Key statistics

Is ADI a good stock to buy in 2026?

Considering Analog Devices, Inc.’s (ADI) current P/E ratio of 62.99x significantly exceeds the Semiconductors sector average of 46.1x, and its DCF fair value of $244.38 suggests it is overvalued by nearly 30% against its current price, investors should approach with caution. However, the strong consensus among 54 analysts, with 79.6% rating ADI stock as a ‘Buy’, indicates underlying confidence in the company’s long-term prospects. While ADI demonstrates robust growth and profitability, its premium valuation metrics warrant a deeper dive for potential investors.

2026 ADI price scenarios

Based on analyst consensus of $374.42 from 54 analysts. Not a prediction by Alert Invest.

About Analog Devices, Inc. (ADI)

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automot

Analog Devices, Inc. (ADI) is led by CEO Vincent T. Roche, overseeing a global workforce of approximately 24,000 employees. The company stands out for its deep expertise in high-performance analog, mixed-signal, and digital signal processing technologies, crucial for diverse applications from industrial automation to automotive systems. Its distinctive strengths lie in its extensive patent portfolio, rigorous product development, and strong relationships with a broad customer base, positioning it as a foundational supplier in the semiconductor industry.

ADI competitive moat and business analysis

Analog Devices, Inc. exhibits a robust competitive advantage, underscored by its impressive net margin of 23.02%. This strong profitability metric reflects effective cost management and pricing power within its specialized market segments. While Return on Equity (ROE) and Return on Invested Capital (ROIC) data are not explicitly available, the healthy net margin suggests efficient capital utilization and a strong core business. ADI’s ability to maintain high margins in the competitive semiconductor space highlights its proprietary technology and entrenched customer relationships.

ADI’s business is diversified across several key end markets, with a focus on industrial, automotive, communications, and consumer segments. Although detailed segment-level revenue data for fiscal year 2024 is not provided in a granular format, the company typically generates a significant portion of its revenue from its industrial and automotive solutions, reflecting the critical need for high-performance analog components in these evolving sectors. Geographically, ADI maintains a global presence, ensuring broad market penetration and mitigating regional economic fluctuations. Key markets span North America, Europe, and Asia, with the latter often being a strong growth driver for semiconductor demand.

The company’s competitive moat appears to be strengthening, evidenced by its significant year-over-year revenue growth of 16.9%. This expansion suggests increasing demand for ADI’s advanced semiconductor solutions and effective execution in market capture. While no specific transcript quote is available to detail strategic initiatives, this growth rate in a dynamic sector like Semiconductors indicates successful innovation and market adaptation. Analog Devices, Inc. continuously invests in R&D to maintain its technological edge, which is vital for long-term moat sustainability against new entrants and evolving customer needs, bolstering the case for is ADI a good stock.

When evaluating ADI stock against its peers, it’s essential to consider its distinct focus areas and operational efficiency. For instance, comparing ADI vs CDNS might highlight differences in design software versus hardware components. Similarly, a look at ADI vs DELL showcases a contrast between a pure-play semiconductor manufacturer and a broader technology solutions provider. Lastly, a comparison like ADI vs KLAC would pit ADI’s integrated circuits against KLA Corporation’s process control and yield management solutions, underscoring diverse niches within the technology sector. Each comparison reveals unique competitive strengths and market positioning, critical for a comprehensive ADI valuation.

Analog Devices, Inc. analyst rating

Based on 54 analysts. 79.6% rate ADI Buy or Strong Buy.

A 79.6% ‘Buy’ rating among 54 analysts is generally considered a strong endorsement in the Technology sector, particularly for a mature yet innovative company like ADI. It suggests high conviction in the company’s future performance and market position, especially given the cyclical nature of the semiconductor industry.

Is ADI undervalued or overvalued?

A crucial aspect of ADI valuation is its Price-to-Earnings (P/E) ratio, currently standing at 62.99x. This is notably higher than the Semiconductors sector average of 46.1x, indicating that investors are paying a significant premium for ADI stock compared to its industry peers. This premium often reflects expectations of higher future growth or a stronger competitive position, but it also suggests the stock may be richly valued at its current price.

Further reinforcing this perspective, our Discounted Cash Flow (DCF) analysis estimates ADI’s fair value at $244.38. This figure is approximately 29.9% below the current trading price, suggesting that ADI stock is currently overvalued based on its intrinsic cash-generating potential. Value investors might find the current ADI valuation less attractive, preferring a more significant margin of safety or a lower P/E relative to sector averages.

ADI financial health & key metrics

For value investors assessing ADI stock, a mixed picture emerges. While its excellent net margin of 23.02% and strong revenue growth of 16.9% highlight operational efficiency and market demand, the ADI valuation metrics suggest caution. A P/E ratio of 62.99x, significantly above the sector average, alongside a DCF fair value indicating overvaluation, points to a premium market perception. However, the low debt-to-equity ratio of 0.26x underscores a strong balance sheet, which is a key consideration for long-term stability. The absence of readily available ROE/ROIC data suggests reliance on other profitability metrics, but the overall financial health remains sound, despite the current high valuation.

Analog Devices, Inc. earnings history & next report

Analog Devices, Inc. reported EPS of $2.46, beating estimates by 6.49%. Next earnings: 2026-05-28 with EPS estimate of $2.83.

Investors will be keenly watching Analog Devices, Inc.’s next earnings report on 2026-05-28. The estimated EPS of $2.83 provides a benchmark, but attention will also be on forward guidance for revenue and profitability, especially given the broader semiconductor market dynamics. Key areas to monitor include commentary on demand across its industrial and automotive segments, any updates on supply chain conditions, and insights into new product pipelines that could drive future growth for ADI stock.

ADI daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

ADI insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent ADI analyst rating changes

Analog Devices, Inc. stock news today

How does ADI compare to its peers?

For investors considering the Technology sector, understanding how ADI compares to its industry counterparts is crucial for a well-rounded portfolio strategy. Analog Devices, Inc. operates within a competitive landscape, and examining its valuation and growth alongside key peers can provide valuable insights into its relative attractiveness as an investment.

FAQ — Analog Devices, Inc. (ADI) stock