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Analog Devices (ADI)
NASDAQ:ADI
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Analog Devices (ADI) AI Stock Analysis

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ADI

Analog Devices

(NASDAQ:ADI)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$273.00
▲(12.34% Upside)
Analog Devices' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust revenue growth and profitability, particularly in industrial and communications sectors, are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show neutral to slightly negative momentum, which tempers the overall score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand across sectors, enhancing market position and supporting long-term expansion.
Industrial Sector Performance
Growth in industrial sectors like aerospace and automation suggests resilience and potential for sustained revenue streams.
Cash Flow Management
Strong cash flow management supports strategic investments and shareholder returns, bolstering financial stability.
Negative Factors
Automotive Revenue Challenges
Pull-ins in automotive revenue may lead to volatility and impact future growth, necessitating careful market navigation.
Utilization Challenges
Lower utilization impacting margins could pressure profitability, requiring operational adjustments to maintain efficiency.
Supply Limitations
Supply constraints in key sectors may hinder growth opportunities, necessitating strategic supply chain management.

Analog Devices (ADI) vs. SPDR S&P 500 ETF (SPY)

Analog Devices Business Overview & Revenue Model

Company DescriptionAnalog Devices, Inc. (ADI) is a leading global semiconductor company specializing in analog, mixed-signal, and digital signal processing (DSP) technologies. Founded in 1965 and headquartered in Norwood, Massachusetts, ADI serves a wide range of sectors including industrial automation, automotive, communications, consumer electronics, and healthcare. The company develops high-performance signal processing solutions, precision analog components, and integrated circuits that enable the conversion, conditioning, and processing of real-world signals, making technology smarter and more efficient.
How the Company Makes MoneyAnalog Devices generates revenue primarily through the sale of its semiconductor products, which include amplifiers, data converters, microcontrollers, and DSPs. The company operates a diversified revenue model that encompasses multiple sectors, with industrial applications contributing significantly to its earnings, followed by automotive and communications sectors. Key revenue streams are driven by direct sales to original equipment manufacturers (OEMs) and distributors, as well as long-term partnerships with major technology firms. ADI also invests in research and development to innovate its product offerings, which enhances its competitive edge and drives sales in emerging markets. Additionally, the company benefits from economies of scale in manufacturing and strategic acquisitions that expand its product portfolio and market reach.

Analog Devices Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Chart InsightsAnalog Devices is experiencing a strong recovery in its industrial and automotive segments, with notable year-over-year growth driven by demand in China and a broader market recovery. The earnings call highlights a 24% growth in the automotive segment and a 17% increase in industrial, despite tariff uncertainties impacting order patterns. The consumer and communications segments also show robust growth, reflecting a cyclical upturn. However, inventory management and tariff-related challenges could pose risks. The company's positive book-to-bill ratios suggest continued strong demand across all sectors.
Data provided by:Main Street Data

Analog Devices Earnings Call Summary

Earnings Call Date:Aug 20, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
Analog Devices reported strong revenue growth across all major sectors, especially in industrial and communications. However, there were challenges in automotive pull-ins and utilization that impacted margins. Despite these issues, the outlook remains positive with strong growth expected in industrial and a record year for automotive.
Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue of $2.88 billion exceeded expectations, up 9% sequentially and 25% year-over-year.
Industrial Sector Recovery
Industrial revenue, representing 45% of total revenue, grew 12% sequentially and 23% year-over-year, with strong performance across instrumentation, automation, aerospace, defense, and energy management.
Record Automotive Revenue
Automotive revenue was down 1% sequentially but up 22% year-over-year, marking it as a record year for automotive revenue, driven by connectivity and power solutions.
Communications and Consumer Growth
Communications revenue grew 18% sequentially and 40% year-over-year, while consumer revenue increased 16% sequentially and 21% year-over-year.
High Operating Margin
Operating margin reached 42.2%, up 100 basis points sequentially and year-over-year.
Strong Free Cash Flow
Free cash flow over the trailing 12 months was $3.7 billion or 35% of revenue, with $3.5 billion returned to shareholders.
Negative Updates
Automotive Revenue Pull-ins
Automotive revenue saw pull-ins, particularly in China, which may affect future quarters' performance.
Utilization Challenges
Unexpected lower utilization affected gross margin, which was lower than anticipated at 69%.
Supply Limitations in Aerospace and Defense
Supply limitations in the aerospace and defense sector due to high demand, impacting ability to fully capture the opportunity.
Company Guidance
During the Analog Devices Third Quarter Fiscal Year 2025 Earnings Conference Call, the company provided guidance that included several key metrics. The third-quarter revenue was reported at $2.88 billion, which exceeded expectations, marking a 9% sequential increase and a 25% year-over-year growth. Industrial, which constituted 45% of the revenue, grew by 12% sequentially and 23% year-over-year, driven by sectors such as aerospace and defense, automation, and AI infrastructure. Automotive revenue, contributing 30% of the total, showed a 22% year-over-year growth despite a 1% sequential decline. Communications revenue increased by 18% sequentially and 40% year-over-year, while consumer revenue grew 16% sequentially and 21% year-over-year. The gross margin for the quarter was 69.2%, with an operating margin of 42.2%. The EPS was $2.05, representing a 30% year-over-year increase. Looking ahead to the fourth quarter, revenue is expected to be $3 billion, plus or minus $100 million, with an operating margin of approximately 43.5% and an EPS projection of $2.22, plus or minus $0.10. The company anticipates continued growth, particularly in the industrial market, and is mindful of geopolitical and macroeconomic uncertainties.

Analog Devices Financial Statement Overview

Summary
Analog Devices demonstrates strong financial performance with robust profitability, efficient cash flow management, and prudent leverage. The company shows resilience in revenue growth and profitability, although recent trends suggest a need for vigilance in maintaining growth momentum.
Income Statement
85
Very Positive
Analog Devices shows strong profitability with a consistent increase in gross profit and net profit margins over the years. The TTM data indicates a healthy revenue growth rate of 5.79%, demonstrating resilience in the semiconductor industry. The EBIT and EBITDA margins are robust, reflecting efficient operational management. However, the revenue growth has slowed compared to previous years, which could be a concern if the trend continues.
Balance Sheet
78
Positive
The company's balance sheet is solid with a low debt-to-equity ratio of 0.25 in the TTM, indicating prudent financial leverage. The return on equity has improved to 5.62% in the TTM, showing better utilization of equity. However, the equity ratio has decreased slightly over the years, suggesting a need for careful monitoring of asset management.
Cash Flow
82
Very Positive
Analog Devices has demonstrated strong cash flow management with a significant free cash flow growth rate of 11.68% in the TTM. The operating cash flow to net income ratio is healthy at 1.40, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also robust at 0.88, reflecting good cash conversion. However, fluctuations in free cash flow growth in previous years suggest potential volatility.
BreakdownTTMDec 2024Dec 2023Dec 2020Dec 2018Dec 2017
Income Statement
Total Revenue7.94B9.43B12.31B5.60B6.20B5.11B
Gross Profit4.83B5.38B7.88B3.69B4.23B3.06B
EBITDA3.56B4.20B6.17B2.32B2.71B1.67B
Net Income1.48B1.64B3.31B1.22B1.50B727.26M
Balance Sheet
Total Assets48.19B48.23B48.79B21.47B20.45B21.14B
Cash, Cash Equivalents and Short-Term Investments3.47B2.36B958.06M1.06B816.59M1.05B
Total Debt8.69B8.01B7.01B5.19B6.33B7.85B
Total Liabilities14.11B13.05B13.23B9.47B9.46B10.98B
Stockholders Equity34.09B35.18B35.57B12.00B10.99B10.16B
Cash Flow
Free Cash Flow2.79B3.12B3.56B1.84B2.19B908.49M
Operating Cash Flow3.11B3.85B4.82B2.01B2.44B1.11B
Investing Cash Flow-1.10B-1.10B-1.27B-180.52M-314.00M-6.62B
Financing Cash Flow-1.69B-1.71B-4.06B-1.42B-2.36B5.63B

Analog Devices Technical Analysis

Technical Analysis Sentiment
Positive
Last Price243.01
Price Trends
50DMA
243.99
Negative
100DMA
238.03
Positive
200DMA
222.34
Positive
Market Momentum
MACD
-0.18
Negative
RSI
51.84
Neutral
STOCH
59.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Positive. The current price of 243.01 is above the 20-day moving average (MA) of 239.80, below the 50-day MA of 243.99, and above the 200-day MA of 222.34, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 59.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADI.

Analog Devices Risk Analysis

Analog Devices disclosed 29 risk factors in its most recent earnings report. Analog Devices reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Analog Devices Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$182.29B16.2944.62%1.85%15.82%34.20%
$182.23B27.2735.64%0.74%6.70%-5.95%
$117.09B60.555.65%1.60%7.08%18.39%
$72.53B-0.75%0.27%37.05%89.40%
$153.68B30.8629.60%3.21%9.90%1.65%
$55.25B25.9023.11%1.83%-7.53%-21.88%
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADI
Analog Devices
243.01
11.76
5.09%
AMAT
Applied Materials
231.33
43.17
22.94%
MRVL
Marvell
88.71
4.11
4.86%
NXPI
NXP Semiconductors
221.56
-29.28
-11.67%
QCOM
Qualcomm
187.68
15.56
9.04%
TXN
Texas Instruments
169.41
-35.77
-17.43%

Analog Devices Corporate Events

Business Operations and StrategyFinancial Disclosures
Analog Devices Engages Investors with Strategic Presentation
Positive
Sep 19, 2025

On September 19, 2025, Analog Devices, Inc. plans to engage with investors through a presentation as part of its shareholder engagement program. The presentation will cover various forward-looking statements, including the company’s strategy, environmental goals, and financial performance. The company emphasizes its commitment to sustainability and innovation, with significant investments in R&D and a diverse product portfolio. The announcement highlights the company’s strong financial profile, with a market cap of $110.7 billion and annual revenue of $9.4 billion in 2024. Additionally, Analog Devices is focused on aligning executive compensation with shareholder interests and maintaining a diverse and independent board to ensure effective governance.

The most recent analyst rating on (ADI) stock is a Buy with a $290.00 price target. To see the full list of analyst forecasts on Analog Devices stock, see the ADI Stock Forecast page.

Analog Devices Reports Strong Earnings with Positive Outlook
Sep 1, 2025

Analog Devices, Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported strong revenue growth across its major sectors, particularly in industrial and communications. However, issues such as automotive pull-ins and utilization impacted margins. Nevertheless, the outlook remains optimistic, with expectations of strong growth in the industrial sector and a record year for automotive.

Analog Devices Posts Strong Q2 2025 Results
Aug 21, 2025

Analog Devices, Inc. (ADI) is a global leader in the semiconductor industry, known for its innovative solutions that bridge the physical and digital worlds, particularly at the Intelligent Edge. The company plays a crucial role in advancing technologies across various sectors, including industrial, automotive, consumer, and communications.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025