BN · rank #17 · 2026-09-04
ADI
NASDAQ · $172.75B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.31 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +20.5% |
| Forward net margin Consensus forward net margin. | +31.4% |
| Net margin TTM Trailing twelve month net margin. | +29.8% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.7% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.53 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.85× |
| Analyst upside Spread between the consensus 12m target and the current price. | +31.9% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $172.75B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Analog Devices is a high-performance analog, mixed-signal, and power-management IC leader serving industrial, automotive, and AI data center markets with dominant share in data converters, automotive BMS, and GMSL connectivity.
Rationale
ADI's record Q3 FY2026 revenue of $4.02B (+40% YoY), 72.5% gross margins, 50% adjusted operating margins, and the Empower Semiconductor acquisition directly reinforce the bottleneck-solver thesis — ADI owns irreplaceable signal-chain and grid-to-core power positions that hyperscalers and OEMs cannot easily bypass or replicate in-house.
Material risks
- 1Digital SoC integration of analog/power functions by hyperscalers or AI accelerator vendors (e.g., custom silicon with embedded IVRs) could commoditize ADI's converter and power-delivery franchise, the precise moat the bottleneck-solver thesis depends on.
- 2Empower Semiconductor integration execution risk is real and near-term — scaling novel 800V IVR architectures into hyperscale data centers against entrenched power-delivery competitors while absorbing a $1.5B all-cash deal could pressure FCF and distract management during a critical AI capex window.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.