BN · rank #14 · 2026-09-07
ADI
NASDAQ · $175.53B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.32 |
|---|---|
| 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. | +29.8% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $175.53B |
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 125,000 customers across industrial, automotive, and AI data center markets with dominant positions in data converters, automotive BMS, and GMSL connectivity.
Rationale
ADI's record $4.02B Q3 revenue (+40% YoY), 72.5% gross margins, ~50% adjusted operating margin, and the Empower Semiconductor acquisition directly reinforce the bottleneck-solver thesis — ADI owns the signal chain and grid-to-core power delivery chokepoints that AI data center architectures cannot bypass.
Material risks
- 1Technology displacement risk is real and thesis-specific — if hyperscalers or AI accelerator vendors (e.g., NVIDIA, Broadcom) integrate analog/power functions directly into digital SoCs, ADI's converter and power-management franchise faces structural margin erosion despite current leadership.
- 2Empower Semiconductor integration execution risk is elevated — scaling novel integrated voltage-regulator architectures into 800V AI data center deployments against entrenched power-delivery competitors (Monolithic Power, Infineon) could disappoint the incremental revenue thesis embedded in the 20.5% forward growth estimate.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.