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Wilmington, Massachusetts-based Analog Devices, Inc. (ADI) is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal, and digital signal processing integrated circuits. With a market cap of $116.5 billion, Analog Devices’ operations span the Americas, Europe, and Asia-Pacific.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Analog Devices fits right into that category with its market cap exceeding this threshold, reflecting its substantial size and influence in the tech sector. The semiconductor manufacturer specializes in data converter products, which are essential for converting real-world analog signals into digital data and vice versa.
Despite its strengths, ADI is down 4% from its all-time high of $244.14, achieved on Jul. 17. ADI stock gained 2.1% over the past three months, lagging behind the S&P 500 Technology Sector SPDR’s (XLK) 5% gains during the same time frame.
Over the longer term, shares of Analog Devices look more appealing. ADI stock rallied 18.3% on a YTD basis and gained 28.6% over the past 52 weeks, outpacing XLK’s 14.5% gains in 2024 and 27% returns over the past 52 weeks.
To confirm the bullish trend, ADI has mostly traded above its 50-day and 200-day moving averages over the past year with some fluctuations.
On Jul. 25, Analog Devices announced its strategic partnership with Flagship Pioneering to accelerate the digitization of biology. This collaboration merges Analog Devices’ semiconductor engineering prowess with Flagship’s applied biology expertise, aiming to unlock new biological insights, advanced diagnostics, and novel interventions. This marks the semiconductor company’s foray into the biotech arena.
Shares of Analog Devices rose on Aug. 21, following its stronger-than-projected Q3 earnings results and in-line guidance for Q4. Its sales, despite declining 24.8% year over year to $2.3 billion, beat the Wall Street projections by 1.7%. Its EPS of $1.58 surpassed the consensus estimates by 5.3%.
Analog Devices’ rival, Microchip Technology Incorporated (MCHP), has substantially underperformed ADI. MCHP dipped 8.9% in 2024 and edged up marginally over the past 52 weeks compared to ADI’s double-digit returns.
Among the 26 analysts covering the ADI stock, the consensus rating is a “Strong Buy.” The mean price target of $259.17 for ADI represents a potential upside of 10.4% from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
