BofA Raises Analog Devices (ADI) Target, Sees Long AI-Driven Upgrade Cycle Ahead

Analog Devices, Inc. (NASDAQ:ADI) is included among the 12 Best Long Term US Stocks to Buy Now.

On December 16, BofA raised its price target on Analog Devices, Inc. (NASDAQ:ADI) to $320 from $290 and kept a Buy rating. The move came as the firm refreshed price targets across its US semiconductor coverage.

BofA sees 2026 as a midpoint in a long upgrade cycle. Think eight to ten years of rebuilding traditional IT systems so they can handle faster, AI-heavy workloads. Stocks may stay choppy as investors question AI returns and hyperscaler cash flows. At the same time, demand from large language model builders and AI factories should help balance that out.

In Analog Devices, Inc. (NASDAQ:ADI)’s fiscal Q4 2025 earnings call, CEO Vincent Roche said ADI is leaning into record R&D spending. The goal is to extend its lead in analog, mixed signal, and power technologies. Software, digital tools, and AI are getting more attention than ever.

Roche pointed to solid momentum in industrial markets. Automation, robotics, and energy stood out. He expects more growth in FY26 as the design pipeline builds, the industry shifts toward HBM4, and hyperscaler capital spending returns to double-digit growth.

Aerospace and defense posted record results. Automotive also delivered a record year, with ADI growing faster than overall vehicle production.

Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor company focused on high-performance chips used across industrial, automotive, communications, and defense markets.

While we acknowledge the potential of ADI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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