Analog Devices, Inc. (ADI) Stock Price & How to Invest

Analog Devices designs, manufactures, and markets integrated circuits, software, and subsystem products that convert real-world analog signals into digital data and back again. Its core product families include data converters, amplifiers, power management ICs, radio frequency and microwave chips, and MEMS-based sensors such as accelerometers and gyroscopes. ADI sells into four end markets: Industrial (the largest, roughly half of revenue), Automotive, Communications, and Consumer. Revenue is generated primarily through direct sales to original equipment manufacturers and through a global distribution network spanning North and South America, Europe, Japan, China, and the rest of Asia. The company's hybrid manufacturing model combines owned fabs with foundry partnerships, giving it flexibility in capacity and cost management.

Analog Devices was founded in 1965 and is headquartered in Wilmington, Massachusetts. Under CEO and Chair Vincent Roche, who has led the company since 2013, ADI executed three major acquisitions: Hittite Microwave in 2014, Linear Technology in 2017, and Maxim Integrated in 2022, the last of which was a roughly $21 billion all-stock deal that vaulted the company to the second-largest position in the global analog semiconductor market. Roche joined ADI in 1988 and has overseen revenue growth from roughly $2.7 billion in fiscal 2012 to over $11 billion in fiscal 2025. ADI has raised its quarterly dividend for 22 consecutive years, most recently to $1.10 per share in February 2026, and has committed to returning 100% of free cash flow to shareholders over the long term.

Analog semiconductors are cyclical, and a slowdown in industrial capital spending or a prolonged pause in automotive orders can deflate revenue quickly, as seen during the fiscal 2024 trough. ADI's automotive segment is under near-term pressure from tariff-related demand pull-ins unwinding, and China represents a meaningful share of automotive revenue, making geopolitical escalation or localization policies a specific exposure. The trailing P/E ratio is elevated relative to ADI's own 10-year historical average, meaning that any disappointment in revenue growth or margin guidance could lead to a multiple compression that punishes shareholders even if the underlying business remains healthy. Additionally, Chinese domestic analog vendors such as SG Micro and Will Semi are intensifying price competition in mainstream segments within China, a market ADI cannot easily afford to cede.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Analog Devices, Inc.'s investor relations page or your broker.

• Revenue (Fiscal Year 2025): ~$11.0 billion
• Revenue (Fiscal Q1 2026): ~$3.16 billion
• Free Cash Flow (Fiscal Year 2025): ~$4.3 billion (~39% of revenue)
• Gross Margin (TTM): ~62% to 63%
• Trailing P/E Ratio: ~60x to 70x (multiple sources, range reflects measurement date)
• Forward P/E Ratio: ~32x (based on consensus FY2026 estimates)
• EV/EBITDA: ~32x
• Market Capitalization: ~$158 billion

ADI's trailing P/E of roughly 60 to 70x is above its own 10-year historical average of approximately 38x, reflecting the market's pricing of a sustained earnings recovery and secular growth from industrial automation and AI infrastructure. The forward P/E of approximately 32x is more moderate and assumes continued double-digit earnings growth into fiscal 2026. Free cash flow conversion at 39% of revenue is well above the semiconductor sector average, providing a tangible foundation for the valuation premium, though it does not eliminate the risk of multiple compression if growth expectations are not met.

If you want ADI exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

There are three common ways to get ADI exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (SOXX), which spreads the position across many companies. Or build it into a focused thematic basket, so ADI sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where ADI fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

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ADI is a high-margin analog semiconductor franchise in the middle of a cyclical recovery, with fiscal 2025 revenue of $11.0 billion growing 17% year over year and free cash flow conversion among the best in the semiconductor sector. If you believe that the long-duration buildout of industrial automation, electric vehicles, and AI-driven infrastructure sustains demand for precision analog signal processing, the question becomes sizing and overlap with other semiconductor holdings, not timing; the risk is that analog is notoriously cyclical, and a pause in industrial capital expenditure or automotive order softness (already visible in early fiscal 2026) could pressure near-term results and compress a valuation that is already elevated relative to ADI's own historical averages.

Whether ADI is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is ADI a buy?, and where the stock could go from here in the ADI stock forecast.

For income investors, whether ADI pays a dividend and how the payout looks is covered in does ADI pay a dividend?