Analog Devices (ADI)’s Strong Forecast Points to Continued AI-Driven Growth

Bernstein upgraded Analog Devices (ADI) to Outperform, raising its price target to $465. The chipmaker reported Q3 revenue of $4.022B and EPS of $3.45, beating estimates. Q4 guidance also exceeded expectations, with revenue and EPS estimates higher than consensus. Shares rose 1% in premarket trading.

Analog Devices (ADI) reported Q3 revenue of $4.02B, up 40% YoY, and raised Q4 guidance to $4.3B. AI data center chip sales doubled YoY, driving 72.5% gross margin. Morningstar raised its fair value estimate to $445 from $380, citing AI growth potential and strong margins.

Analog Devices Inc (ADI) reported Q3 2026 revenue of $4.02B, up 11% sequentially and 40% YoY. CEO Vincent Roche expects strong growth in 2027 driven by defense and AI sectors, with data center and AI representing 30% of business. ADI faces inflationary pressures and supply chain challenges but aims to maintain 74% gross margins. The company anticipates double-digit growth in data center through 2030 and sees opportunities in ATE and energy sectors.

Analog Devices reported record quarterly revenue of $4.02 billion, up 40% YoY, driven by industrial and data-center demand. GAAP operating income rose 97% to $1.61 billion, with EPS increasing from $1.04 to $2.74. The company expects revenue to reach $4.3 billion in the current quarter, according to management's guidance.

Analog Devices (ADI) stock rose 2.20% premarket after reporting a 40% revenue increase to $4.02B in Q3, with earnings up 163% to $2.74 per share. The company expects $4.3B in Q4 revenue, following its $1.5B acquisition of Empower Semiconductor.

Analog Devices forecasted Q4 revenue and profit above estimates, citing strong demand for its power-management chips in AI-driven computing, data centers, and industrial applications. Q3 revenue was $4.02B, up 40% YoY, and EPS was $3.45, beating estimates. The company expects Q4 revenue of $4.3B and EPS of $3.86, both above estimates. Shares have gained 39% YTD.