#5 - Analog Devices (NASDAQ:ADI)
If you’re looking for chip stocks whose best days are still ahead, Analog Devices Inc. (NASDAQ: ADI) is worth a look. Analog Devices’ core business is in the industrial sector, specifically the automotive market.
ADI stock is up only about 12% in 2024, lagging behind other stocks in the chip sector. However, it’s interesting to note that the stock is still positive despite revenue and earnings being sharply lower year-over-year for the last four quarters. That reflects slowing demand in the automotive sector. However, as we acknowledged in the introduction, today’s vehicles require 1,000 to 3,000 chips.
Furthermore, some industry analysts are projecting that this market has hit a bottom in terms of demand. That’s reflected in the Analog Devices analyst forecasts on MarketBeat, which forecast an additional 11.7% increase in the ADI stock price. Plus, investors get a dividend that the company has increased for 22 consecutive years and currently offers a 1.65% yield.
About Analog Devices
Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.
Read More - Current Price
- $216.55
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $249.80 (15.4% Upside)
