Track market-moving stories before they get noisy

Analog Devices (ADI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this semiconductor maker have returned +0.8%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Semiconductor - Analog and Mixed industry, which Analog Devices falls in, has lost 5.5%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Analog Devices is expected to post earnings of $3.89 per share for the current quarter, representing a year-over-year change of +72.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.

The consensus earnings estimate of $13 for the current fiscal year indicates a year-over-year change of +66.9%. This estimate has changed +0.3% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $16.57 indicates a change of +27.5% from what Analog Devices is expected to report a year ago. Over the past month, the estimate has changed +1.6%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Analog Devices is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Analog Devices, the consensus sales estimate for the current quarter of $4.32 billion indicates a year-over-year change of +40.6%. For the current and next fiscal years, $15.13 billion and $18.62 billion estimates indicate +37.3% and +23.1% changes, respectively.

Last Reported Results and Surprise HistoryAnalog Devices reported revenues of $4.02 billion in the last reported quarter, representing a year-over-year change of +39.6%. EPS of $3.45 for the same period compares with $2.05 a year ago.

Compared to the Zacks Consensus Estimate of $3.92 billion, the reported revenues represent a surprise of +2.48%. The EPS surprise was +3.6%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Analog Devices is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Analog Devices. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Diversify Advisory Services LLC grew its stake in Analog Devices, Inc. (NASDAQ:ADI – Free Report) by 32.6% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 8,660 shares of the semiconductor company’s stock after buying an additional 2,131 shares during the period. Diversify Advisory Services LLC’s holdings in Analog Devices were worth $3,498,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Analog Devices during the second quarter valued at $18,610,868,000. Bank of America Corp DE increased its position in shares of Analog Devices by 5.2% in the 1st quarter. Bank of America Corp DE now owns 10,216,699 shares of the semiconductor company’s stock valued at $3,250,341,000 after acquiring an additional 501,604 shares during the period. Van ECK Associates Corp raised its stake in Analog Devices by 24.7% in the 2nd quarter. Van ECK Associates Corp now owns 8,422,883 shares of the semiconductor company’s stock worth $3,345,316,000 after acquiring an additional 1,670,957 shares during the last quarter. Amundi raised its stake in Analog Devices by 5.3% in the 1st quarter. Amundi now owns 5,044,271 shares of the semiconductor company’s stock worth $1,604,771,000 after acquiring an additional 254,632 shares during the last quarter. Finally, Legal & General Group Plc acquired a new stake in Analog Devices during the 2nd quarter worth about $1,525,167,000. 86.81% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Analog Devices In other Analog Devices news, Director Ray Stata sold 1,416 shares of Analog Devices stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $420.04, for a total transaction of $594,776.64. Following the completion of the transaction, the director owned 108,847 shares in the company, valued at approximately $45,720,093.88. This trade represents a 1.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vivek Jain sold 3,305 shares of the business’s stock in a transaction dated Thursday, October 8th. The shares were sold at an average price of $406.58, for a total value of $1,343,746.90. Following the completion of the transaction, the insider directly owned 40,428 shares of the company’s stock, valued at approximately $16,437,216.24. This trade represents a 7.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 52,436 shares of company stock worth $20,014,954 in the last three months. Company insiders own 0.36% of the company’s stock.

Wall Street Analysts Forecast Growth Several analysts have weighed in on the company. TD Cowen boosted their price target on Analog Devices from $460.00 to $475.00 and gave the company a “buy” rating in a research note on Monday. Cantor Fitzgerald reissued an “overweight” rating and issued a $510.00 price objective (up from $400.00) on shares of Analog Devices in a report on Tuesday, September 8th. Wells Fargo & Company reduced their price objective on Analog Devices from $515.00 to $500.00 and set an “overweight” rating for the company in a research note on Thursday, August 20th. JPMorgan Chase & Co. raised their price objective on Analog Devices from $450.00 to $500.00 and gave the stock an “overweight” rating in a research note on Thursday, August 20th. Finally, Seaport Research Partners raised Analog Devices from a “neutral” rating to a “buy” rating and set a $425.00 target price for the company in a report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $460.55. Read Our Latest Research Report on ADI

More Analog Devices News Here are the key news stories impacting Analog Devices this week:

Positive Sentiment: TD Cowen raised its price target for Analog Devices (ADI) to $475 from $460 and maintained a “buy” rating, indicating continued confidence in the semiconductor company’s earnings outlook. Analog Devices price target raised Neutral Sentiment: Analog Devices announced that it will release fourth-quarter fiscal 2026 results before the market opens on November 24. The scheduled report could become the next major catalyst as investors assess demand, margins and forward guidance. Analog Devices fourth-quarter earnings announcement Neutral Sentiment: Reports indicated that 39 exchange-traded funds added ADI holdings on October 20, suggesting ongoing passive or institutional demand, although the reports did not provide enough detail to assess the purchases’ significance. ETF purchases of Analog Devices Negative Sentiment: CFO Richard Puccio sold 1,500 shares for approximately $584,000. The transaction was made under a pre-arranged Rule 10b5-1 plan and reduced his holdings by 3.02%, limiting its significance but still creating a modest negative headline. Analog Devices CFO stock sale Negative Sentiment: ADI advised shareholders to reject an unsolicited $525-per-share mini-tender offer from Tutanota LLC, warning that the offer is limited in size and subject to conditions. The unusual proposal may add uncertainty even though it is priced above recent trading levels. Analog Devices mini-tender offer Analog Devices Stock Down 5.0% NASDAQ:ADI opened at $385.76 on Friday. The firm has a market capitalization of $186.93 billion, a P/E ratio of 36.05, a PEG ratio of 1.25 and a beta of 1.22. Analog Devices, Inc. has a 1-year low of $223.47 and a 1-year high of $445.91. The company’s fifty day moving average price is $383.72 and its 200-day moving average price is $389.27. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.25 and a quick ratio of 0.91.

Analog Devices (NASDAQ:ADI – Get Free Report) last issued its earnings results on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.11. The firm had revenue of $4.02 billion during the quarter, compared to analysts’ expectations of $3.92 billion. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The firm’s revenue was up 39.2% compared to the same quarter last year. During the same quarter last year, the company posted $2.05 earnings per share. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. As a group, equities research analysts anticipate that Analog Devices, Inc. will post 13.00 EPS for the current year.

Analog Devices Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, September 1st. Analog Devices’s dividend payout ratio (DPR) is currently 52.19%.

About Analog Devices (Free Report)

Analog Devices, Inc (NASDAQ: ADI) is a global semiconductor company that designs and manufactures analog, mixed-signal and digital signal-processing technologies. Its products convert, condition and process real-world signals such as temperature, pressure, sound, motion, light and electrical power, helping electronic systems interpret and respond to physical environments.

The company offers a broad portfolio of integrated circuits, power-management products, amplifiers, data converters, sensors, radio-frequency and microwave components, connectivity solutions and embedded processors.

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Canoe Financial LP reduced its holdings in shares of Analog Devices, Inc. (NASDAQ:ADI – Free Report) by 19.3% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 285,099 shares of the semiconductor company’s stock after selling 68,089 shares during the quarter. Canoe Financial LP owned 0.06% of Analog Devices worth $115,351,000 at the end of the most recent quarter.

Other large investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in Analog Devices in the second quarter valued at approximately $18,610,868,000. Bank of America Corp DE raised its stake in shares of Analog Devices by 5.2% during the first quarter. Bank of America Corp DE now owns 10,216,699 shares of the semiconductor company’s stock valued at $3,250,341,000 after purchasing an additional 501,604 shares during the period. Van ECK Associates Corp lifted its position in shares of Analog Devices by 24.7% during the second quarter. Van ECK Associates Corp now owns 8,422,883 shares of the semiconductor company’s stock worth $3,345,316,000 after purchasing an additional 1,670,957 shares in the last quarter. Amundi boosted its stake in shares of Analog Devices by 5.3% in the first quarter. Amundi now owns 5,044,271 shares of the semiconductor company’s stock valued at $1,604,771,000 after purchasing an additional 254,632 shares during the period. Finally, Legal & General Group Plc purchased a new position in shares of Analog Devices in the second quarter valued at $1,525,167,000. Institutional investors and hedge funds own 86.81% of the company’s stock.

NASDAQ:ADI opened at $405.96 on Thursday. The company has a market capitalization of $196.72 billion, a price-to-earnings ratio of 48.16, a price-to-earnings-growth ratio of 1.22 and a beta of 1.22. Analog Devices, Inc. has a one year low of $223.47 and a one year high of $445.91. The stock has a 50-day simple moving average of $383.63 and a 200 day simple moving average of $388.80. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.91 and a current ratio of 1.25.

Analog Devices (NASDAQ:ADI – Get Free Report) last announced its quarterly earnings data on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.11. The firm had revenue of $4.02 billion for the quarter, compared to analysts’ expectations of $3.92 billion. Analog Devices had a return on equity of 16.39% and a net margin of 29.79%. Analog Devices’s revenue for the quarter was up 39.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.05 earnings per share. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. Sell-side analysts predict that Analog Devices, Inc. will post 13.00 EPS for the current fiscal year. Analog Devices Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were paid a dividend of $1.10 per share. The ex-dividend date was Tuesday, September 1st. This represents a $4.40 annualized dividend and a yield of 1.1%. Analog Devices’s payout ratio is presently 52.19%.

Analog Devices News Roundup Here are the key news stories impacting Analog Devices this week:

Positive Sentiment: TD Cowen raised its price target for Analog Devices (ADI) from $460 to $475 and reiterated a “buy” rating, signaling continued confidence in the company’s earnings outlook and potential upside. Benzinga analyst price target report Positive Sentiment: Analog Devices disclosed that Tutanota LLC is seeking to purchase up to 100,000 ADI shares for $525 each in an unsolicited mini-tender offer. Although ADI recommended that shareholders reject the offer, the premium price drew investor attention and may reinforce perceptions that the stock is valuable. Analog Devices mini-tender offer announcement Neutral Sentiment: Exchange-traded funds were reported to be buying Analog Devices shares on October 19, suggesting continued institutional demand, though the report did not identify the size or strategic significance of the purchases. ETF purchases of Analog Devices Negative Sentiment: Chief Financial Officer Richard Puccio sold 1,500 shares valued at approximately $584,000. The transaction reduced his direct holdings by 3.02%, but it was executed under a pre-arranged Rule 10b5-1 plan, making it a relatively limited signal about management’s view of ADI’s prospects. Richard Puccio insider transaction Insider Activity In other news, CFO Richard C. Puccio, Jr. sold 1,500 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $389.46, for a total value of $584,190.00. Following the transaction, the chief financial officer directly owned 48,177 shares in the company, valued at approximately $18,763,014.42. This trade represents a 3.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vivek Jain sold 3,305 shares of the business’s stock in a transaction dated Thursday, October 8th. The shares were sold at an average price of $406.58, for a total transaction of $1,343,746.90. Following the sale, the insider directly owned 40,428 shares of the company’s stock, valued at approximately $16,437,216.24. This represents a 7.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 52,436 shares of company stock valued at $20,014,954 over the last quarter. 0.36% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth Several equities research analysts recently issued reports on ADI shares. Piper Sandler set a $460.00 price target on shares of Analog Devices in a research note on Tuesday, September 8th. BMO Capital Markets assumed coverage on Analog Devices in a research note on Thursday, August 20th. They set an “outperform” rating and a $430.00 target price for the company. Needham & Company LLC lifted their target price on Analog Devices from $440.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, August 20th. Stifel Nicolaus lifted their target price on Analog Devices from $450.00 to $498.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Finally, Arete Research boosted their price target on Analog Devices from $487.00 to $490.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Analog Devices has an average rating of “Moderate Buy” and an average target price of $460.55.

Check Out Our Latest Stock Analysis on Analog Devices

Analog Devices Profile (Free Report)

Analog Devices, Inc (NASDAQ: ADI) is a global semiconductor company that designs and manufactures analog, mixed-signal and digital signal-processing technologies. Its products convert, condition and process real-world signals such as temperature, pressure, sound, motion, light and electrical power, helping electronic systems interpret and respond to physical environments.

The company offers a broad portfolio of integrated circuits, power-management products, amplifiers, data converters, sensors, radio-frequency and microwave components, connectivity solutions and embedded processors.

Further Reading Five stocks we like better than Analog Devices GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Intercepting Growth: Karman Secures $218M Lockheed Martin Deal Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chip Stocks Have Pulled Back—Here’s How 3 Semiconductor ETFs Stack Up for Investors Want to see what other hedge funds are holding ADI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Analog Devices, Inc. (NASDAQ:ADI – Free Report).

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Analog Devices (ADI - Free Report) ended the recent trading session at $405.96, demonstrating a +2.24% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.05%.

The semiconductor maker's stock has climbed by 1.71% in the past month, exceeding the Computer and Technology sector's loss of 2.67% and the S&P 500's gain of 0.97%.

The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. It is anticipated that the company will report an EPS of $3.89, marking a 72.12% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.32 billion, indicating a 40.58% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13 per share and a revenue of $15.13 billion, representing changes of +66.88% and +37.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.31% rise in the Zacks Consensus EPS estimate. Right now, Analog Devices possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 30.55. This represents a discount compared to its industry average Forward P/E of 31.25.

It's also important to note that ADI currently trades at a PEG ratio of 1.22. 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 0.73 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 20, this industry ranks in the top 9% of all industries, numbering over 250.

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.

To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.

On October 19, 2026, we conducted a 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 47.1% and a one-year gain of 65.7%. However, our valuation models indicate a different story regarding its current price.

DCF Earnings-based intrinsic value of $109.39 vs current price of $395.44 (margin of safety: -261.5%) DCF FCF-based intrinsic value of $164.58 vs current price (second opinion) GF Score™ of 95/100 suggests high reliability of the DCF inputs What Is ADI Worth? DCF Earnings-Based Model To assess the intrinsic value of Analog Devices Inc, we utilized a two-stage DCF model. The first stage considers a growth phase over the next ten years, where we expect the earnings per share (EPS) to grow at a rate of 7.9%. The second stage reflects a terminal growth phase with a reduced growth rate of 4% for the subsequent ten years. The discount rate used for both stages is 12%, which combines the risk-free rate and the equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $8.49 10-Year Growth Rate 7.9% 10-Year Treasury Rate 5.08% Discount Rate (ceil(Treasury) + 6%) 12% Terminal Growth Rate 4% The calculation summary for the two-stage DCF model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 7.9%, discounted at 12% $69.59 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 12% $39.80 Intrinsic Value Growth + Terminal $109.39 With the current price at $395.44, the intrinsic value of $109.39 indicates that the stock is significantly overvalued, with a margin of safety of -261.5%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further analysis, you can access 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 $164.58. When comparing this with the earnings-based intrinsic value, both models indicate that the stock is significantly overvalued, with a margin of safety of -140.3%. This alignment between the two models reinforces the conclusion drawn from the earnings-based DCF.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Analog Devices Inc is calculated at $347.82, providing a third perspective on the stock's valuation. GF Value™ is GuruFocus's proprietary measure, derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—agree that the stock is overvalued, suggesting caution for potential investors. For more details, visit the GF Value™ page.

What Does ADI's GF Score™ Tell Us? The GF Score™ evaluates various aspects of a company's financial health and growth potential. Analog Devices Inc has a GF Score™ of 95/100, indicating strong performance across several metrics. However, its predictability rank is low at 1/5 stars, suggesting that the DCF model may be less reliable for this stock.

Metric Rating GF Score™ 95/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 6/10 Momentum 10/10 For more information on ADI's performance, visit the ADI stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as ADI, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions.

What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—indicate that Analog Devices Inc is significantly overvalued at its current price. The consensus among these models suggests caution for potential investors. Additionally, the guru ownership signal shows that 20 gurus currently hold the stock, with 6 adding and 16 trimming their positions in recent quarters, while insiders have sold $106.9M worth of shares over the past year. This insider activity may further indicate a lack of confidence in the stock's current valuation. For a comprehensive analysis, check out the ADI DCF Calculator.

Frequently Asked Questions What is ADI's intrinsic value based on DCF?

According to our analysis, the earnings-based intrinsic value is $109.39, while the FCF-based intrinsic value is $164.58.

Is ADI overvalued or undervalued?

Both the DCF and GF Value™ models indicate that ADI is significantly overvalued at its current price.

How reliable is the DCF model for ADI?

The DCF model's reliability is limited, as indicated by its predictability rank of 1/5 stars.

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].

Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Birch Hill Investment Advisors LLC boosted its stake in shares of Analog Devices, Inc. (NASDAQ:ADI – Free Report) by 18.5% during the 3rd quarter, according to its most recent filing with the SEC. The firm owned 133,793 shares of the semiconductor company’s stock after purchasing an additional 20,889 shares during the period. Analog Devices makes up approximately 2.3% of Birch Hill Investment Advisors LLC’s portfolio, making the stock its 17th biggest holding. Birch Hill Investment Advisors LLC’s holdings in Analog Devices were worth $53,077,000 as of its most recent filing with the SEC.

Several other large investors have also recently made changes to their positions in the company. Riverbend Wealth Management LLC lifted its holdings in Analog Devices by 2.2% during the first quarter. Riverbend Wealth Management LLC now owns 1,245 shares of the semiconductor company’s stock valued at $396,000 after purchasing an additional 27 shares in the last quarter. Bridgewater Advisors Inc. lifted its position in shares of Analog Devices by 1.5% in the first quarter. Bridgewater Advisors Inc. now owns 1,805 shares of the semiconductor company’s stock valued at $574,000 after acquiring an additional 27 shares in the last quarter. Silicon Valley Capital Partners boosted its stake in shares of Analog Devices by 4.2% in the first quarter. Silicon Valley Capital Partners now owns 672 shares of the semiconductor company’s stock worth $214,000 after acquiring an additional 27 shares during the last quarter. Cornerstone Financial Management LLC raised its stake in Analog Devices by 54.9% in the 2nd quarter. Cornerstone Financial Management LLC now owns 79 shares of the semiconductor company’s stock valued at $31,000 after purchasing an additional 28 shares during the last quarter. Finally, Strategy Asset Managers LLC boosted its position in Analog Devices by 2.1% during the third quarter. Strategy Asset Managers LLC now owns 1,439 shares of the semiconductor company’s stock worth $571,000 after acquiring an additional 29 shares during the last quarter. 86.81% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Analog Devices Here are the key news stories impacting Analog Devices this week:

Positive Sentiment: KeyCorp sharply increased its long-term earnings forecast. The firm raised its FY2027 EPS estimate to $17.88 from $15.32, implying substantially stronger expected profitability. It also lifted estimates for every quarter from Q4 2026 through Q4 2027, citing a more favorable outlook for Analog Devices’ earnings trajectory. KeyBanc keeps USD 525 target for Analog Devices stock Positive Sentiment: Near-term estimates were also raised. KeyCorp increased its FY2026 EPS forecast to $13.06 from $12.62 and raised its Q4 2026 estimate to $4.07 from $3.67. Forecasts for Q1 through Q4 2027 were raised to $4.17, $4.35, $4.63 and $4.74, respectively. These revisions put KeyCorp’s estimates above the current full-year consensus of $12.99 and reinforce its $525 target. Positive Sentiment: Analog Devices is partnering with InoBat on battery energy-storage systems for AI data centers. The collaboration could provide exposure to growing data-center power and energy-storage demand, although the announcement did not disclose financial terms or expected revenue. InoBat, Analog Devices to team up on BESS for AI data centres Neutral Sentiment: The stock has recently traded below KeyCorp’s $525 price objective, but the shares decreased even as analysts raised earnings expectations. That divergence suggests investors may be focused on valuation, broader semiconductor-market conditions or profit-taking rather than the upgraded forecasts alone. Analog Devices Trading Down 2.1% NASDAQ:ADI opened at $395.44 on Friday. The stock has a 50-day simple moving average of $382.76 and a 200-day simple moving average of $386.52. Analog Devices, Inc. has a 1 year low of $223.47 and a 1 year high of $445.91. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.91 and a current ratio of 1.25. The stock has a market cap of $191.62 billion, a P/E ratio of 46.91, a P/E/G ratio of 1.22 and a beta of 1.22. Analog Devices (NASDAQ:ADI – Get Free Report) last released its quarterly earnings data on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.11. The company had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $3.92 billion. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. Analog Devices’s revenue for the quarter was up 39.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.05 earnings per share. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. As a group, analysts anticipate that Analog Devices, Inc. will post 12.99 earnings per share for the current fiscal year.

Analog Devices Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $1.10 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. Analog Devices’s dividend payout ratio (DPR) is 52.19%.

Insider Transactions at Analog Devices In related news, insider Vivek Jain sold 3,305 shares of the firm’s stock in a transaction dated Thursday, October 8th. The shares were sold at an average price of $406.58, for a total value of $1,343,746.90. Following the completion of the sale, the insider owned 40,428 shares in the company, valued at $16,437,216.24. This trade represents a 7.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Vincent Roche sold 10,000 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $396.94, for a total transaction of $3,969,400.00. Following the completion of the sale, the chief executive officer directly owned 115,460 shares in the company, valued at approximately $45,830,692.40. The trade was a 7.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 50,936 shares of company stock valued at $19,430,764 in the last ninety days. 0.36% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth ADI has been the topic of a number of recent research reports. Evercore lowered their price objective on Analog Devices from $474.00 to $462.00 and set an “outperform” rating on the stock in a research note on Thursday, August 20th. Piper Sandler set a $460.00 price target on shares of Analog Devices in a research report on Tuesday, September 8th. Weiss Ratings upgraded Analog Devices from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, August 21st. TD Cowen reiterated a “buy” rating and set a $460.00 price target (up from $450.00) on shares of Analog Devices in a research report on Tuesday, September 8th. Finally, BMO Capital Markets initiated coverage on Analog Devices in a research note on Thursday, August 20th. They set an “outperform” rating and a $430.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Analog Devices currently has a consensus rating of “Moderate Buy” and an average price target of $460.09.

Get Our Latest Report on ADI

Analog Devices Company Profile (Free Report)

Analog Devices, Inc (NASDAQ: ADI) is a global semiconductor company that designs and manufactures analog, mixed-signal and digital signal-processing technologies. Its products convert, condition and process real-world signals such as temperature, pressure, sound, motion, light and electrical power, helping electronic systems interpret and respond to physical environments.

The company offers a broad portfolio of integrated circuits, power-management products, amplifiers, data converters, sensors, radio-frequency and microwave components, connectivity solutions and embedded processors.

Featured Stories Five stocks we like better than Analog Devices Rocket Lab’s Neutron Delay Leaves Wall Street Bullish But Raises the Stakes for 2027 ManpowerGroup Stock Sinks on Q3 Results, But Fundamentals Stay Solid Does the AI Selloff Put Alphabet’s Breakout in Doubt? Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery Want to see what other hedge funds are holding ADI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Analog Devices, Inc. (NASDAQ:ADI – Free Report).

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In the latest close session, Analog Devices (ADI - Free Report) was up +2.08% at $414.70. The stock exceeded the S&P 500, which registered a loss of 0.02% for the day. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.15%.

Prior to today's trading, shares of the semiconductor maker had gained 12.53% outpaced the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.

Market participants will be closely following the financial results of Analog Devices in its upcoming release. It is anticipated that the company will report an EPS of $3.84, marking a 69.91% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.31 billion, up 39.96% from the year-ago period.

ADI's full-year Zacks Consensus Estimates are calling for earnings of $12.96 per share and revenue of $15.11 billion. These results would represent year-over-year changes of +66.37% and +37.12%, respectively.

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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Analog Devices is holding a Zacks Rank of #1 (Strong Buy) right now.

From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 31.36. Its industry sports an average Forward P/E of 36.41, so one might conclude that Analog Devices is trading at a discount comparatively.

We can also see that ADI currently has a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ADI's industry had an average PEG ratio of 0.69 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 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

What happened Analog Devices Inc (NASDAQ: ADI) Chief Operations/Tech Officer Vivek Jain sold 5,305 shares on 2026-10-07 and 2026-10-08, according to the Form 4. The shares sold for $406.58 to $409.79 each, or about $2.16 million in total. The filing splits the trade into 2,000 shares on 2026-10-07 at $409.788 and 3,305.062 shares on 2026-10-08 at $406.585.

The filing also shows 43,733.48 shares after the first sale and 40,428.418 shares after the second. Together, the two trades reduced the reported holding by 5,305.062 shares. That is about 11.6% of the pre-trade holding, based on the filing's figures.

Key numbers Metric Latest Change Source Shares sold 5,305 shares SEC Form 4 Sale value about $2.16 million SEC Form 4 Sale price range $406.58 to $409.79 per share SEC Form 4 Shares held after sale 40,428.418 shares SEC Form 4 Sale as share of pre-trade holding 11.6% Calculated from SEC Form 4 Read more: Analog Devices (ADI) stock analysis and investment case Why it matters OptimistFi's case is that Analog Devices turns engineering-differentiated analog and mixed-signal chips into durable cash flow, then converts that advantage into shareholder returns. Jain's sale weakens that case a little because it trims one officer's stake. The 5,305-share sale is meaningful, but it is still only a partial reduction. Jain still reported 40,428.418 shares after the second trade, so the filing shows a reduced but continuing position.

The 11.6% figure comes from 5,305 shares sold against 45,733 shares before the first trade. That ratio is the cleanest way to size the move. The two sale dates were back to back, which makes the change easier to compare with later filings. So the Form 4 reads as a trim in ownership, not a reset in strategy.

That matters because the report is about stake size, not operating performance. For investors, the sale is mainly a new insider data point, and it trims the insider alignment story a bit.

Related: Analog Devices' Alif Deal Includes Up to $200 Million Extra

What's next Analog Devices Inc's next quarterly report is the next dated update investors can use to check whether Jain's stake moves again. A steadier holding would make this look like a one-time trim, while another reduction would deepen the negative read. The next filing will be easiest to compare if the share count stays near this level.

More from OptimistFi ADI stock: the Analog Devices thesis, its status and the next test to watch Levi Strauss & Co. (NYSE: LEVI) Raises Profit as Wholesale Outruns DTC Park Aerospace Corp. (NYSE: PKE) Expands Profit as Sales Rise Helen of Troy Limited (NASDAQ: HELE) Lifts Profit as Cash Flow Rebounds Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC Form 4 — Vivek Jain reported sales of Analog Devices Inc common stock on 2026-10-07 and 2026-10-08. Calculated from SEC Form 4 — 5,305 shares were about 11.6% of the pre-trade holding. Read the full OptimistFi thesis on Analog Devices Inc: https://optimistfi.com/stocks/ADI

See what would break the Analog Devices Inc thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full Analog Devices Inc investment case, its status and the next test to watch live on the Analog Devices Inc thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.

Analog Devices, Inc. (NASDAQ:ADI – Get Free Report) insider Vivek Jain sold 3,305 shares of the firm’s stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $406.58, for a total value of $1,343,746.90. Following the sale, the insider directly owned 40,428 shares of the company’s stock, valued at $16,437,216.24. This trade represents a 7.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Vivek Jain also recently made the following trade(s):

On Wednesday, October 7th, Vivek Jain sold 2,000 shares of Analog Devices stock. The shares were sold at an average price of $409.79, for a total value of $819,580.00. On Friday, October 2nd, Vivek Jain sold 2,000 shares of Analog Devices stock. The shares were sold at an average price of $416.98, for a total value of $833,960.00. Analog Devices Trading Up 0.1% NASDAQ:ADI opened at $406.19 on Friday. The stock’s 50 day moving average price is $380.02 and its 200 day moving average price is $383.39. Analog Devices, Inc. has a 52 week low of $223.47 and a 52 week high of $445.91. The company has a market capitalization of $196.83 billion, a P/E ratio of 48.18, a P/E/G ratio of 1.25 and a beta of 1.22. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.91 and a current ratio of 1.25.

Analog Devices (NASDAQ:ADI – Get Free Report) last issued its quarterly earnings data on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share for the quarter, beating the consensus estimate of $3.34 by $0.11. The firm had revenue of $4.02 billion for the quarter, compared to analyst estimates of $3.92 billion. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The company’s revenue for the quarter was up 39.2% on a year-over-year basis. During the same quarter last year, the firm earned $2.05 earnings per share. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. On average, research analysts forecast that Analog Devices, Inc. will post 12.96 EPS for the current fiscal year. Analog Devices Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were paid a dividend of $1.10 per share. The ex-dividend date was Tuesday, September 1st. This represents a $4.40 annualized dividend and a dividend yield of 1.1%. Analog Devices’s dividend payout ratio is 52.19%.

Key Analog Devices News Here are the key news stories impacting Analog Devices this week:

Positive Sentiment: Analyst outlook remains constructive. TD Cowen maintained a Buy rating and a $460 price target, above ADI’s recent trading level. Wall Street’s broader consensus remains “Moderate Buy,” with an average target near $460. TD Cowen keeps $460 target for Analog Devices Positive Sentiment: ADI is expanding its communications technology footprint. India-based Lekha Wireless plans to integrate Analog Devices radio technology into 4G and 5G products. The agreement is unlikely to materially change near-term earnings, but it reinforces ADI’s exposure to communications infrastructure and 5G demand. Lekha Wireless to integrate Analog Devices technology Neutral Sentiment: Reported short interest was zero. The October 9 report lists no shares sold short and a 0.0-day short-interest ratio. This could remove a source of bearish pressure, although the unusual figure may reflect a reporting or data issue rather than a meaningful change in investor positioning. Neutral Sentiment: Strong fundamentals are balanced by a demanding valuation. ADI’s latest quarter exceeded earnings and revenue expectations, with revenue increasing 39.2% year over year. The stock trades at roughly 48 times earnings, leaving it vulnerable to profit-taking if growth or AI-related semiconductor demand disappoints. Negative Sentiment: Several insiders have sold shares. Director Ray Stata sold 1,416 shares for approximately $594,777, CFO Richard Puccio sold 1,500 shares for about $631,620, and Vivek Jain sold a combined 5,305 shares worth roughly $2.16 million. The transactions were made under pre-arranged Rule 10b5-1 plans and do not necessarily indicate weakening business prospects, but the cluster of sales may weigh on sentiment. Analog Devices insider buying and selling Institutional Inflows and Outflows Several institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Analog Devices during the second quarter worth $18,610,868,000. Bank of America Corp DE acquired a new stake in shares of Analog Devices in the 2nd quarter valued at $3,573,081,000. Legal & General Group Plc bought a new position in shares of Analog Devices in the 2nd quarter valued at $1,525,167,000. Bank of New York Mellon Corp bought a new position in shares of Analog Devices in the 2nd quarter valued at $1,326,066,000. Finally, Primecap Management Co. CA acquired a new position in shares of Analog Devices during the 2nd quarter worth $1,242,479,000. 86.81% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes ADI has been the topic of a number of recent research reports. Piper Sandler set a $460.00 price target on shares of Analog Devices in a report on Tuesday, September 8th. Seaport Research Partners raised shares of Analog Devices from a “neutral” rating to a “buy” rating and set a $425.00 price objective for the company in a research note on Thursday, August 20th. Arete Research upped their price objective on shares of Analog Devices from $487.00 to $490.00 and gave the stock a “buy” rating in a report on Thursday, August 20th. Needham & Company LLC increased their target price on shares of Analog Devices from $440.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, August 20th. Finally, TD Cowen reissued a “buy” rating and set a $460.00 target price (up from $450.00) on shares of Analog Devices in a research report on Tuesday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Analog Devices presently has an average rating of “Moderate Buy” and an average price target of $460.09.

Get Our Latest Stock Analysis on Analog Devices

Analog Devices Company Profile (Get Free Report)

Analog Devices, Inc (NASDAQ: ADI) is a global semiconductor company that develops technologies for converting, conditioning and processing real-world signals. Its products connect the physical and digital worlds by helping electronic systems sense, measure, interpret and control information such as temperature, pressure, motion, sound and electrical current.

The company’s product portfolio includes analog and mixed-signal integrated circuits, power management solutions, radio-frequency and microwave devices, data converters, amplifiers, sensors, microcontrollers, embedded processors and connectivity products.

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In the latest close session, Analog Devices (ADI - Free Report) was down 2.49% at $410.08. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Shares of the semiconductor maker have appreciated by 15.79% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.54%, and the S&P 500's gain of 1.4%.

The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.84, reflecting a 69.91% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 39.96% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.96 per share and a revenue of $15.11 billion, indicating changes of +66.37% and +37.12%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Analog Devices is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 32.46. This valuation marks a discount compared to its industry average Forward P/E of 42.83.

We can also see that ADI currently has a PEG ratio of 1.3. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 0.75.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways TSM, ADI, NVDA and MTSI are positioned for growth as semiconductor sales surge.Global chip sales topped $1 trillion through August, with SIA projecting $1.6 trillion by 2026.AI infrastructure, automotive demand and emerging technologies are driving semiconductor growth. Semiconductor stocks have been the market’s darling over the past few years. Enthusiasm surrounding artificial intelligence (AI), especially generative AI, has been providing a major boost to chip stocks, making them one of the most lucrative buys.

This year has been exceptionally impressive for the semiconductor industry, with sales surging at a rapid pace. As the massive investment in AI infrastructure continues, the future looks brighter for the semiconductor industry.

Given the optimism, it would be ideal to invest in semiconductor stocks, such as Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , Analog Devices (ADI - Free Report) , NVIDIA Corporation (NVDA - Free Report) and MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , which have great potential for growth this year.

Semiconductor Sales Hit $1 TrillionGlobal semiconductor sales totaled $159.7 billion in August, increasing 8% sequentially from July’s total of $147.9 billion, the Semiconductor Industry Association (“SIA”) reported earlier this week. Year over year, semiconductor sales soared 144.3% from August 2025 total of $65.4 billion.

More importantly, global semiconductor sales surpassed $1 trillion through August for the first time in history. SIA projects sales to hit more than $1.6 trillion by the end of 2026.

Michael Robbins, SIA president and CEO, said, “The global semiconductor market grew for the 18th consecutive month in August, with sales into the Americas, the Asia Pacific, and China driving strong and sustained year-to-year growth.”

Semiconductor sales have now grown in all the first eight months of the year. Earlier this year, investors grew concerned about whether the sky-high AI stocks and the rapid growth could be sustained, which put pressure on chip stocks.

However, those concerns were short-lived as robust investments by big tech companies have reinstated faith in the potential of AI. Major semiconductor companies tied to the AI boom delivered impressive quarterly results and offered upbeat forecasts, easing concerns and helping push chip stocks higher once again.

Semiconductor stocks have been a key contributor to the broader market’s gains in recent years. The strong performance in August came after an exceptional first half of 2026 for the sector. Global semiconductor sales reached $403.3 billion in the second quarter of 2026 and $298.5 billion in the first quarter, representing sequential increases of 33.1% and 25%, respectively.

Chips have become critical to a wide range of existing and emerging technologies, supporting advances in areas including the Internet of Things, 6G connectivity and AI.

Growing demand from the automotive sector has also provided a boost to semiconductor sales. Meanwhile, the AI industry remains in the early stages of its expansion, encouraging leading technology companies to commit billions of dollars to AI research, development and infrastructure.

4 Semiconductor Stocks With UpsideTaiwan Semiconductor Manufacturing Company LimitedTaiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. TSM manufactures ICs for its customers based on their proprietary IC 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 55.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. TSM presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Analog 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 66.4%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. ADI currently carries a Zacks Rank #1.

NVIDIA CorporationNVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.

NVIDIA has an expected earnings growth rate of 93.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days. NVDA currently has a Zacks Rank #1.

MACOM Technology Solutions HoldingsMACOM Technology Solutions Holdings is a provider of power analog semiconductor solutions to varied markets. MTSI develops and produces analog radio frequency, microwave and millimeter wave semiconductor devices and components for applications in optical, wireless and satellite networks. MACOM Technology Solutions Holdings primarily serves three markets, namely, data center, industrial & defense and telecom.

MACOM Technology’s expected earnings growth rate for the current year is 58.8%. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the past 60 days. MTSI presently has a Zacks Rank #1.

Analog Devices (ADI - Free Report) closed at $405.03 in the latest trading session, marking a +2.1% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.2%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.04%.

The stock of semiconductor maker has risen by 11.53% in the past month, leading the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.

Market participants will be closely following the financial results of Analog Devices in its upcoming release. On that day, Analog Devices is projected to report earnings of $3.84 per share, which would represent year-over-year growth of 69.91%. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 39.96% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.96 per share and revenue of $15.11 billion, indicating changes of +66.37% and +37.12%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments 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.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 30.62. This signifies a discount in comparison to the average Forward P/E of 49.69 for its industry.

It's also important to note that ADI currently trades at a PEG ratio of 1.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ADI's industry had an average PEG ratio of 0.73 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 41, which puts it in the top 17% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

SummaryAnalog Devices' data center revenue, now 80% of Communications, is forecast to reach 26.7% of total revenue by 2029, with a 3-year forward average segment growth of 42.9%.Industrial growth remains strong, supported by Instrumentation & Measurement (notably ATE) and Aerospace & Defense, with a 3-year forward average of 13% from 2027 to 2029.Automotive and Consumer segments face headwinds, but ADI's 5-year forward average revenue growth is revised up to 15% and net margin to 30.7%. Sundry Photography/iStock Editorial via Getty Images

By Anthony Goh, Senior Investment Research Analyst @ Khaveen Investments

In our previous analysis of Analog Devices (ADI), we believed the company had the strongest growth outlook among the top DAO

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADI either through stock ownership, options, or other derivatives. 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.

Khaveen Investments is registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the U.S. SEC does not imply a certain level of skill or training. No information in this publication is intended as investment, tax, accounting, or legal advice, or as an offer/solicitation to sell or buy. Material provided in this publication is for educational purposes only and was prepared from sources and data believed to be reliable, but we do not guarantee its accuracy or completeness.

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Key Takeaways ADI posted 40% revenue growth, driven by broad-based gains across all end markets. ADI's data-center revenues surged as optical and power sales each grew more than 100%. MCHP expects 40.6% year-over-year sales growth at the midpoint for fiscal second-quarter 2027. Analog Devices (ADI - Free Report) and Microchip Technology (MCHP - Free Report) are two of the largest semiconductor players catering to industrial, automotive, communications, consumer and data center end markets, making their businesses quite diversified. With the recent boom in the semiconductor industry, the question remains: which stock has more upside potential? Let us break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.

The Case for ADI StockAnalog Devices delivered a strong fiscal third-quarter 2026 result, with revenues rising 40% year over year to $4.02 billion, supported by growth across all end markets. ADI’s adjusted operating margin expanded to 50%, while adjusted earnings per share (EPS) jumped 68% to $3.45. Analog Devices expects fourth-quarter revenues of $4.3 billion and adjusted EPS of $3.86 at the midpoint. Broad-based demand, improving profitability and stronger guidance indicate that ADI’s recovery could extend across multiple quarters.

ADI’s industrial business contributed 49% of revenue, which grew 53% year over year and 10% sequentially to $1.97 billion. The growth in this segment was primarily led by automated test equipment, electronic test and measurement, aerospace and defense, and automation. ADI sees longer-term opportunities from factory automation, robotics and physical AI, where increasing sensing, motion-control, power and connectivity requirements can expand semiconductor content.

Analog Devices’ communications revenues surged 84% year over year and 18% sequentially to $654.5 million, with data centers accounting for roughly 80% of the segment. ADI’s optical and power revenue each grew more than 100% year over year, highlighting strong AI infrastructure demand. Management expects continued data-center strength, while the Empower Semiconductor acquisition expands ADI’s power-management capabilities. ADI expects its optical circuit switching revenues to roughly double in fiscal 2026.

ADI’s automotive revenues increased 16% year over year and 14% sequentially to $998.2 million, supported by ADAS, infotainment and electric powertrains. Its hybrid manufacturing model is also improving supply flexibility as demand strengthens. Meanwhile, ADI generated $4.9 billion of free cash flow over the trailing 12 months and returned $5.17 billion to shareholders. Strong cash generation, buybacks and dividends provide additional support as industrial, automotive and AI infrastructure demand recovers.

The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 revenues indicates year-over-year growth of 37% and 22%, respectively. The consensus mark for EPS suggests a robust year-over-year improvement of 66% for fiscal 2026 and 25% for fiscal 2027. The earnings estimates for ADI’s fiscal 2026 have been revised upward in the past 60 days.

Image Source: Zacks Investment Research

The Case for MCHP StockMicrochip is expanding its data-center portfolio as AI infrastructure drives demand for high-speed connectivity and embedded control. PCIe Gen6 design wins reached 14 by September 2026, while the company expects its data-center portfolio to generate about $1 billion in calendar 2026 revenues. Future Gen6 switch and retimer contributions could provide an additional growth catalyst from 2027 onward.

Aerospace and defense remains another important growth avenue, representing 16.7% of June-quarter revenues. Microchip’s business has expanded from roughly $600 million in 2022 to approximately $1 billion, supported by defense inventory rebuilding and multiyear demand. Its radiation-tolerant, radiation-hardened and FPGA products address space and defense applications requiring high reliability, long lifecycles and stringent performance requirements.

Improving bookings, factory utilization and expense discipline are supporting operating leverage as Microchip’s recovery progresses. Management reported its strongest bookings quarter in roughly four years and expects fiscal second-quarter 2027 gross margins of 66-67% and operating margins of 38.5-39.5%. The pending Hailo acquisition could accelerate Microchip’s edge-AI roadmap while adding complementary technology and engineering capabilities.

However, external manufacturing dependence, China exposure and elevated leverage remain important risks. Microchip sources approximately 65% of wafers externally, creating potential bottlenecks if AI-driven demand tightens foundry and assembly capacity. China represents roughly 17-18% of revenue and faces increasing local competition. Meanwhile, net debt was 2.85 times adjusted EBITDA, limiting flexibility for buybacks and larger acquisitions.

For the second quarter of fiscal 2027, Microchip expects net sales between $1.589 billion and $1.618 billion, which suggests sequential growth of 7-9%, with the midpoint implying approximately 40.6% year-over-year growth. The company expects non-GAAP earnings of 91-95 cents per share. The Zacks Consensus Estimate for MCHP’s second-quarter fiscal 2027 earnings indicates year-over-year growth of 162.8%. Estimates have remained unchanged for the past 30 days.

Image Source: Zacks Investment Research

ADI vs. MCHP: Price Performance and ValuationYear to date, MCHP shares have climbed 17.3% compared with the 41.1% rise in ADI shares.

YTD Performance Chart
Image Source: Zacks Investment Research

On the valuation front, MCHP trades at a P/S multiple of 5.85X, lower than its median of 6.95X. ADI trades at a forward 12-month P/S multiple of 10.22X, lower than its median of 11.22X.

Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

Conclusion: Buy ADI Stock NowADI has the stronger overall growth profile, supported by a broader recovery across industrial, automotive and communications markets, accelerating AI infrastructure demand and stronger upward revisions to earnings estimates. While MCHP offers significant recovery potential, its higher external manufacturing dependence, China exposure and leverage create additional execution risks. Given the factors, ADI seems to be a better investment choice at present. ADI carries a Zacks Rank #2 (Buy), while MCHP has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Analog Devices (NASDAQ:ADI) Chief Financial Officer Rich Puccio said the company expects demand strength across its portfolio to support double-digit growth into fiscal 2027, citing broad-based recovery in industrial markets alongside continued momentum in data centers, aerospace and defense, and automated test equipment.

Speaking with JPMorgan analyst Harlan Sur at the firm’s 2026 U.S. All Stars Conference in London, Puccio said the company’s growth has expanded beyond the early-cycle strength it saw in certain specialized businesses. He said Analog Devices is now seeing growth “across pretty much all of the end markets” and geographies.

Puccio said aerospace and defense, automated test equipment, and data centers account for roughly 30% of the company’s business and have been growing at high rates. At the same time, a broader industrial recovery, including factory automation, has added to the company’s growth trajectory. Demand Outlook and Inventory Puccio declined to provide a mid-quarter bookings update or formal guidance for the January quarter, but said Analog Devices expects to perform better than its normal seasonal pattern. The company’s first fiscal quarter is typically down in the mid-single digits sequentially, he said, but current conditions suggest it can deliver an “above-seasonal” quarter.

The CFO said the company is receiving orders further into the future than it had six months ago, improving visibility into the second quarter. That added visibility is useful because Analog Devices begins wafer production about six months before product delivery, he said.

Analog Devices has been deliberately rebuilding inventory on its balance sheet and supplying additional inventory to distribution channels. However, Puccio said accelerating sell-through is offsetting those efforts. He expects gross inventory to rise in the fourth quarter while inventory days remain flat, and expects channel inventory to stay slightly below the company’s target of six to seven weeks.

He characterized the demand environment as uneven across product lines. In data centers, aerospace and defense, and automated test equipment, Analog Devices is already shipping at or above historical consumption levels, according to Puccio. Other businesses remain below those levels, however. More than half of the company’s industrial subsegments remain double digits below the consumption line, he said.

Puccio added that the company has not yet seen a broad customer inventory-replenishment cycle. Instead, he said demand in the faster-growing segments reflects visible end-market requirements rather than customers building excess stock.

Data Center, Defense and Test Equipment Growth Analog Devices’ aerospace and defense business was nearing a $2 billion annualized revenue run rate as of the fiscal third-quarter exit rate, up from approximately $1 billion a year earlier, Puccio said. The business includes government contracts and commercial products used in satellites, drones and missile-defense systems.

Puccio said the company believes its aerospace and defense franchise can grow at a double-digit rate for the next decade, supported by defense-spending trends and Analog Devices’ portfolio of mixed-signal, RF and related technologies.

Its automated test equipment business was operating at an annualized revenue run rate of about $1 billion exiting the third quarter. Puccio said higher-bandwidth memory and high-performance computing are increasing the complexity of semiconductor testers, driving more Analog Devices content per system.

The company’s data center business is running at about $2 billion annually, split roughly equally between power and optical products, he said. The business has been growing about 100% year over year, according to Sur.

Puccio said Analog Devices is expanding its power offerings from the electric grid to the chip, including power management, conversion and delivery. He highlighted the company’s Empower acquisition as a way to participate in vertical power delivery near processors. The company estimates that its technology could reduce power loss by more than 15% in certain data center applications, he said.

In optical networking, Puccio said Analog Devices supplies optical control systems, including products used to control lasers. The company is shipping 1.6-terabit solutions and sees future opportunities as data center networking speeds advance.

Design Wins, Acquisitions and Margins Puccio said Analog Devices is on track in fiscal 2026 to exceed the design-win growth it achieved in fiscal 2025, with particularly strong momentum in data centers and aerospace and defense. He said design wins are an important indicator of the company’s opportunities over the next three to five years.

He also discussed Analog Devices’ pending acquisition of Alif Semiconductor, which supplies low-power microcontroller and compute products designed for artificial intelligence edge applications. Puccio said the transaction will accelerate Analog Devices’ ability to offer integrated systems that sense, compute and act at the physical edge, including in robotics and other applications where lower latency, power use and data transfer can be important.

The deal had not closed at the time of the conference, and Puccio said it is not expected to be material to revenue or costs in the near term. He said the business is more likely to ramp beginning around 2028.

On pricing, Puccio said Analog Devices has implemented two price increases, including one largely directed at distribution channels and a more recent increase applied broadly to customers. He said the actions are intended to recover sustained inflation in areas such as wafers, assembly and transportation, rather than expand margins. The company has no additional pricing actions currently planned.

Puccio said Analog Devices guided for a record gross margin in the fourth quarter. He identified a greater industrial revenue mix, stronger fixed-cost absorption from revenue growth and potential future pricing actions as factors that could support margins. He also reaffirmed the company’s long-term free-cash-flow margin model of 34% to 40% of revenue.

About Analog Devices (NASDAQ:ADI) Analog Devices, Inc (NASDAQ: ADI) is a global semiconductor company that designs and manufactures high-performance analog, mixed-signal, power-management and radio-frequency integrated circuits. Its technologies help convert real-world signals—such as temperature, pressure, sound, motion and light—into data that electronic systems can process and use.

The company offers data converters, amplifiers, power-management products, sensors, embedded processors, connectivity solutions and other semiconductor components.

Analog Devices, Inc. (ADI) Presents at U.S. All Stars Conference Transcript

It has been about a month since the last earnings report for Analog Devices (ADI - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Analog Devices due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/YAnalog Devices reported third-quarter fiscal 2026 non-GAAP earnings of $3.45 per share, which beat the Zacks Consensus Estimate by 3.6%. The company reported earnings of $2.05 per share in the year-ago period.

Analog Devices’ third-quarter fiscal 2026 revenues of $4.02 billion surpassed the Zacks Consensus Estimate by 2.5%. The top line increased 40% from the year-ago quarter’s revenues of $2.88 billion.

Analog Devices’ Q3 DetailsIndustrial: Revenues from this segment were $1.97 billion, representing 49% of total revenues and reflecting 53% year-over-year growth.
Automotive: Revenues reached $998.2 million (or 25% of total revenue), up 16% year over year.

Communications: Revenues came in at $654.5 million, accounting for 16% of total revenues and rising 84% year over year.

Consumer: The segment generated $397.2 million (or 10% of revenues), marking a 6% increase compared with the same quarter last year.

The adjusted gross margin expanded 330 basis points to 72.5%, while the adjusted operating margin was 50%, up 780 basis points year over year.

ADI’s Balance Sheet and Cash FlowsAs of Aug. 1, 2026, cash and cash equivalents were approximately $2.17 billion, down from $2.44 billion as of May 2, 2026. The company also held $159.1 million in short-term investments during the third quarter.

Long-term debt was $6.77 billion compared with $7.24 billion at the end of the previous quarter.

Analog Devices generated $1.6 billion in operating cash flow and $1.46 billion in free cash flow during the third quarter of fiscal 2026.

In the fiscal third quarter, the company returned $1.7 billion to shareholders, comprising $535 million in dividends and $1.16 billion in share repurchases.

ADI Initiates Q4 FY26 GuidanceFor the fourth quarter of fiscal 2026, management expects revenues to be $4.3 billion (+/- $100 million).

The company projects a reported operating margin of approximately 42.6% (+/-150 bps) and an adjusted operating margin of about 52% (+/-100 bps).

Reported earnings are anticipated to be $3.14 (+/-$0.15) per share, while adjusted earnings are expected to be $3.86 (+/-$0.15) per share.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 11.74% due to these changes.

VGM ScoresCurrently, Analog Devices has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has 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 D. 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.

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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.

Bank of America Corp DE acquired a new stake in Analog Devices, Inc. (NASDAQ:ADI – Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 8,996,351 shares of the semiconductor company’s stock, valued at approximately $3,573,081,000. Bank of America Corp DE owned 1.85% of Analog Devices as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Contravisory Investment Management Inc. acquired a new stake in shares of Analog Devices during the 2nd quarter valued at approximately $25,000. Manning & Napier Advisors LLC purchased a new position in Analog Devices in the 2nd quarter valued at approximately $25,000. Dunhill Financial LLC purchased a new position in Analog Devices in the 2nd quarter valued at approximately $32,000. Quantbot Technologies LP acquired a new position in Analog Devices during the second quarter worth $33,000. Finally, Banque Transatlantique SA acquired a new position in Analog Devices during the fourth quarter worth $25,000. Hedge funds and other institutional investors own 86.81% of the company’s stock.

Wall Street Analyst Weigh In Several analysts have weighed in on the company. Stifel Nicolaus upped their target price on Analog Devices from $450.00 to $498.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Morgan Stanley increased their price objective on shares of Analog Devices from $428.00 to $458.00 and gave the company an “overweight” rating in a research note on Thursday, August 20th. Fundamental Research set a $550.00 target price on shares of Analog Devices in a report on Monday, June 29th. Weiss Ratings upgraded shares of Analog Devices from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, August 21st. Finally, Wall Street Zen raised shares of Analog Devices from a “hold” rating to a “buy” rating in a report on Sunday, May 24th. Two analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $457.97.

Get Our Latest Stock Report on Analog Devices Insiders Place Their Bets In other Analog Devices news, CFO Richard C. Puccio, Jr. sold 2,683 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $374.56, for a total value of $1,004,944.48. Following the sale, the chief financial officer directly owned 54,177 shares of the company’s stock, valued at approximately $20,292,537.12. This trade represents a 4.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ray Stata sold 1,416 shares of Analog Devices stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $362.85, for a total value of $513,795.60. Following the completion of the sale, the director owned 111,679 shares of the company’s stock, valued at $40,522,725.15. This trade represents a 1.25% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 40,431 shares of company stock valued at $14,987,547. Insiders own 0.36% of the company’s stock.

Analog Devices Trading Down 4.7% Shares of ADI stock opened at $361.02 on Tuesday. The firm has a 50-day moving average price of $374.58 and a 200 day moving average price of $374.84. Analog Devices, Inc. has a twelve month low of $223.47 and a twelve month high of $445.91. The company has a market capitalization of $174.94 billion, a price-to-earnings ratio of 42.83, a PEG ratio of 1.17 and a beta of 1.20. The company has a current ratio of 1.25, a quick ratio of 0.91 and a debt-to-equity ratio of 0.20.

Analog Devices (NASDAQ:ADI – Get Free Report) last released its quarterly earnings results on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.11. The company had revenue of $4.02 billion for the quarter, compared to analysts’ expectations of $3.92 billion. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The firm’s revenue for the quarter was up 39.2% compared to the same quarter last year. During the same period last year, the company earned $2.05 EPS. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. Research analysts forecast that Analog Devices, Inc. will post 12.96 earnings per share for the current fiscal year.

Analog Devices Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a $1.10 dividend. This represents a $4.40 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, September 1st. Analog Devices’s payout ratio is presently 52.19%.

About Analog Devices (Free Report)

Analog Devices, Inc (NASDAQ: ADI) is a global semiconductor company that designs and manufactures high-performance analog, mixed-signal, power-management and radio-frequency integrated circuits. Its technologies help convert real-world signals—such as temperature, pressure, sound, motion and light—into data that electronic systems can process and use.

The company offers data converters, amplifiers, power-management products, sensors, embedded processors, connectivity solutions and other semiconductor components.

Further Reading Five stocks we like better than Analog Devices Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down Want to see what other hedge funds are holding ADI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Analog Devices, Inc. (NASDAQ:ADI – Free Report).

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Nvidia’s (NVDA) Jensen Huang believes that one day, manufacturing robotics will be a $50 trillion industry.

But what are you supposed to do with a number like that? It’s a destination, not a signal – and destinations are hard to trade until you know the route. 

JPMorgan (JPM) just gave investors a much smaller one that may matter far more right now: $10 an hour.

That is roughly what the bank believes a humanoid robot could soon cost to operate inside a warehouse or factory. A human worker performing similar work costs closer to $30 per hour.

Productivity is still a problem. JPMorgan estimates that it currently takes about two humanoids to match the output of one human worker.

Even then, the math is starting to work.

Two robots operating at $10–$12 per hour would cost roughly $20–$24 for the same amount of output as one $30-per-hour worker. By 2030, JPMorgan expects that gap to narrow to roughly 1.2–1.3 robots per worker. At that point, the effective labor cost could fall toward $12–$16 per hour.

That is the number that changes the Physical AI trade.

Why $10-an-Hour Humanoid Robots Could Change Factory Economics The $10-an-hour figure lands in the middle of a very real labor crisis. 

JPMorgan estimates that roughly 462,000 U.S. manufacturing jobs are currently unfilled, with that shortage potentially reaching 1.6 million positions by 2030.

The bank believes humanoids could handle about 25% of those openings with today’s technology. Continued improvements in dexterity, intelligence, and reliability could push that figure toward 50% by the end of the decade.

Factories give humanoids a good starting point. The floors are predictable. The tools were built for human hands. The tasks repeat often enough to train and measure. And companies are already struggling to find enough people willing to perform many of those jobs.

Material handling. Parts transfers. Machine tending. Quality inspection. Moving equipment between workstations. Sorting components for an assembly line.

The robot revolution can start there.

Humanoid Robots Are Already Working In Factories Start with BMW, which has the receipts.

Over a 10-month deployment at the automaker’s Spartanburg, South Carolina, plant, Figure AI’s Figure 02 robot supported production of more than 30,000 BMW X3 vehicles. It moved over 90,000 components and logged roughly 1,250 hours of real factory work.

BMW has now brought Figure 03 into the same plant for a more complicated logistics job: picking unsorted components, organizing them in the correct sequence, and preparing them for delivery to the assembly line.

Figure 02 proved that a humanoid could repeat a precise task safely under real production conditions. Figure 03 is being asked to deal with more variation, use more dexterity, and coordinate its whole body while manipulating parts.

The work is getting harder. And the robots are up for the task.

Meta (META) is exploring a similar path inside its own data centers. The company has been testing robots that can move equipment, reset servers, and eventually help with tasks such as plugging in cables.

Those may sound like small jobs. But automating them could lower labor costs while reducing the need to send people into hot, noisy, and highly controlled server environments.

Hyundai is moving toward much larger scale.

The automaker plans to manufacture as many as 30,000 Boston Dynamics Atlas robots annually by 2028 and gradually introduce them into factories and warehouses. Early jobs will focus on parts sequencing and other tasks before Atlas moves toward more complicated assembly work.

These companies are starting where the spreadsheet math is easiest: jobs with a known hourly cost and a chronic shortage of people willing to do them.

Why Humanoid Robot Economics Still Have to Prove Themselves JPMorgan’s math is compelling – but it is still just a model.

A company cannot just wheel a humanoid onto the factory floor, turn it on, and call it a day. Integration costs money. Workflows have to change. Employees need training. Robots require maintenance, charging, spare parts, software support, and reliable network connections.

As we’ve mentioned, the current machines are also less productive than people are. And hands remain one of the biggest bottlenecks.

Robot Hands Are a Major Bottleneck A humanoid may have excellent balance and sophisticated vision, but factory work often comes down to the fingers: grip the part, adjust the angle, feel whether it is seated correctly, apply just the right amount of pressure…

Hyundai and Boston Dynamics are making progress on the robot brain and the manufacturing supply chain. The hands may still require outside specialists.

Then there is the price of the machine itself.

JPMorgan estimates that a capable humanoid currently costs around $120,000. Elon Musk has discussed a much lower long-term target of $20,000–$30,000 for Tesla’s Optimus robot, but commercial buyers care more about reliability than a distant sticker-price goal.

A $120,000 robot that works two shifts a day for years may create more value than a $25,000 robot that regularly breaks down.

The winning machine will earn its keep.

Robot Training Data Is Becoming a Physical AI Bottleneck Robots also face another challenge that chatbots never had.

The internet already contained enormous amounts of text, code, images, and video that labs could use to train large AI models.

The internet does not contain enough high-quality data showing exactly how human hands grip a cup, sort a bin, connect a cable, load a dishwasher, or adjust when an object slips.

Physical data has to be collected from the physical world.

Figure Is Building a Massive Human-Task Dataset Figure recently unveiled a large-scale effort called Index to capture that missing information. The company says contributors across more than 100 countries have already uploaded over 16 million videos showing real human tasks. Figure has paid contributors $15 million and says it plans to spend more than $1 billion on data and computing over the next year.

The numbers are company-reported, and the program still has to prove that more video translates into more capable robots. But the direction is clear.

Teaching robots about the physical world is becoming its own industry.

Nvidia is building the tools around that effort. Its Isaac and Cosmos platforms help developers simulate environments, generate training data, teach robots new skills, and test them before deployment. The company is also working with major industrial and robotics players including ABB, Agility, Figure, KUKA, Teradyne (TER), and Yaskawa.

The Physical AI stack is filling in from both directions.

Better data improves the brain. Better components improve the body.

The Humanoid Robot Supply Chain Is Bigger Than the Robot Maker The most visible companies will keep attracting the most attention.

Tesla (TSLA) has Optimus. Hyundai owns Boston Dynamics. Private startups such as Figure, Apptronik, Agility Robotics, and 1X are competing to put humanoids into factories, warehouses, stores, and, eventually, homes.

But the robot maker captures only one part of the opportunity.

Every humanoid needs a brain powerful enough to understand its surroundings and make decisions locally. It needs cameras and sensors to see. Motors and actuators to move. Power-management chips to control dozens of joints. Batteries to keep operating. Memory to store models and data. Connectivity to communicate with the cloud and other machines.

That is why Nvidia sees such a large market.

Huang’s $50 trillion figure is not a near-term forecast for humanoid-robot sales. It reflects the enormous amount of manufacturing activity and labor that intelligent machines could eventually touch.

Nvidia wants to supply the training infrastructure, simulation software, world models, safety systems, and onboard computing behind those machines.

And that’s just the brain. Work your way down the body, and there’s a public company at nearly every joint.

Machine-vision companies help robots see. Analog and power-semiconductor suppliers translate sensor signals and control motors. Automation specialists help factories integrate machines into workflows. Networking and edge-computing companies keep robot fleets connected. 

We walked through many of these names – Nvidia, Cognex (CGNX), Teradyne, Rockwell Automation (ROK), Honeywell (HON), Qualcomm (QCOM), Analog Devices (ADI), Monolithic Power (MPWR) – layer by layer in our recent breakdown of who gets paid when AI leaves the cloud. 

The robot brand that wins the headlines may change.

The need for the underlying components will grow with every unit that ships.

The Bottom Line: Humanoid Robots Are Moving From Demo to Economics The first mass market for humanoids may be the night shift America cannot staff.

And we don’t think anyone is racing toward that market harder than Elon Musk.

Optimus gets the demo-day applause. But watch what Musk is actually assembling around it: the AI models to run it, the compute to train it, the connectivity to link it, the factories to mass-produce it. Piece by piece, he’s pulling the entire Physical AI stack under one roof – the same way Rockefeller once pulled the entire oil business under his.

Rockefeller, famously, even made his own barrels. But here’s the thing about vertical empires: they still can’t make everything. 

Standard Oil needed railroads, steel, and machinery from outside its walls – and the fortunes made supplying Rockefeller rivaled the ones made alongside him.

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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?

Let's take a look at what these Wall Street heavyweights have to say about Analog Devices (ADI - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Analog Devices currently has an average brokerage recommendation (ABR) of 1.25, 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 1.25 approximates between Strong Buy and Buy.

Of the 32 recommendations that derive the current ABR, 26 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 81.3% 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.

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.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

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.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

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.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

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.

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.

Is ADI Worth Investing In?Looking at the earnings estimate revisions for Analog Devices, the Zacks Consensus Estimate for the current year has increased 4.3% over the past month to $12.96.

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.

Analog Devices (ADI.O) will acquire privately held Alif Semiconductor for $1.35 billion in ​cash, the companies said on Wednesday, ‌expanding ADI's on-device capabilities as AI applications increasingly move into physical systems.

The acquisition would ​combine ADI's sensing, signal-processing and power-management ​technologies with Alif's AI processors, allowing ⁠customers to build systems that can ​analyze and respond in real time.

Here are ​some more details:

Pleasanton, California-based Alif develops low-power processors that combine AI computing, data from sensors, ​connectivity and security functions for consumer ​and industrial applications.

Under the agreement, analog chipmaker ADI ‌will ⁠pay Alif $1.35 billion upfront and could make additional contingent payments of up to $200 million.

Alif's chips are already shipping and ​have secured ​customers in ⁠the consumer and industrial sectors.

PJT Partners and Qatalyst Partners ​are financially advising ADI and Alif ​on ⁠the deal, respectively.

Last month, Wilmington, Massachusetts-based ADI forecast fourth-quarter revenue and profit above Wall ⁠Street ​estimates, after reporting a ​40% rise in its third-quarter revenue.

Analog Devices' AI data center and industrial strength are boosting growth and margins, despite intense competition and a premium valuation.

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. Has Analog Devices (ADI - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Analog Devices is one of 614 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ADI's full-year earnings has moved 5.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ADI has moved about 31.5% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 17.6% on a year-to-date basis. As we can see, Analog Devices is performing better than its sector in the calendar year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is ASM International NV (ASMIY - Free Report) . The stock has returned 49.2% year-to-date.

In ASM International NV's case, the consensus EPS estimate for the current year increased 2.9% over the past three months. 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 #25 in the Zacks Industry Rank. On average, this group has gained an average of 29.3% so far this year, meaning that ADI is performing better in terms of year-to-date returns.

On the other hand, ASM International NV belongs to the Semiconductor - Communications industry. This 1-stock industry is currently ranked #10.

Analog Devices and ASM International NV could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

The artificial intelligence (AI) building boom is far more than just chips. Data centers need to store those chips, and each of those facilities has requirements centering around power, liquid cooling, and other components.

Analog Devices (ADI -3.40%) specializes in energy management hardware that connects power to data centers. The company's hardware also safely distributes electricity to multiple servers to avoid overheating.

This positioning has helped the 61-year-old company become a hot AI stock, and recent fundamentals suggest that momentum will continue.

Image source: Getty Images.

A record outlook highlights AI gains Analog Devices reported robust fiscal 2026 third-quarter results (ended Aug. 1). Revenue soared by 40% year over year, with the Data Center and Industrial segment fueling most of that growth. Chief Executive Officer Vincent Roche cited "deep customer collaboration" and rising demand when discussing results.

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However, the most bullish indicator came when the company announced guidance for its fiscal fourth quarter. A midpoint of $4.3 billion in revenue implies another quarter of 40% year-over-year revenue growth.

Analog Devices acts as an intermediary for the two hottest parts of the AI boom: chips and power. That suggests revenue growth will continue beyond fiscal 2026, especially when considering the projections for the AI industry. According to Grand View Research, the AI market is expected to achieve a 31% compound annual growth rate through 2033.

AI growth without the capex issues The company is primed for the AI boom, but it doesn't face the same capital expenditure (capex) issues that plague hyperscalers. Tech giants are committing billions of dollars toward chips, data center storage, and other components.

Neoclouds like Nebius have been raising substantial capital to build AI data centers to keep up with demand. These efforts can produce parabolic revenue growth, but they also require a lot of up-front capital and debt.

Analog Devices doesn't face soaring expenses. The company returned $1.7 billion to shareholders through dividends and share repurchases in its third quarter. Net income more than doubled year over year, reaching $1.34 billion. That resulted in a 33% net profit margin.

The trend of rising profit margins should continue. Net operating expenses only rose about 13% year over year in its third quarter, reaching $1.09 billion. Its net operating expense came to $3.2 billion for the first nine months of its fiscal 2026, which is also only a 13% year-over-year increase.

The company's analog chip production is more basic than graphics processing units (GPUs) and memory chips. Equipment that was made a decade ago can still produce analog chips, while equipment for GPUs and memory chips must be constantly updated and modernized, which results in much higher capex.

The valuation is promising Analog Devices' operating expense should rise at a relatively modest rate while sales surge. That implies wider profit margins in the future, but even with this forecast, the growth stock still manages to trade at an attractive valuation.

It's valued at only a 22.5 forward price-to-earnings ratio (P/E), and its 0.56 price/earnings-to-growth ratio (PEG) also hints at an undervalued price point. The company's valuations were much higher just a quarter ago.

The analog chips trade doesn't have as much attention as memory chips and GPUs. While those two industries are growing faster than analog, companies like Analog Devices don't have to worry about making soaring capital expenditures.

The company already has announced that its profits will continue to outpace revenue growth. Its forecast for the fourth quarter implies $3.86 in adjusted earnings per share (EPS) at the midpoint. Management reported $2.26 adjusted EPS in its fiscal 2025 fourth quarter, so the midpoint projection represents a 71% year-over-year increase.

Don't expect Analog Devices to post skyrocketing revenue numbers like Micron. However, it doesn't have to reach those lofty standards to meaningfully expand profit margins and outpace the S&P 500.