Analog Devices, Inc. (ADI) - Stock Analysis
Last updated: Jan 18, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Robust fiscal 2025 growth (+17% revenue), secular tailwinds from AI and industrial automation, product innovation, strong cash flow ($4.3B FCF), and positive institutional sentiment combine with recent 3.4% price rise over last 21 trading days indicating continued upward momentum.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High margins ⢠Strong ROIC ⢠Elevated payout Analog Devices generates strong margins, ROIC and free cash flow but carries rich valuation multiples, a large intangible-heavy balance sheet and a high payout that limit balance-sheet flexibility.
Price Behavior
Key Price Behavior Insights: ⢠Steady uptrend ⢠Support holds ⢠Minor pullbacks Support Level: $270 Resistance Level: $300 Over the last month ADI climbed from about $270 to above $300, showing steady bullish momentum with support near $270 and a breached $300 resistance that may act as new support amid minor pullbacks.
Sentiment & News
Key News Insights: ⢠AI-driven demand ⢠Analyst upgrades ⢠Institutional buying Analog Devices stock has rallied on strong AI-driven demand across industrial, automotive and data-center markets, supported by analyst upgrades and mixed but notable institutional buying.
AI Summary
ADI has meaningfully shifted from a cyclic analog supplier to a highâASP, softwareâanchored AI enabler driving structurally higher margins and ~$4.3B FY25 FCF, but that premium rests on converting design wins into recurring software revenue and flawless Maxim/Penang execution. Actionable: watch software/ARR growth and grossâmargin trajectory, Maxim synergy cadence, and stock hold >$300 (failure < $270 = momentum/valuation warning).
Description
Analog Devices, Inc. develops and manufactures integrated circuits, software and subsystem products that combine analog, mixed-signal and digital signal processing technologies. Its portfolio includes data converters, power-management solutions, amplifiers, RF/microwave devices, MEMS sensors and high-performance signal-processing components used across automotive, industrial, communications, aerospace and consumer applications. The company sells globally through a direct sales force, distributors and representatives and is headquartered in Wilmington, Massachusetts, with origins dating to 1965.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 31 | Jan 7 | ADI | Analog Devices, Inc. | Robust fiscal 2025 growth (+17% revenue), secular tailwinds from AI and industrial automation, product innovation, strong cash flow ($4.3B FCF), and positive institutional sentiment combine with recent 3.4% price rise over last 21 trading days indicating continued upward momentum. | Closed | +8.0% |
| Nov 26 | Dec 3 | ADI | Analog Devices, Inc. | Strong fiscal 2025 results with 17% revenue growth, 96% free cash flow returned to shareholders, diversified growth driven by AI-related demand, positive technical momentum with a 12% gain over five sessions, and analyst upgrades, supporting moderate near-term upside amid premium valuation and possible pullbacks. | Closed | +7.9% |