Analog Devices (ADI)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
$362.25+1.61%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
Broken: Recent financial performance freshly dropped to the bottom half of its industry.
Analog Devices grows revenue about 37% yearly. Profit margin is near 38%. Dividends rise steadily. AI and industrial demand boost growth.
Revenue growth could slow below 20%. Profit margin might fall under 30%. Rising costs or weak demand could hurt results.
The price is about 3% below our fair value near $395. Analysts expect about 37% revenue growth. Our fair value is 15% below the Street median.
Breaks if: Dividend does not increase or falls next quarter
ADI aims to consistently increase its quarterly dividend, reflecting a commitment to returning value to shareholders.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and margin improvement. However, recent performance has shifted from robust to fragile, indicating a weakened state in the current thesis.
The market appears to have priced in a low expectations gap, suggesting that ADI is seen as cheap compared to its peers. The current valuation reflects a justified premium, indicating that investors may have moderate expectations for future performance.
Management is on track with priorities such as driving revenue growth and improving operating margins, which have shown positive results. However, there is a moderate risk of missing future earnings estimates, particularly given the company's recent history of misses.
Key factors for ADI's future include guidance updates from management, potential rate cuts by the Fed, and performance from sector leaders like NVDA and TSM. These elements could significantly influence market sentiment and ADI's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. Recent financial performance dropped from the top half to the bottom half of its industry. This change indicates a weakened reason to own the stock. However, analysts raised revenue and earnings projections, expecting quarterly revenue of $3.92 billion and EPS of $3.33. This optimism is driven by strong demand in communications and industrial markets.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Operating margin falls below 30% next quarter
Breaks if: YoY revenue growth falls below 20% next year
Over the next 1 to 3 years, ADI's performance will depend on management execution and broader market conditions. Not investment advice.