ADI
Wall Street just found a new favorite
Analog Devices is having one of those moments where the numbers are big enough to make everyone sit up a little straighter. The company posted its first-ever $4.02 billion quarter, and suddenly the analyst crowd is treating ADI like the semis equivalent of a sleeper hit that finally got the headline slot.
AI is doing the heavy lifting
JPMorgan says ADI’s data center business is now doing a lot more than just showing up — it’s driving the story. The firm says AI-related data center revenue could nearly double in fiscal 2026, with long-term design wins and a shift toward 800-volt architectures adding even more fuel.
TD Cowen is on the same train. It kept a Buy rating in place and pointed to accelerating AI demand, a still-young cyclical recovery, and margins that could keep drifting higher if pricing sticks.
The part investors should care about
The not-so-secret sauce here is mix. ADI’s communications revenue jumped 84% year over year, industrial climbed 53%, and automotive rose 16%. Management also guided fiscal Q4 revenue to $4.3 billion, above expectations, while gross margin is pegged around 74%.
That’s the kind of combo investors love: bigger sales, better margins, and a business mix that’s leaning harder into the hottest part of the semiconductor market. Big picture: if AI infrastructure keeps spending like it’s late-stage holiday season, ADI may have more room to run than Wall Street thought.