73%, while the adjusted operating margin was 49%, up 780 basis points year over year.
ADI’s Balance Sheet and Cash FlowsAs of May 2, 2026, cash and cash equivalents were approximately $2.44 billion, down from $2.91 billion as of Jan. 31, 2026. The company also held $1 billion in short-term investments during the second quarter.
Long-term debt was $7.235 billion compared with $7.24 billion at the end of the previous quarter.
Analog Devices generated $872 million in operating cash flow and $734 million in free cash flow during the second quarter of fiscal 2026.
In the fiscal second quarter, the company returned $1.31 billion to shareholders, comprising $536 million in dividends and $773 million in share repurchases.
ADI Initiates Q3 FY26 GuidanceFor the third quarter of fiscal 2026, management expects revenues to be $3.9 billion (+/- $100 million).
The company projects a reported operating margin of approximately 39% (+/-150 bps) and an adjusted operating margin of about 49% (+/-100 bps).
Reported earnings are anticipated to be $2.60 (+/-$0.15) per share, while adjusted earnings are expected to be $3.30 (+/-$0.15) per share.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 12.35% due to these changes.
VGM ScoresCurrently, Analog Devices has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Analog Devices has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerAnalog Devices is part of the Zacks Semiconductor - Analog and Mixed industry. Over the past month, Microchip Technology (MCHP - Free Report) , a stock from the same industry, has gained 9.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Microchip Tech reported revenues of $1.31 billion in the last reported quarter, representing a year-over-year change of +35.1%. EPS of $0.57 for the same period compares with $0.11 a year ago.
For the current quarter, Microchip Tech is expected to post earnings of $0.66 per share, indicating a change of +144.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Microchip Tech. Also, the stock has a VGM Score of D.
The commitment, up to USD8 million, underscores investor confidence in healthcare growth opportunities across Southeast Asia, the sector's resilience amid global uncertainty, and TVM Capital Healthcare's proven track record achieving superior financial returns and impact outcomes June 16, 2026 03:00 ET | Source: TVM Capital Healthcare
SINGAPORE, June 16, 2026 (GLOBE NEWSWIRE) -- TVM Capital Healthcare today announced that Australian Development Investments (ADI) has committed up to USD $8 million to the firm's Southeast Asia Fund through its Investing in Women window. The investment supports growth capital for healthcare companies that expand access to affordable, quality care while advancing women’s leadership, workforce participation, and patient outcomes in line with the 2X Criteria.
The commitment underscores strong investor confidence in TVM Capital Healthcare's Southeast Asia strategy, its long-standing track record in healthcare, and its ability to identify and scale companies that expand access to high-quality, affordable healthcare across emerging markets. It also highlights the firm’s impact in advancing female leadership, creating meaningful employment for men and women, and addressing critical gaps in underserved areas such as women’s healthcare.
Healthcare continues to demonstrate resilience as an investment sector amid global economic and geopolitical uncertainty. Demand for healthcare services remains driven by fundamental demographic and societal needs, creating opportunities for sustainable growth while addressing critical healthcare challenges across Southeast Asia.
With nearly four decades of global healthcare investing and operating experience and more than 15 years focused on emerging markets, TVM Capital Healthcare has built a differentiated model that combines investment expertise with hands-on operational support. The firm partners with healthcare companies that expand access to care, improve patient outcomes, strengthen healthcare infrastructure outside of the traditional hospital-setting, and support national healthcare priorities.
"We are pleased to welcome ADI as partners in our Southeast Asia Fund," said Hoda Abou-Jamra, Co-Founder and Managing Partner at TVM Capital Healthcare. "Their commitment reflects a shared conviction that healthcare is currently one of the most compelling sectors for long-term investment in Southeast Asia to achieve both superior financial performance and impact outcomes. Together, we look forward to supporting healthcare companies that expand access to quality care, strengthen healthcare systems, and create sustainable value for patients, communities, and investors.”
"At a time when many investors are seeking resilient sectors with strong long-term fundamentals, TVM Capital Healthcare's experience, local and hands-on approach, and established track record in emerging markets position the firm as a strong partner for achieving both commercial and development objectives," said Ralitsa Rizvanolli, Head of Investments from Sarona Asset Management – ADI’s investment manager.
ADI is an initiative of the Australian Government, managed by the Department of Foreign Affairs and Trade (DFAT), and is implemented by its investment manager, Sarona Asset Management, together with technical assistance partners SAGANA and OnePointFive. ADI seeks to play a catalytic role in mobilising private capital into investments that expand access to essential services, drive climate impact, and advance women’s economic participation across Southeast Asia.
TVM Capital Healthcare looks forward to working closely with ADI and its implementation partners to further strengthen the Fund's capabilities and support portfolio companies as they scale operations, enhance their gender-lens approach as well as their climate and sustainability practices, and expand access to healthcare across the region. The technical assistance resources available through the ADI, alongside investment capital, are expected to further support value creation at both the fund and portfolio company levels.
TVM Capital Healthcare’s Southeast Asia fund focuses on healthcare companies operating in high-growth sectors including specialty care for long-term and chronic conditions, disease prevention, women’s healthcare, as well as pharmaceutical and medical device manufacturing. The fund seeks to capitalize on growing healthcare demand across the region, driven by rising incomes, aging populations, expanding healthcare coverage, and increasing expectations for world-class care.
ADI’s commitment follows the successful first closing of TVM Capital Healthcare's Southeast Asia Fund in September 2025 and builds on the firm's long-standing experience investing and operating healthcare businesses across emerging markets. It also follows the oversubscribed closing of TVM Capital Healthcare's US$254 million Afiyah Fund in the Middle East in 2024.
About TVM Capital Healthcare
TVM Capital Healthcare is a global private equity investor and operator focused exclusively on healthcare growth capital across Southeast Asia and the Middle East. With nearly 40 years of healthcare investing and operating experience globally and more than 15 years in emerging markets, the firm partners with companies that expand access to quality healthcare, improve patient outcomes, and strengthen healthcare systems while delivering attractive returns for investors. For more about TVM Capital Healthcare, visit www.tvmcapitalhealthcare.com.
For inquiries, please contact:
Holly Radel
Head of Sustainability and Strategic Communications
TVM Capital Healthcare
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Analog Devices (ADI - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Analog Devices is a member of our Computer and Technology group, which includes 592 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ADI's full-year earnings has moved 10.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ADI has gained about 54.1% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 15.6% on average. As we can see, Analog Devices is performing better than its sector in the calendar year.
Another stock in the Computer and Technology sector, Allegro MicroSystems, Inc. (ALGM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 91.1%.
Over the past three months, Allegro MicroSystems, Inc.'s consensus EPS estimate for the current year has increased 10.9%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Analog Devices belongs to the Semiconductor - Analog and Mixed industry, a group that includes 10 individual companies and currently sits at #6 in the Zacks Industry Rank. On average, this group has gained an average of 65.1% so far this year, meaning that ADI is slightly underperforming its industry in terms of year-to-date returns.
Allegro MicroSystems, Inc., however, belongs to the Electronics - Semiconductors industry. Currently, this 47-stock industry is ranked #58. The industry has moved +52.7% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Analog Devices and Allegro MicroSystems, Inc. as they could maintain their solid performance.
On June 15, 2026, we take a closer look at the DCF analysis for Analog Devices Inc ADI , a company that has shown remarkable price performance over the past year. The stock has appreciated significantly, with a year-to-date increase of 55.0% and a one-year increase of 82.4%. However, the DCF valuation reveals a different perspective on its current price.
DCF Earnings-based intrinsic value: $227.83 vs current price: $417.79 (margin of safety: -83.4%) DCF FCF-based intrinsic value: $162.65 vs current price: $417.79 (significantly overvalued) GF Score™: 94/100, indicating high reliability of the DCF inputs What Is ADI Worth? DCF Earnings-Based Model The DCF earnings-based model for Analog Devices Inc ADI utilizes a two-stage valuation approach, which considers the company's expected growth over the next 10 years followed by a terminal growth phase. The model assumes a current EPS of $9.86 and a 10-year growth rate of 15.5%. The discount rate is set at 11%, derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $9.86 10-Year Growth Rate 15.5% 10-Year Treasury Rate 4.45% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The growth phase (Years 1-10) anticipates an EPS growth of 15.5% per year, which is then discounted at the rate of 11%. Following this growth phase, the terminal phase (Years 11-20) assumes a slower growth rate of 4%. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 15.5%, discounted at 11% $123.49 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $104.34 Intrinsic Value Growth + Terminal $227.83 With the current price standing at $417.79, the intrinsic value derived from the DCF earnings-based model indicates that the stock is modestly overvalued, with a margin of safety of -83.4%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than free cash flow. For a detailed calculation, visit the ADI DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Analog Devices Inc is calculated at $162.65. When comparing this with the earnings-based intrinsic value of $227.83, the two models present a consensus of being significantly overvalued, with a margin of safety of -156.9%. This discrepancy highlights the importance of considering multiple valuation methods when assessing a company's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Analog Devices Inc is calculated at $299.80, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure that takes into account historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest the stock is overvalued, the GF Value™ also indicates a level of overvaluation, aligning with the findings from both the earnings-based and FCF-based DCF analyses. For more insights, visit the GF Value™ page.
What Does ADI's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtested data from 2006-2021. The current GF Score™ for Analog Devices Inc is 94/100, indicating strong performance across these metrics.
Metric Rating GF Score™ 94/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 9/10 With a predictability rank of 1/5 stars, it is important to note that higher predictability ratings contribute to the reliability of the DCF model for this stock. For further details, visit the ADI stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Analog Devices Inc with a rank of 1/5, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings-based model, the DCF FCF model, and the GF Value™, it is evident that Analog Devices Inc is currently overvalued. The significant discrepancies between intrinsic values and the current market price suggest caution for potential investors.
For the full DCF analysis, visit the ADI DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ADI's intrinsic value based on DCF?
earnings-based $227.83, FCF-based $162.65
Is ADI overvalued or undervalued?
Based on the DCF and GF Value™ consensus, ADI is overvalued.
How reliable is the DCF model for ADI?
With a predictability rank of 1/5, the DCF model is less reliable for ADI.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
ADI reported second-quarter revenue of $3.62 billion, up 37% from a year earlier and above the analyst consensus estimate of $3.51 billion. Adjusted earnings came in at $3.09 per share, topping Wall Street estimates of $2.90 per share.
For the fiscal third quarter, ADI forecast revenue of $3.80 billion to $4.00 billion, above analyst estimates of $3.62 billion. The company also projected adjusted earnings of $3.15 to $3.45 per share, ahead of the Street consensus estimate of $3.00 per share.
Analog Devices shares fell 3% to trade at $386.28 on Thursday.
These analysts made changes to their price targets on Analog Devices following earnings announcement.
Considering buying ADI stock? Here’s what analysts think:
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Key Takeaways Analog Devices posted 30% revenue growth, driven by AI infrastructure and data center demand.TXN's data center revenues surged 90% year over year in first-quarter 2026.Texas Instruments' manufacturing scale and power solutions strengthen its AI data center position. Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) are two prominent players in the AI semiconductor space, offering solutions that are crucial for AI data centers and high performance computing. Both companies have been key beneficiaries of the artificial intelligence (AI) boom, which has driven strong demand for its analog and embedded chips used across data centers, industrial customers and automotive markets.
As the demand for analog and embedded chips supporting AI and high-performance computing is likely to remain strong, ADI and TXN are well-positioned to capitalize on this opportunity. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for ADI StockAnalog Devices started fiscal 2026 with strong momentum, posting revenues of $3.16 billion, up 30% year over year, and delivering growth across all end markets. Industrial and communications led the quarter as AI infrastructure, data center buildouts and cyclical improvement continued to support demand.
ADI’s industrial revenues rose 38% year over year, communications climbed 63%, consumer increased 27% and automotive advanced 8%. The strength in automated test equipment and data center applications is driving ADI’s top line. while electro-optical interfaces, precision power management, protection and monitoring continued to benefit from the shift from 800G toward 1.6T networks.
ADI’s data center business has been growing in double digits year over year for the past four quarters. The company expects AI-driven advancements, including the development of more capable and content-rich humanoid robots, to create significant long-term growth opportunities and further strengthen ADI’s position in the robotics market.
Adoption of higher-voltage architectures, mainly 48V and 54V, and vertical power is expanding its serviceable market, while DC power control and multiphase controllers enable efficient GPU and CPU power regulation. Optical connectivity is another tailwind as AI networking shifts toward optical circuit switching. ADI’s precision control and monitoring solutions help improve bandwidth density and reduce cost per bit.
For the second quarter of fiscal 2026, ADI expects revenues of $3.5 billion (+/- $100 million) and adjusted EPS of $2.88. The consensus estimate for earnings is pegged at $2.96 per share, indicating year-over year growth of 44.4%. Estimates for second-quarter fiscal 2026 earnings have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
The Case for TXN StockTexas Instruments is seeing rising momentum in the data center market, which has become an important growth driver for the company. During its first-quarter earnings call, management stated that revenue growth was led by industrial and data center demand. This is a positive sign because data centers are expanding rapidly as cloud computing, AI and enterprise workloads continue to grow.
Texas Instruments does not compete directly in high-end AI graphics processors. Instead, it supplies analog and embedded chips that are essential for data center infrastructure. These chips help manage power delivery, battery backup systems, cooling equipment, motor controls, signal conversion and server connectivity. As modern data centers become larger and more power-intensive, the need for efficient power management solutions increases.
In 2025, Texas Instruments’ data center business reached an annual run rate of about $1.2 billion, growing more than 50% year over year. In the first quarter of 2026, revenues from the data center end market surged 90% year over year and 25% sequentially. As cloud and AI workloads continue to rise, Texas Instruments’ strong portfolio and manufacturing scale position it well to benefit from sustained demand for efficient, high-performance power solutions in data center infrastructure.
TXN calls for second-quarter 2026 revenues in the range of $5.00-$5.40 billion. The Zacks Consensus Estimate for revenues is pegged at $5.22 billion, indicating year-over year growth of 17.4%. The company expects earnings per share between $1.77 and $2.05. The Zacks Consensus Estimate for earnings is pegged at $1.92, indicating year-over year growth of 36%. Estimates for second-quarter 2026 earnings have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Stock Price Performance and Valuation of ADI & TXNYear to date, TXN shares have gained 75.7% compared with the surge of 46.8% in ADI shares.
YTD Price Performance
Image Source: Zacks Investment Research
ADI is trading at a forward sales multiple of 13.31X, above its median of 10.48X over the past year. TXN’s forward sales multiple sits at 12.90X, significantly above its median of 9.17X over the past year.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: ADI vs. TXNWhile both Analog Devices and Texas Instruments are benefiting from the AI-driven expansion in data centers, industrial automation and high-performance computing, TXN currently appears to be the better investment choice. Texas Instruments is demonstrating stronger momentum in AI infrastructure-related demand, particularly in data centers, where revenues surged 90% year over year in the first quarter of 2026. TXN also benefits from its unmatched manufacturing scale and internal production capabilities, which provide better supply chain control, cost efficiencies and long-term margin advantages. Given these factors, we suggest TXN to be a better buy than ADI right now.
While TXN sports a Zacks Rank #1 (Strong Buy), ADI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
, /PRNewswire/ -- Analog Devices, Inc. (NASDAQ: ADI) today announced that the Company's Executive Vice President & Chief Financial Officer, Richard Puccio, will discuss business topics and trends at the Bank of America Global Technology Conference, located in San Francisco, California on Tuesday, June 2, at 10:00 a.m. PST.
The webcast for the conference may be accessed live via the Investor Relations section of Analog Devices' website at Investor Relations. An archived replay will also be available following the webcast for at least 30 days.
About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today's innovators stay Ahead of What's Possible. Learn more at www.analog.com and on LinkedIn and X.
Media Contact
Jeff Ambrosi
781-461-3282
Senior Director, Investor Relations, Analog Devices, Inc.
On May 26, 2026, we present a DCF analysis for Analog Devices Inc (ADI), a company that has shown remarkable price performance over the past year, with a 90.2%
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Analog Devices (ADI - Free Report) .
Analog Devices currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 23 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 71.9% and 12.5% of all recommendations.
Brokerage Recommendation Trends for ADI
Check price target & stock forecast for Analog Devices here>>>
While the ABR calls for buying Analog Devices, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ADI?In terms of earnings estimate revisions for Analog Devices, the Zacks Consensus Estimate for the current year has increased 6.3% over the past month to $12.06.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Analog Devices. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Analog Devices may serve as a useful guide for investors.
Key Takeaways ADI posted record revenues and earnings, fueled by AI-driven growth in data center demand.ADI's communications revenues jumped 79% as data centers made up more than 75% of the segment.ADI is expanding AI power capabilities through its Empower Semiconductor acquisition. Analog Devices (ADI - Free Report) is benefiting from AI-related demand with revenues reaching a record $3.62 billion, up 37% year over year, and earnings rose to a record $3.09. The growth was supported by record demand and disciplined execution with year-over-year growth across all end markets, led by Industrial and Communications.
ADI’s Communications revenues were up 79% year over year, where the data center business accounted for more than 75% of that segment. Data center revenues grew more than 90% year over year, driven by both optical and power portfolios, which suggests ADI is benefiting from the full stack of AI infrastructure needs rather than a single product category.
Management said the business is on a steep growth trajectory and that confidence in continued growth into fiscal 2027 is increasing. As AI systems are pushing higher power density, faster data movement, and greater system complexity, ADI’s analog, mixed-signal, power and optical offerings are getting a boost.
ADI’s hybrid manufacturing model, supply-chain flexibility and long R&D cycle are helping it capture this demand surge. Given these factors, ADI is able to improve profitability. ADI’s gross margin expanded to 73% on an adjusted basis, expanding 360 basis points (bps) year over year, while adjusted operating margin reached 49%, expanding 780 bps.
ADI is also widening its AI power platform through the acquisition of Empower Semiconductor. Empower Semiconductor’s integrated voltage regulator and silicon capacitor technology as a way to reduce power footprint and improve response for volatile AI workloads, reinforcing ADI’s push from board-level power delivery toward chip-level power management.
How Competitors Fare Against ADIBroadcom (AVGO - Free Report) is a leader in the domain of custom silicon solutions for data centers. Broadcom’s advanced 3.5D XDSiP packaging platform is critical to ensure the performance and efficiency of custom AI XPUs. Broadcom’s Semiconductor segment, which accounts for its custom silicon solutions, has experienced massive growth in the past several quarters.
Advanced Micro Devices (AMD - Free Report) is another established player in the custom silicon solutions and AI accelerator market. AMD offers semi-custom SoCs and Instinct Accelerators to power data centers. Moreover, Advanced Micro Devices’ reconfigurable Alveo Adaptable Accelerator Cards are critical for compute-intensive applications in data centers.
Seeing the growth of AI-data centers and allied networking required to run the AI workload, companies in this space, including Analog Devices, Advanced Micro Devices and Broadcom, have sufficient growth opportunities.
ADI’s Price Performance, Valuation and EstimatesShares of ADI have gained 46.4% year to date compared with the Semiconductor - Analog and Mixed industry’s growth of 62.8%.
ADI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 12.68X, higher than the industry’s average of 10.69X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 29.8% and 11.8%, respectively. The consensus estimate for fiscal 2026 and 2027 has been revised upward in the past seven days.
Image Source: Zacks Investment Research
ADI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors might want to bet on Analog Devices (ADI - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this semiconductor maker, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Analog Devices, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $3.19 per share for the current quarter, which represents a year-over-year change of +55.6%.
Over the last 30 days, the Zacks Consensus Estimate for Analog Devices has increased 10.55% because five estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $12.31 per share, representing a year-over-year change of +58.0%.
The revisions trend for the current year also appears quite promising for Analog Devices, with 10 estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 8.49%.
Favorable Zacks RankThanks to promising estimate revisions, Analog Devices currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on Analog Devices because of its solid estimate revisions, as evident from the stock's 9.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Key Takeaways ADI's industrial revenues jumped 56% year over year, driven by automation and defense demand.ADI said data center and ATE businesses hit record highs amid rising AI infrastructure demand.ADI sees long-term growth from robotics, electrification and intelligent connected systems. Analog Devices’ (ADI - Free Report) industrial segment continued its strong momentum in the second quarter of fiscal 2026, generating robust growth driven by automation, aerospace and defense, electronic test and measurement, healthcare and energy-related demand. Industrial revenues represented 50% of total company revenues in the quarter and increased 56% year over year and 20% sequentially, making it ADI’s largest and most profitable business segment.
ADI’s Industrial business is benefiting from its customers increasing the semiconductor content across next-generation systems. ADI reported that industrial businesses collectively grew more than 40% in the first half of fiscal 2026, supported by lean channel inventories and improving demand conditions across key end markets. One of the major growth drivers remains automatic test equipment (ATE), where AI infrastructure investments and rising semiconductor complexity continue to boost demand.
ADI is benefiting from increasing investments in digital factories, advanced manufacturing and robotics. ADI’s sensing, signal chain, power management and connectivity solutions are being used across semiconductor fabs, biopharma facilities, data centers and industrial manufacturing environments. The company also highlighted expanding opportunities in robotics and humanoid systems, which are increasing its long-term opportunity pipeline. The aerospace and defense business reached a new revenue high in the second quarter.
Energy infrastructure modernization is also driving demand for ADI’s technologies. Increasing electrification, renewable energy integration and AI-driven power consumption are creating pressure on legacy electrical grids, resulting in rising demand for ADI’s monitoring, metering, connectivity and power management solutions. Looking ahead, ADI remains optimistic about sustained growth opportunities across industrial automation, AI infrastructure, electrification, healthcare and defense markets as semiconductor content continues to rise across increasingly intelligent and connected systems.
How Competitors Fare Against Analog DevicesAnalog Devices competes with Texas Instruments (TXN - Free Report) and STMicroelectronics (STM - Free Report) in the Industrial segment. Texas Instruments competes with ADI in industrial signal chains, precision sensing and power management, especially in PLCs, factory automation and motor control. STMicroelectronics competes in industrial MCUs, motor drivers, sensors and automation systems.
In the robotics space, STMicroelectronics provides sensors, motor control ICs and power management for cobots, AMRs and humanoid robots. In automation, Texas Instruments provides low-power precision analog and sensing for medical imaging, patient monitoring and diagnostics.
Both STMicroelectronics and Texas Instruments compete with ADI in the aerospace and defense business through their radiation-hardened analog and mixed-signal ICs, secure communications and avionics systems.
ADI’s Price Performance, Valuation and EstimatesShares of ADI have gained 53.7% year to date compared with the Semiconductor - Analog and Mixed industry’s growth of 69.5%.
ADI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 13.30X, higher than the industry’s average of 10.98X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 59.3% and 14.5%, respectively. The consensus estimate for fiscal 2026 and 2027 has been revised upward in the past seven days.
Image Source: Zacks Investment Research
ADI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Analog Devices (ADI - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Analog Devices currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for ADI that show why this semiconductor maker shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For ADI, shares are up 4.23% over the past week while the Zacks Semiconductor - Analog and Mixed industry is up 0.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.3% compares favorably with the industry's 9.27% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Analog Devices have increased 37.11% over the past quarter, and have gained 100.31% in the last year. On the other hand, the S&P 500 has only moved 11.07% and 27.78%, respectively.
Investors should also take note of ADI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ADI is averaging 4,740,620 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with ADI.
Over the past two months, 11 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ADI's consensus estimate, increasing from $11.37 to $12.41 in the past 60 days. Looking at the next fiscal year, 9 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ADI is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Analog Devices on your short list.
United States Representative Josh Gottheimer, a Democrat from New Jersey, just disclosed a wave of fresh stock purchases, and among them, four are direct bets on the Artificial Intelligence (AI) chip industry.
The congressmen purchased Advanced Micro Devices, Inc. (NASDAQ: AMD), Micron Technology, Inc. (NASDAQ: MU), Analog Devices, Inc. (NASDAQ: ADI), and Fabrinet (NYSE: FN), according to a filing with the Clerk of the U.S. House of Representatives on June 3, 2026, and analyzed by Finbold on June 4. The purchases were executed between May 1 and May 21, 2026, in accordance with the Stock Act.
Each of Gottheimer’s four AI chip purchases fell within the same bracket of between $1,001 and $15,000. Gottheimer’s AI chip buys are notable given his seat on the House Financial Services subcommittee overseeing artificial intelligence.
All four companies are core suppliers to the AI boom. Notably, Micro Devices builds the processors that train AI models, and Micron makes the high-bandwidth memory those chips rely on. Meanwhile, Analog Devices supplies the power and signal chips that keep data centers running, while Fabrinet manufactures the optical components that link AI servers.
Market performance of these 4 AI chip stocks Since Gottheimer purchased Micron Technology earlier last month, MU stock has surged over 59%, trading at $1,023.44 at press time. As such, the company had a market capitalization of around $1.2 trillion on Thursday.
MU stock 30-day chart. Source: Finbold Over the past 30 days, Advanced Micro Devices stock has surged by more than 48%, trading at approximately $525.86 at the time of publication. As a result, the company’s market cap climbed to hover above $884.6 billion.
AMD stock 30-day chart. Source: Finbold During the same period, ADI stock has gained 6.13%, trading at $429 at press time. Consequently, Analog Devices had a market valuation of about $213.2 billion.
ADI stock 30-day chart. Source: Finbold Meanwhile, FN stock has added 9.5% over the past 30 days, trading at $723.04 at the time of reporting. The company’s market cap hovered around $26 billion.
FN stock 30-day chart. Source: Finbold Gottheimer could be betting on continued global demand for AI, with these four stocks well positioned to gain traction in the near term.
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Key Takeaways Global semiconductor sales reached $110.5 billion in April, up 11% sequentially and 93.9% year over year.WSTS forecasts the semiconductor market will grow 90% this year to reach $1.51 trillion.AI, automotive, IoT and 6G demand continue to fuel semiconductor sales momentum. Investors have lately been rotating out of tech stocks and taking refuge in defensive assets, as a surge in oil prices owing to the continued tensions in the Middle East has raised fears of inflation rising further. However, the enthusiasm surrounding artificial intelligence has continued to help AI-focused companies.
High demand for AI chips has been boosting semiconductor stocks, which have primarily been responsible for the broader market rally over the past three years. Given this scenario, it would be ideal to invest in semiconductor stocks, such as Analog Devices (ADI - Free Report) , NXP Semiconductors (NXPI - Free Report) , Microchip Technology (MCHP - Free Report) , Texas Instruments (TXN - Free Report) and ASML Holding N.V. (ASML - Free Report) , which have great potential for growth this year.
Semiconductor Revenues Surging SteadilyGlobal semiconductor sales totaled $110.5 billion in April, jumping 11% sequentially from March’s total of $99.5 billion, the Semiconductor Industry Association (SIA) reported. Year over year, semiconductor sales soared 93.9% $56.9 billion in April 2025.
“Global semiconductor sales increased on a month-to-month basis for the 14th consecutive month in April, and the global market continues to notch robust year-to-year growth driven by sales into the Asia-Pacific region, the Americas, and China,” John Neuffer, SIA president and CEO, said.
The robust jump in April follows a stellar first quarter when semiconductor sales totaled $298.5 billion, increasing 25% sequentially.
Semiconductors have become a key part of nearly every modern and developing technology, from IoT and 6G to artificial intelligence. Growing demand from the automotive sector has also helped boost chip sales. Meanwhile, the fast-growing AI market — which is still in its early stages — is prompting major technology companies to invest billions of dollars in development and infrastructure.
With big tech firms continuing to spend aggressively on AI infrastructure, investor confidence in semiconductor companies has remained strong.
The SIA also backed the World Semiconductor Trade Statistics’ (“WSTS”) Spring 2026 global semiconductor sales forecast. The WSTS projects the global semiconductor market to grow 90% this year, reaching $1.51 trillion.
5 Semiconductor Stocks With UpsideAnalog DevicesAnalog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.
Analog Devices’ expected earnings growth rate for the current year is 59.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. ADI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NXP SemiconductorsNXP Semiconductors provides high-performance, mixed-signal and standard product solutions that leverage its RF, analog, power management, interface, security and digital processing expertise. NXPI seems well-positioned to capitalize on the level 2-5 automotive market. Additionally, NXP Semiconductors is the leader in general-purpose microcontrollers and application processors in industrial and IoT markets.
NXP Semiconductors’ expected earnings growth rate for the current year is 25.1%. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the past 60 days. NXPI carries a Zacks Rank #2 at present.
Microchip TechnologyMicrochip Technology has been consistently benefiting from its strength in the analog and microcontroller businesses. MCHP’s dominance in 8, 16, and 32-bit PIC microcontrollers remains a major driver of top-line and bookings growth. Microchip Technology has acquired notable companies like Tektronix, Microsemi and Atmel to add strength to its product offerings.
Microchip Technology’s expected earnings growth rate for the current year is 84.2%. The Zacks Consensus Estimate for current-year earnings has improved 18% over the past 60 days. MCHP currently has a Zacks Rank #1.
Texas InstrumentsTexas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Management strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.
Texas Instruments’ expected earnings growth rate for the current year is 40.6%. The Zacks Consensus Estimate for current-year earnings has improved 20.6% over the past 60 days. Currently, TXN carries a Zacks Rank #2.
Analog Devices ADI shares have climbed 77.4% in a year, outperforming the Zacks Computer and Technology sector's appreciation of 43.5%. The rise in stock price is due to the restoration of investors' confidence in a broad-based recovery in ADI's industrial segment and AI-related data center demand, driving higher utilization and a favorable mix.
Key Takeaways ADI communications revenues grew 79% year over year, led by data center strength.ADI expects communications to be its fastest sequential grower, supported by AI demand.ADI sees record bookings and data center growth boosting a higher-margin business segment. Analog Devices’ (ADI - Free Report) communications segment is growing strongly throughout 2025 and 2026. In fiscal second-quarter 2026, the segment posted revenues of $554.7 million, with revenues increasing 22% sequentially and 79% year over year to represent 15% of total company revenues.
The segment’s growth was led by the data center business, which now accounts for more than 75% of communications revenues and grew over 90% year over year, supported by strength in both optical and power portfolios. Wireless also remained healthy, rising more than 35% year over year.
Analog Devices' communications business serves the growing demand for high-speed, reliable connectivity across wireless infrastructure and data center applications. The segment is positioned to address increasing requirements for advanced communications technologies driven by expanding network traffic, cloud computing, artificial intelligence (AI) and machine learning workloads.
The data center market represents another key area of focus, benefiting from the rapid adoption of AI, machine learning and hyperscale computing architectures. These trends are driving demand for advanced power delivery systems, thermal management technologies and high-speed connectivity solutions capable of supporting increasingly complex computing workloads and cloud infrastructure. To address these requirements, the company offers a portfolio that includes power management technologies, optical and high-speed connectivity solutions, and energy optimization products designed to improve the performance and efficiency of next-generation data centers.
ADI experienced record bookings across its B2B markets. The management reported that the demand signals remain constructive, supporting expectations for continued strong growth in the third quarter and beyond. Communications, including data center, is an above-corporate-average-margin business, which can lift profitability as it scales. For the third quarter, management expects Communications to be its fastest sequential grower, up low- to mid-teens at the midpoint, reinforcing the momentum in AI connectivity.
How Competitors Fare Against Analog DevicesAnalog Devices competes with Texas Instruments (TXN - Free Report) and Broadcom (AVGO - Free Report) in the Communications segment. Texas Instruments competes with ADI in analog/mixed-signal, RF front-ends, power amp/driver ICs, ADCs/DACs in infrastructure and wireless systems.
Broadcom is strong in networking, data center, broadband, Wi-Fi, Ethernet PHYs and switches. In the communications segment, Broadcom mainly competes with its high-speed connectivity, optical / wireline networking equipment and cable or broadband IC portfolio.
Despite strong competition from Texas Instruments and Broadcom, Analog Devices has enough scope to grow in the communications space as new 5G technology is being introduced.
ADI’s Price Performance, Valuation and EstimatesShares of ADI have gained 68.6% in the past 12 months compared with the Semiconductor - Analog and Mixed industry’s growth of 77.7%.
ADI 12-Month Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 12.18X, higher than the industry’s average of 10.30X.
ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 59% and 14%, respectively. The consensus estimate for fiscal 2025 and 2026 has remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
ADI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Analog Devices (ADI - Free Report) .
Analog Devices currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 23 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 71.9% and 12.5% of all recommendations.
Brokerage Recommendation Trends for ADI
Check price target & stock forecast for Analog Devices here>>>
The ABR suggests buying Analog Devices, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ADI?Looking at the earnings estimate revisions for Analog Devices, the Zacks Consensus Estimate for the current year has increased 9.4% over the past month to $12.41.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Analog Devices. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Analog Devices may serve as a useful guide for investors.
