ADI Price & AI Analysis — Analog Devices Inc | HeyTheo
Market Cap
203.5683B
Mega Cap
P/E Ratio
62.1
Fwd: 34.13
EPS (TTM)
$6.73
Div. Yield
1.01%
Theo Outlook
Analog Devices (ADI) presents a bullish thesis with a market capitalization of $188.46 billion, trailing P/E of 57.49, forward P/E of 31.55, and EPS of $6.73. Quarterly revenue growth of 37.2% year-over-year signals strong momentum in its semiconductor business, supporting a premium valuation despite the elevated trailing multiple.
Key catalysts include robust earnings momentum from its data conversion and signal processing portfolio, ongoing market expansion in industrial and automotive sectors, and analyst consensus with a target price of $452.33 alongside 7 strong buy ratings. Recent quarterly results and product innovation in power management continue to drive growth.
Risks encompass intense competition in the semiconductor industry, potential regulatory hurdles on technology exports, and macroeconomic headwinds such as slowing tech spending. These are mitigated by ADI's diversified revenue streams, high barriers to entry via proprietary technology, and strong institutional ownership at 93.5%. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
Fundamental Snapshot
Revenue
12.7402B
EBITDA
6.1494B
Gross Profit
8.2163B
Operating Margin
38.1%
Profit Margin
26.0%
ROE
9.6%
Book Value
$69.27
Beta
1.183
52-Wk High
$445.91
52-Wk Low
$215.47
Avg Volume
11.9423M
PEG Ratio
0.915
Frequently Asked Questions
What is Analog Devices' business model?
Analog Devices Inc. (ADI) operates as a fabless semiconductor company focused on designing and manufacturing analog, mixed-signal, and digital signal processing integrated circuits. It generates revenue primarily through sales of data converters, amplifiers, and power management solutions to industrial, automotive, and communications markets, with TTM revenue of $12.74 billion.
What are ADI's main revenue sources?
ADI derives the bulk of its revenue from the industrial (largest segment), automotive, and communications end markets. TTM revenue stands at $12.74 billion, supported by a gross profit of $8.22 billion and quarterly revenue growth of 37.2% year-over-year.
What are ADI's key competitive advantages?
ADI's advantages stem from its specialized expertise in high-performance analog technology, extensive IP portfolio, and long-standing customer relationships. With a market cap of $188.46 billion and 93.5% institutional ownership, it maintains pricing power and high barriers to entry in signal processing.
What are the key risks for ADI investors?
Primary risks include cyclical semiconductor demand, competition from peers like Texas Instruments, and macro headwinds affecting tech spending. The stock's trailing P/E of 57.49 reflects growth expectations but leaves room for volatility; a 1% dividend yield and ex-dividend date of June 2, 2026, provide some income stability.
What is ADI's growth outlook?
ADI shows strong growth potential with 37.2% quarterly revenue growth and EPS of $6.73. Analysts project further upside with a target price of $452.33 and 28 buy ratings; next earnings are expected following the April 30, 2026 quarter, supported by expansion in high-margin segments.
