ADI vs NXPI: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
ADI and NXPI are similarly sized, but NXPI trades noticeably cheaper on forward earnings (12.61x vs 24.39x): the market is paying up for ADI's profile and pricing NXPI more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
ADI vs NXPI: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ADI | NXPI | What it tells you |
|---|---|---|---|
| Forward P/E | 24.39 | 12.61 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 54.67 | 45.65 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.19 | 1.80 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 66% of range | 29% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 5.30 | 5.07 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: NXPI is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ADI and NXPI affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADI and NXPI share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADI and NXPI exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Analog Devices (ADI) do?
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.
What does NXP Semiconductors (NXPI) do?
NXP Semiconductors N.V. is one of the world's largest suppliers of chips for automotive, industrial, and connected-device applications. It reports across four end markets: Automotive (its largest, around $1.78 billion in Q1 2026), Industrial & IoT, Communication Infrastructure, and Mobile. Rather than chasing the leading-edge logic nodes that dominate AI-datacenter headlines, NXP specializes in the analog, mixed-signal, microcontroller, connectivity, and security chips that go into cars, factory equipment, payment terminals, and smart devices. These parts are often designed in years ahead of production and are hard to swap out once locked in, which gives NXP durable, sticky customer relationships.
ADI vs NXPI: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ADI drivers: Industrial Automation and the Intelligent Edge; AI Infrastructure and Automated Test Equipment.
- NXPI drivers: Rising chip content in cars; Recovery across all four end markets.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: 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. For NXPI, the dominant risk is cyclicality and automotive concentration: with autos the largest end market, a downturn in vehicle production, a slowdown in EV adoption, or another inventory correction can compress NXP's revenue and margins quickly, as the 2024 to 2025 stretch showed.
ADI or NXPI: which should you pick?
ADI vs NXPI: the full fundamentals
ADI. 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.
NXPI. Figures are approximate, tied to the asOf date, and can move with the semiconductor cycle, so verify live numbers before acting. NXP tends to trade at a valuation between deep-cyclical commodity chipmakers and premium AI-datacenter names, reflecting its steady content-growth story balanced against auto-cycle sensitivity. As with any cyclical, a modest-looking multiple on recovering earnings can understate the risk if the cycle rolls over, so where auto and industrial demand sits matters more than the headline P/E.
Headline figures (approximate, June 27, 2026 (based on fiscal year 2025 results reported November 25, 2025, and fiscal Q1 2026 results reported February 18, 2026)): ADI shows 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%; NXPI shows revenue (recent quarter) ~$3.18 billion in Q1 2026, up ~12% year over year, with Q2 guided to roughly $3.45 billion, revenue mix Automotive is the largest end market (~$1.78 billion in Q1 2026), followed by Industrial & IoT, Mobile, and Communication Infrastructure, non-gaap eps (recent quarter) ~$3.05 in Q1 2026, ahead of guidance, with Q2 guided near ~$3.50 at the midpoint, gross margin Non-GAAP gross margin in the high-50s percent range (around 58%).
The bottom line: ADI vs NXPI
ADI and NXPI are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADI and NXPI exposure against your real portfolio. It is not an investment adviser.
Wondering how ADI or NXPI fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Analog Devices with AI
Connect the broker you already use and ask Walnut's AI how ADI fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ADI and NXPI?
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Analog Devices designs, manufactures, and markets integrated circuits, software, and subsystem products that convert real-world analog signals into digital data and back again. NXP Semiconductors N.V. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ADI or NXPI the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ADI or NXPI?
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On forward P/E (as of August 2026), ADI trades at 24.39x and NXPI at 12.61x, so NXPI is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ADI and NXPI?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ADI vs NXPI?
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ADI: 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. NXPI: The dominant risk is cyclicality and automotive concentration: with autos the largest end market, a downturn in vehicle production, a slowdown in EV adoption, or another inventory correction can compress NXP's revenue and margins quickly, as the 2024 to 2025 stretch showed. The company is also exposed to China, both as a large market and as a source of rising domestic competition and content-localization mandates, plus tariff and export-control uncertainty that can disrupt supply chains and demand. Semiconductors are capital-intensive and competitive, so NXP faces well-funded rivals like Infineon, STMicroelectronics, Texas Instruments, and Renesas in overlapping markets. Acquisitions add integration and financing risk, and the stock can move sharply on macro, auto-cycle, and trade-policy news outside the company's control.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ADI or NXPI; figures are approximate and dated (as of August 2026). Verify current data before investing.