For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Analog Devices (ADI) ten years ago? It may not have been easy to hold on to ADI for all that time, but if you did, how much would your investment be worth today?
Analog Devices' Business In-Depth
With that in mind, let's take a look at Analog Devices' main business drivers.
Analog Devices, Inc. is headquartered in Norwood, Massachusetts. The company is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.
The product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
The company also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products; voltage references; interface products such as isolators, translators and transceivers; wireless products and converters; broadband products including amplifiers, CODECs, chipsets, splitters.
Analog Devices has manufacturing facilities in the United States, Ireland, and Southeast Asia. The company also uses outside foundries, mainly Taiwan Semiconductor Manufacturing Company for front-end processing and third-party subcontractors for back-end operations.
Notably, the company generated $9.43 billion revenues in fiscal 2024.
The company generates revenues from four organized end-markets – Industrial, Consumer, Communications and Automotive.
In Industrial market (46% of fiscal 2024 revenues), Analog Devices caters to the needs of industrial and instrumentation, defense/aerospace, energy management and healthcare sectors.
In Communications market (11%), Analog Devices offers products required in internet infrastructures, broadband and wireless applications.
For Automotive market (30%), the company offers products that are utilized in infotainment, electrification, autonomous, ADAS and safety applications.
Further, the company takes care of the requirements in feature-rich, high-performance products such as portable devices and prosumer video/audio equipment in the Consumer market (13%).
The company caters to the growing demand for its products in these afore mentioned markets via its strong sales channels. We note that it has direct sales offices, sales representatives and distributors in more than 50 countries.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Analog Devices, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2015 would be worth $4,689.48, or a 368.95% gain, as of August 25, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 228.12% and the price of gold went up 184.52% over the same time frame.
Analysts are anticipating more upside for ADI.
Analog Devices' Q3 results demonstrate broad-based recovery, margin resilience and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure, and automotive electrification provide multi-year tailwinds. Strong momentum across the electric vehicle space on the back of its robust Battery Management System solutions remains a tailwind. Strong investments in technology and business innovation are contributing well. Strategic partnerships and internal fab investments position Analog Devices for sustainable growth. The company's strong cash flow generation capability and aggressive shareholder return policies are other positives. However, rising exposure to geopolitical uncertainties and tariffs could curtail production and disrupt customer demand, while increasing operating expenses may weigh on profitability.
Shares have gained 10.70% over the past four weeks and there have been 11 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Analog Devices, Inc. (ADI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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