Analog Devices Gets Blizzard Of Price-Target Hikes

Analog Devices (ADI) stock scored a flurry of price-target increases from Wall Street analysts after its upbeat earnings report on Wednesday. ADI stock is trading in record high territory.

At least 20 analysts hiked their price targets on ADI stock after the chipmaker’s beat-and-raise fiscal first-quarter report.

				    ↑
					X

This video file cannot be played.(Error Code: 102630)

								MarketSurge 2.0: Here's What To Expect From The New IBD Charting Platform
							

							

								See All Videos
							

						

					
					
						NOW PLAYING
						MarketSurge 2.0: Here's What To Expect From The New IBD Charting Platform

The Wilmington, Mass.-based company earned an adjusted $2.46 a share on sales of $3.16 billion in the quarter ended Jan. 31. Analysts surveyed by FactSet had expected earnings of $2.31 a share on sales of $3.12 billion. On a year-over-year basis, earnings jumped 51% while sales rose 30%.

Fiscal Q1 marked its fourth consecutive quarter of accelerating sales growth. Earnings growth accelerated for the second straight quarter.

For the current quarter, Analog Devices forecast adjusted earnings of $2.88 a share on sales of $3.5 billion. That would translate to year-over-year growth of 56% in earnings and 32% in revenue. Wall Street had been modeling earnings of $2.46 a share on sales of $3.24 billion in the fiscal second quarter.

AI Data Centers Are Key Driver

Analog Devices credited its outperformance in part to strength in its data center segment.

On a conference call with analysts, Chief Executive Vincent Roche said ADI’s analog and mixed signal chips, as well as products for power management and optical networking, “are critical” for the increasing technical demands of data centers running artificial intelligence applications.

Fiscal 2026 is shaping up as a “banner year” for Analog Devices, Susquehanna analyst Christopher Rolland said in a client note. The company is benefiting from a “broad-based cyclical upturn and continued tailwinds from AI,” he said in a client note.

Rolland reiterated his positive rating on ADI stock and raised his price target to 400 from 360.

Analyst Moves Off The Sidelines

On the stock market today, ADI stock slipped a fraction to 345.30. On Wednesday, it notched a record high of 355.36.

Needham analyst Quinn Bolton upgraded ADI stock to buy from hold and set a price target of 400.

“As operating results continue to improve, we can no longer justify remaining on the sidelines,” Bolton said in a report. “Though the stock has risen 44.7% since fiscal Q4 2025 earnings, vs. 2.6% for the S&P 500 over the same period, we believe several factors should drive continued upside to earnings estimates and the share price.”

Those factors include indications that customers are ordering in line with consumption trends and haven’t begun restocking, he said. Also, sales tied to AI data centers “show no signs of slowing down.”

Plus, Analog Devices is seeing bookings strength in automated test equipment and aerospace and defense, Bolton said.

ADI Stock Is On Three IBD Lists

In addition, Analog Devices raised its quarterly dividend by 11% to $1.10 a share, marking 22 consecutive years of increases.

ADI stock has climbed steadily since breaking out of a flat base at a buy point of 258.13 on Nov. 26, according to MarketSurge charts.

Further, ADI stock is on three IBD lists: Big Cap 20, Stock Spotlight and Tech Leaders.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

YOU MAY ALSO LIKE:

Nvidia Announces AI Partnership With Meta Platforms

Tech Leader Camtek Rises After Mixed Q4 Report, Modest Outlook

Unsure How To Invest In Stocks In This Environment? Start Here

Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens

Join IBD Live For Stock Ideas Each Morning Before The Open