Analog Devices Inc.

Business description

Designer and manufacturer of high-performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits. The company serves four primary markets: Industrials (45% of sales), Automotive (30%), Communications (13%), and Consumer (12%).

Key financials

• Price: $427.58 (06/15/2026)
• 12-Mo Target: $435.00
• Market Cap: $208.27B
• Trailing P/E: 43.37
• Dividend Yield: 1.03%
• 2026E Revenue: $14,675.00M
• 2026E EPS: $12.30

Competitive moat

High proprietary design content with long product life cycles and stable pricing. Leading market share in critical converter and amplifier categories. A hybrid manufacturing model reduces reliance on foundries and enhances long-term earnings potential.

Recent developments

• AI Infrastructure: Power management is becoming a strategic constraint in AI data centers, creating opportunities for ADI's system-level power delivery. The shift to optical switching in AI networks also leverages ADI's precision control portfolio.
• Industrial Recovery: Sustained recovery in factory automation and instrumentation, with a book-to-bill ratio well above one for the Industrial segment.
• Automotive Trends: Secular growth in ADAS, electrification, and immersive in-cabin experiences, with aggressive adoption in China.

Investment risks / red flags

• Geopolitical: Approximately 25% of total revenue comes from China, posing risks from trade disruptions or export restrictions.
• Cyclicality: Vulnerable to the broader semiconductor industry's sales cycles and macroeconomic headwinds.
• Inventory Risk: Recent increases in on-balance-sheet and channel inventory could be problematic if demand growth stalls.

H-Score signals

• TBI multi factor score: 85

Theme exposure

• [[AI Infrastructure]]
• [[Semiconductors]]
• [[Electrification]]

Related

• [[Information Technology]]
• [[AI Infrastructure]]
• [[Semiconductors]]