Analog Devices, Inc. research snapshot
ADI AI stock analysis reads Analog Devices as a high-margin analog, mixed-signal, power, sensor, and data converter company with record fiscal Q2 2026 results, an AI data center power growth option, and the Empower Semiconductor acquisition now closed. The stock pulled back from a $445.91 high to a $367.41 close on July 31, 2026, which lowered the market capitalization to about $178.96 billion at the August 2, 2026 cutoff. The page uses a scenario framework, not a certain price prediction, and the main question is whether record growth and AI power exposure can justify a valuation near 55x trailing earnings through the next semiconductor cycle. This is informational research and not investment advice.
Current price
$367.41
Market cap
$178.96 billion
AI score
68 / 100
Rating
High-quality analog compounder with AI power option, pullback underway
Trend status
Long-term uptrend intact, short-term pullback below the 50-day moving average
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | ADI sells high-performance analog, mixed-signal, power, sensor, and data converter chips into industrial, automotive, communications, and consumer markets. | High |
| Moat | The moat comes from engineering depth, long product life cycles, customer qualification costs, embedded design wins, scale after Maxim, trusted signal-chain IP, and pricing power in newer products. | High |
| Management | Vincent Roche and Richard Puccio are executing a strong demand cycle with record Q2 revenue and EPS, disciplined capital returns, and a closed Empower acquisition that adds AI power capability. | Medium-high |
| Financial trend | Fiscal Q2 2026 revenue rose 37% year over year to a record $3.62 billion, gross margin reached 73%, operating margin 49%, and trailing twelve-month free cash flow was about $4.6 billion. | High |
| Valuation | At $367.41, trailing PE was about 54.7x and forward PE near 26x, so valuation depends on continued growth and high margins rather than on a cheap entry price. | Medium |
| Technical trend | The stock is above its 200-day moving average but below the 20-day and 50-day moving averages after pulling back from the $445.91 high, with 14-day RSI near 42.6. | Medium |
| Risk level | The thesis can fail if industrial or automotive orders roll over, data center power revenue disappoints, Empower integration slips, valuation multiples compress, or geopolitical and tariff risk rises. | Medium-high |
| AI confidence | High for filing-backed data, quote snapshots, and valuation math. Lower for forward returns because analog cycles, AI infrastructure demand, and multiples can change quickly. | High data confidence |
| Investment certainty | Medium certainty because ADI is a strong analog franchise, but the current price leaves limited room for a cycle or multiple disappointment. | Medium |
ADI AI stock forecast
The ADI AI stock forecast is scenario-based around the $367.41 cutoff price. The bull path requires sustained industrial, automotive, and data center growth plus successful Empower integration; the base path assumes continued high-margin execution with less valuation support; the bear path assumes cyclical and multiple pressure arrive together. A three-scenario model using the fiscal 2026 consensus adjusted EPS of $12.43 produced a bull area near $653, a base area near $430, and a bear area near $245 over three years.
$520 to $660
More likely if fiscal 2026 revenue compounds above the $14.8 billion consensus, data center and ATE stay on steep growth curves, automotive content keeps gaining, Empower adds meaningful 2027 power revenue, and the stock reclaims the $379 to $398 moving-average zone on volume.
$395 to $460
More likely if ADI delivers the guided fiscal Q3 2026 revenue near $3.9 billion, holds gross margin near 72% to 73%, and investors keep the stock near an 26x forward multiple. The financial_rigor.py base scenario using 10% EPS growth and a 26x exit PE produced about $430 after three years.
$210 to $300
More likely if industrial or automotive demand fades, data center growth slows, Empower benefits stay small longer than guided, valuation multiples compress toward historical bands, or a close below the 200-day moving average near $331 extends the correction.
ADI AI technical analysis
ADI AI technical analysis starts from the $367.41 July 31, 2026 close. The stock sits between support from the rising 200-day moving average near $331 and resistance from the 50-day moving average near $398 and the 52-week high of $445.91. Because this static page does not fetch request-time chart data, moving averages, volume, and momentum should be confirmed in a live charting tool before use.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $367.41 | StockAnalysis.com and Yahoo Finance both reported the July 31, 2026 close used for the August 2, 2026 cutoff. |
| Near support | $362.86 to $365.03 | The July 31 day low was $362.86 and the 5-day moving average was near $365.03, forming a near-term support band. |
| Next support | $340 to $355 | A planning zone below the near support before the 200-day moving average becomes the major support reference. |
| Near resistance | $378.96 to $379.37 | The 100-day moving average near $378.96 and the 20-day moving average near $379.37 cap the immediate upside. |
| Next resistance | $397.59 | The 50-day moving average near $397.59 is the next overhead zone before the $445.91 high. |
| 50-day moving average | $397.59 | Barchart and StockAnalysis.com reported the same 50-day moving average snapshot near $397.59. |
| 200-day moving average | $331.24 | Barchart and StockAnalysis.com reported the 200-day trend line near $331.24, below the current price. |
| Momentum | RSI near 42.6 | 14-day RSI was near 42.57 with 14-day ADX near 23.6 and -DI above +DI, so short-term momentum is weak. |
| Volume | About 3.9 million average shares | Barchart and StockAnalysis.com listed 20-day average volume near 3.9 million shares, useful for checking reversal quality. |
| Volatility | Elevated | Barchart reported 14-day historic volatility near 31.7% and an average daily range near 3.2%, so swings around earnings are large. |
| Invalidation | Close below $362.86 | A decisive close below the near support band would weaken the short-term setup; a close below the 200-day moving average would threaten the long-term uptrend. |
ADI AI trading strategy
The ADI AI trading strategy is a rules-based research framework. It is not personalized advice and should be paired with position sizing, stop levels, live chart checks, and fresh company filings.
Wait for ADI to reclaim the $379 to $398 moving-average zone on volume, then look for a test of the $445.91 high with the 200-day trend line still rising.
A close below $362.86 or a failed reclaim of the 50-day moving average should invalidate the setup.
If ADI extends the pullback toward the $340 to $355 zone or the 200-day moving average without a business thesis break, compare the price with fiscal Q3 revenue guidance, data center orders, automotive demand, and Empower integration news.
Do not average down without a predefined maximum loss and a fresh review of the still-elevated valuation.
Track Industrial and Automotive revenue mix, data center share inside Communications, adjusted gross margin near 73%, free cash flow return, net leverage, buybacks, and Empower and IVR integration milestones.
Reduce confidence when price strength relies on AI power headlines without matching revenue, margin, or cash flow evidence, and respect the August 19, 2026 earnings date.
Investment research summary
ADI sells precision chips that help customers sense, measure, convert, power, and connect real-world signals in products where reliability, energy efficiency, and design support matter.
ADI benefits from sticky design wins, long 15- to 20-year industrial product life cycles, field application expertise, broad catalog scale, Maxim integration, and analog IP that is hard to replace once qualified.
The stock can fail if investors overpay for a cyclical peak, industrial and automotive customers destock, data center growth decelerates, Empower benefits stay small, or AI power exposure proves smaller than the narrative.
Management delivered record Q2 2026 revenue and EPS, guided fiscal Q3 revenue near $3.9 billion, closed the Empower acquisition on July 7, 2026, and keeps a long-term target of returning 100% of free cash flow.
ADI sits in long-running electronics trends: automation and robotics, electrification and energy, software-defined vehicles, data center power density, advanced connectivity, and intelligent edge sensing.
The current price embeds premium expectations for growth and margins. Margin of safety improves if earnings grow faster than the multiple falls, or if the stock resets toward a lower valuation band after the pullback.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| ADI price | $367.41 close on July 31, 2026 | StockAnalysis.com and Yahoo Finance quote snapshots | July 31, 2026 |
| Market capitalization | About $178.96 billion, verified as $367.41 x 487.09 million shares with 0.00% deviation from the reported figure | financial_rigor.py market cap verification | July 31, 2026 |
| Shares outstanding | 487.09 million shares, down 1.12% year over year | StockAnalysis.com share statistics | August 1, 2026 |
| Fiscal Q2 2026 revenue | $3.62 billion, up 15% sequentially and 37% year over year | ADI Q2 2026 earnings call and Yahoo Finance earnings trend | May 20, 2026 |
| Fiscal Q2 2026 segment mix | Industrial 50%, Automotive 24%, Communications 15%, Consumer 11%; data center over 75% of communications revenue | ADI Q2 2026 earnings call transcript | May 20, 2026 |
| Fiscal Q2 2026 margin and EPS | Gross margin 73%, operating margin 49%, adjusted EPS $3.09 up 67% year over year | ADI Q2 2026 earnings call transcript | May 20, 2026 |
| Fiscal Q3 2026 guidance | Revenue of $3.9 billion plus or minus $100 million, operating margin 49% plus or minus 100 basis points, adjusted EPS $3.30 plus or minus $0.15 | ADI Q2 2026 earnings call transcript | May 20, 2026 |
| Empower Semiconductor acquisition | Completed July 7, 2026; adds IVR and silicon capacitor technology for AI data center power delivery | ADI press release via PRNewswire | July 7, 2026 |
| TTM financials | $12.74 billion revenue, $3.31 billion net income, $6.72 EPS, $4.57 billion free cash flow | StockAnalysis.com financials and statistics | August 1, 2026 |
| Segment revenue mix, TTM | Industrial $6.01B, Automotive $3.39B, Communications $1.77B, Consumer $1.58B | StockAnalysis.com metrics segment breakdown | July 28, 2026 |
| Cash and total debt | $3.439 billion cash and short-term investments, $8.685 billion total debt as of May 2, 2026, net cash of about -$5.25 billion | StockAnalysis.com balance sheet | July 28, 2026 |
| Net cash per share | -$10.77 per share, verified with the exact calculator | financial_rigor.py exact calculator | August 1, 2026 |
| Valuation check | 54.70x trailing PE, 26.23x forward PE, 5.30x book value, 39.21x free cash flow, 1.20% dividend yield | financial_rigor.py valuation verification and StockAnalysis.com | August 1, 2026 |
| Fiscal 2025 results | $11.02 billion revenue up 16.9%, net income $2.27 billion up 38.7% | ADI FY2025 results and StockAnalysis.com cross-check | August 1, 2026 |
| Analyst consensus | Buy with an average target of $457.73 across 33 analysts, ranging from $365 to $550 | StockAnalysis.com forecast and analyst ratings | July 23, 2026 |
| Fiscal 2026 consensus estimates | Revenue near $14.81 billion, adjusted EPS near $12.43, with fiscal 2027 revenue near $17.16 billion | StockAnalysis.com financial forecast | July 23, 2026 |
| Technical snapshot | 20-day SMA near $379.37, 50-day SMA near $397.59, 200-day SMA near $331.24, 14-day RSI near 42.57 | Barchart and StockAnalysis.com technical snapshots | July 31, 2026 |
This ADI AI stock analysis page is an informational tool only. It is not investment advice, a recommendation, or a promise of future returns. Forecast scenarios are based on available data as of August 2, 2026, may be incomplete, and can be wrong if new filings, market prices, customer orders, semiconductor demand, acquisition outcomes, rates, or macro conditions change.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
