ADI Stock Analysis — Analog Devices
Sector: Semiconductors
AI Verdict
ADI trades at 29.4x next year's earnings while analysts expect near-doubling EPS—this is cheap for the growth on offer if their design-in moat keeps competitors at bay.
Competitive Moat
Analog Devices specializes in high-performance analog, mixed-signal, and digital signal processing chips that are deeply embedded in industrial, automotive, and communications infrastructure, making them hard to displace once designed in. Their broad portfolio and long product cycles create switching costs and durable relationships with OEMs.
Summary
Analog Devices is on watch for a projected 95.0% jump in earnings next year, far outpacing sector norms.
Where It Stands
ADI has returned 58.78% over the past year, trades at 29.4x forward earnings (above the 25x sector median), and its RSI of 41.0 signals cooling momentum after a strong run.
Key Metrics
- RSI: 41 — Neutral
- Trailing P/E: 57.3x
- Forward P/E: 29.4x
- PEG Ratio: 0.61
- Earnings Growth: +1.0%
- Revenue Growth: +0.3%
- Market Cap: $187.7B
- Dividend Yield: 0.01%
- 1-Year Return: 58.78%
- 52-Week High: $445.91
- 52-Week Low: $218.37
Analyst Consensus
32 Buy · 6 Hold · 0 Sell (38 analysts)
Bull Case
With forward EPS growth expected at 95.0%, the 29.4x forward P/E is cheap for the level of earnings acceleration analysts predict.
Bear Case
If the forward P/E reverts to the 25x sector median, the stock could see a 15% valuation drop even if earnings deliver as forecast.
Catalyst to Watch
Watch the next quarterly earnings for confirmation that EPS is tracking toward the 95.0% growth consensus—any miss could trigger a sharp rerating.