Analog Devices (ADI) Demonstrates Strong Quarter and Growth in Data Center/AI Trends According to Morgan Stanley

Analog Devices Inc. (NASDAQ:ADI) is one of the most profitable tech stocks to buy. On November 26, Morgan Stanley analyst Joseph Moore raised the firm’s price target on Analog Devices to $293 from $288 with an Overweight rating on the shares. This sentiment was posted after the company reported another strong quarter, accompanied by an above-seasonal outlook. Moore attributes this strength to a combination of company-specific and cyclical factors. The company’s growth in market share across various end markets, combined with its exposure to trends like data center and AI, is offsetting broader macroeconomic softness.

Analog Devices’ reported that it made $3.08 billion in FQ4 2025, which was a year-over-year rise of 25.90% and also surpassed expectations by $59.41 million. The company also earned $2.26 per share, which beat Street estimates by $0.03. For the full fiscal year 2025, Analog Devices achieved record revenue of $11 billion, which marked a 17% increase from 2024. EPS grew 22% compared to 2024, and reached $7.79.

The company’s growth was broad-based, with double-digit growth achieved across all end markets during the fiscal year, driven by both cyclical and company-specific factors. For FQ1 2026, Analog Devices projects revenue of ~$3.1 billion. This guidance reflects anticipated sequential growth led by Industrial and Communications, while Auto is expected to be down mid-single digits and Consumer down low double digits.

Analog Devices Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets ICs, software, and subsystems products in the US, the rest of North and South America, Europe, Japan, China, and the rest of Asia.

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Disclosure: None. This article is originally published at Insider Monkey.