BN · rank #15 · 2026-10-22
ADI
NASDAQ · $196.71B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.17 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +21.6% |
| 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). | +1.6% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.58 |
| 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. | +16.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $196.71B |
The AI research card
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Summary
Analog Devices is a large-cap analog semiconductor company supplying precision sensing, signal conversion, power management, and edge-AI processing to industrial, automotive, communications, and data-center customers, with record Q3 2026 revenue of $4.02 billion driven by 53% industrial and 84% communications growth.
Rationale
ADI's bottleneck-solver thesis is reinforced by genuine physical-world signal-chain irreplaceability—customers cannot easily substitute its analog/mixed-signal IP—and the Alif acquisition extends that moat into AI-native edge inference, while a 0.58 forward PEG against 21.6% revenue growth and 31.4% net margins suggests the market has not fully priced the acceleration.
Material risks
- 1Technology displacement via customer internalization or competing integrated solutions is a live risk—hyperscalers and automotive OEMs are actively building more in-house analog and power capability, which could erode ADI's design-win density over a 3–5 year horizon.
- 2The $1.35B Alif acquisition adds $9.1B of existing debt against $2.2B cash, and a Hart-Scott-Rodino delay or failed integration of an unproven AI-MCU platform into ADI's sales motion could dilute the edge-AI thesis that justifies the premium multiple.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.