Is Analog Devices (ADI) One of Goldman Sachs' Top Semiconductor Stock Picks?

Analog Devices (NASDAQ:ADI) is among Goldman Sachs’ top semiconductor stock picks. On January 16, 2026, TD Cowen raised its price target on Analog Devices (NASDAQ:ADI) to $355 from $285, citing the company’s strong positioning in industrial markets and growth across subsegments such as automated test equipment and aerospace and defense. With a market cap of $151 billion and revenue growth of nearly 17% over the past year, ADI remains a key player in the semiconductor industry despite a tempered automotive outlook for the January quarter.

The firm noted ADI’s healthy gross profit margin of 61.5% and moderate debt levels, while acknowledging limited gross margin upside compared to peers. Still, above‑average margins in its industrial segment should drive accretion over time. TD Cowen expects strong results when ADI reports earnings on February 25, with analysts forecasting fiscal 2026 EPS of $9.91, though its late reporting cycle may leave little room for defense if peers deliver mixed outlooks.

The same day, Stifel also raised its price target on Analog Devices to $330 from $290 while maintaining a Buy rating, calling the company a high‑performance analog and mixed‑signal powerhouse and a key challenger to Texas Instruments. The firm highlighted ADI’s resilience in turbulent markets, with 87% of October quarter sales from B2B revenue, a revamped consumer segment focused on high‑margin products, synergies from the Maxim Integrated acquisition, and flexible manufacturing capacity that supports stronger revenue and margin stability compared to peers.

Analog Devices, Inc. (NASDAQ:ADI) is a U.S. semiconductor company specializing in high‑performance chips that power industrial, automotive, communications, and defense applications.

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