Wilmington, Massachusetts-based Analog Devices, Inc. (ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. Valued at $114.1 billion by market cap, the company's products are used in communications, computer, industrial, instrumentation, military, aerospace, automotive, and high-performance consumer electronics applications.
Shares of this global semiconductor leader have underperformed the broader market over the past year. ADI has gained 2.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14%. In 2025, ADI’s stock rose 9.2%, compared to the SPX’s 16.2% rise on a YTD basis.
Narrowing the focus, ADI’s underperformance is also apparent compared to the SPDR S&P Semiconductor ETF (XSD). The exchange-traded fund has gained about 32.9% over the past year. Moreover, the ETF’s 34.5% gains on a YTD basis outshine the stock’s high single-digit returns over the same time frame.
On Aug. 20, ADI shares closed up more than 6% after reporting its Q3 results. Its adjusted EPS of $2.05 exceeded Wall Street expectations of $1.93. The company’s revenue was $2.9 billion, beating Wall Street forecasts of $2.8 billion. For Q4, ADI expects its adjusted EPS to range from $2.12 to $2.32, and revenue in the range of $2.9 billion to $3.1 billion.
For the current fiscal year, ended in October, analysts expect ADI’s EPS to grow 21.5% to $7.75 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 34 analysts covering ADI stock, the consensus is a “Moderate Buy.” That’s based on 22 “Strong Buy” ratings, three “Moderate Buys,” and nine “Holds.”
This configuration is more bullish than a month ago, with 21 analysts suggesting a “Strong Buy.”
On Nov. 4, BNP Paribas Exane analyst David O’Connor initiated coverage on ADI with an “Outperform” rating and $300 price target, implying a potential upside of 29.3% from current levels.
The mean price target of $277.31 represents a 19.5% premium to ADI’s current price levels. The Street-high price target of $310 suggests a notable upside potential of 33.6%.
On the date of publication, Neha Panjwani 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.
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