Why Analog Devices (ADI) Stock Is Trading Lower Today

What Happened?

Shares of manufacturer of analog chips Analog Devices (NASDAQ:ADI) fell 3.2% in the morning session after a weak profit forecast from rival analog chipmaker Texas Instruments (TXN) sent ripples across the semiconductor sector. Texas Instruments, a major player in the analog chip space, announced it expected third-quarter earnings to be below analyst consensus at the midpoint of its guidance range. The company's soft forecast immediately weighed on investor sentiment for the entire sector, dragging down shares of competitors, including Analog Devices. The negative outlook from a key industry bellwether sparked concerns about a broader slowdown in demand, particularly from the automotive and industrial markets.

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What Is The Market Telling Us

Analog Devices’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Analog Devices is up 8.6% since the beginning of the year, and at $229.62 per share, it is trading close to its 52-week high of $245.68 from July 2025. Investors who bought $1,000 worth of Analog Devices’s shares 5 years ago would now be looking at an investment worth $2,051.

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