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With a market cap of $121.5 billion, Analog Devices, Inc. (ADI) is a prominent global semiconductor company specializing in high-performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits. Headquartered in Wilmington, Massachusetts, its products are widely used in industrial, automotive, communications, healthcare, and consumer applications, enabling technologies such as advanced sensing, power management, connectivity, and signal processing.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Analog Devices fits this description perfectly. ADI is known for innovation in precision and power-efficient solutions that bridge the physical and digital worlds.
ADI recently touched its 52-week high of $258.13 on Aug. 28 and is currently trading 4.3% below the peak. Over the last three months, the stock has surged 13.3%, outpacing the broader Dow Jones Industrial Average’s ($DOWI) 7.3% rise during the same time frame.
In the longer term, ADI has gained 16.3% on YTD, exceeding $DOWI’s 6.7% rise. Moreover, over the last 52 weeks, shares of Analog Devices have climbed 12.8%, while the Dow Jones Industrial Average has returned 11.4%.
Indicating an uptrend, ADI has been trading above its 50-day moving average since the end of August and has been trading over the 200-day moving average since early June.
On Aug. 20, ADI shares jumped 6.3% after the company released its third-quarter earnings. Its revenue rose 25% year-over-year to $2.88 billion, and adjusted EPS climbed 30% to $2.05, both above expectations. Growth was driven by robust demand in the industrial and automotive segments. Gross margin came in at 62.1%, while operational cash flow reached $4.2 billion, enabling $1.6 billion in shareholder returns.
In contrast, rival Intel Corporation (INTC) fell behind ADI. INTC shares have gained 26.2% in the last 52 weeks and 22.1% on a YTD basis.
Analysts are fairly optimistic about ADI's prospects, with 33 analysts assigning it a consensus "Moderate Buy" rating. The mean price target of $275.43 implies a potential upswing of 11.5% from the prevailing price levels.
On the date of publication, Kritika Sarmah 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.
