On May 20, Stifel lifted the price target on Analog Devices Inc. (NASDAQ:ADI) from $225 to $248, maintaining its Buy rating on the stock.

Tore Svanberg from Stifel increased the price target on ADI ahead of its earnings tomorrow. Analog Devices will report its earnings for the second quarter of 2025 before the market opening on May 22. Svanberg believes that the company's revenue will be in line with its $2.5 billion guidance.Is Taiwan Semiconductor Manufacturing Company (TSM) the Best Major Stock to Buy According to Billionaires?

A close-up of a complex network of integrated circuits used in logic semiconductors.

Analog Devices' Q1 FY2025 results were driven by growth in sectors, including industrial automation, surgical robotics, and automotive. The company anticipates a double-digit growth in these sectors in the upcoming quarters. During Q1, the company surpassed revenue estimates by $63.55 million, achieving $2.42 billion in revenue. Industrial automation, surgical robotics, and automotive sectors accounted for 44%, 30%, and 12% of the total revenue during Q1, respectively.

Svanberg mentioned that the company could guide Q3 revenue at the mid-point in line with its $2.6 billion estimate. The growing semiconductor market positions ADI to capitalize on it. Analog Devices is aiming for a sustained recovery in the semiconductor cycle, with normalized inventory levels and enhanced customer engagements, as management highlighted during Q1.

Analog Devices, Inc. (NASDAQ:ADI) is a prominent semiconductor company. It designs, manufactures, tests, and sells various solutions, including integrated circuits (ICs), and software and subsystems that are used in different industries.

While we acknowledge the potential of ADI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure. None.

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