Should I Buy ADI? ADI 2026 Analysis

Should You Buy Analog Devices Inc (ADI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

318.700

1 Day change

0.34%

52 Week Range

319.260

Analysis Updated At

2026/01/28

BUY for a beginner, long-term investor who wants to act now. ADI is showing a strong upcycle setup (bullish moving averages + accelerating fundamental recovery) supported by a wave of analyst price-target hikes and solid latest-quarter growth. The stock is gapping up pre-market to ~316, which is extended vs. the pivot and right around key resistance, but given the user’s impatience and long-term preference, the risk/reward still favors initiating a position now rather than waiting for an ideal pullback.

Technical Analysis

Trend is bullish overall but short-term momentum is mixed. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), confirming an established uptrend. RSI(6) ~59.98 is neutral-to-slightly-strong (not overbought). However, MACD histogram is negative (-0.0609) and negatively expanding, implying short-term momentum is weakening even as the broader trend remains up. Key levels: Pivot 302.91 (now below price), resistance R1 310.65 and R2 315.43; pre-market at ~316.44 suggests a breakout above R2, which is constructive if it holds. Support levels: S1 295.17, S2 290.39. Intellectia Proprietary Trading Signals: **Intellectia Proprietary Trading Signals** - [AI Stock Picker](module://ai_stock_pick): No signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock recently.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Options positioning is mixed: Open Interest Put-Call Ratio at 0.85 leans mildly bullish/positioned for upside over time, but the Option Volume Put-Call Ratio at 1.85 shows heavier put trading today (near-term caution/hedging). Implied volatility is elevated (30D IV ~41.6) vs historical volatility (~31.97) and IV percentile is very high (91.2), meaning options are priced expensively and the market is bracing for larger moves (often around upcoming events like earnings). Overall: long-term sentiment is okay, but near-term traders are hedging the move after the run-up.

Technical Summary

Sell

Buy

Positive Catalysts

- Strong latest reported quarter (2025/Q4) with broad improvement in revenue, earnings, and margins.
- Analyst sentiment is improving sharply with multiple price target raises in January, reflecting a “steadying upcycle” and expectations for industrial recovery and AI-related strength.
- Board enhancement: appointment of Dr. Yoky Matsuoka as independent director may be viewed as a governance/strategy positive.
- Upcoming earnings (QJAN 2026 on 2026-02-18 pre-market) could serve as a catalyst if guidance confirms recovery acceleration.

Neutral/Negative Catalysts

- Short-term technical momentum is not fully aligned (MACD histogram negative and worsening) despite the uptrend, increasing the chance of a near-term pullback after the pre-market gap.
- Options flow shows near-term defensiveness (put volume outweighs call volume), which can reflect caution at current prices.
- Congress trading in the last 90 days shows 4 sales and 0 buys (cautious signal from influential holders).
- Auto end-market noted as somewhat challenged in analyst commentary, which could limit the speed of the cyclical rebound.

Financial Performance

Latest quarter: 2025/Q4. Growth trends were strong: Revenue rose to ~$3.076B (+25.90% YoY), Net Income to ~$787.7M (+64.77% YoY), EPS to $1.60 (+66.67% YoY), and Gross Margin improved to ~57.03% (+13.42% YoY). This combination (accelerating earnings + expanding margin) supports the case that ADI is moving into a stronger phase of the cycle rather than merely stabilizing.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent Wall Street trend is clearly improving: multiple firms raised price targets in January (Susquehanna to 360, BofA to 350, Oppenheimer to 350, Stifel to 330, Morgan Stanley to 314) while generally maintaining Buy/Overweight/Outperform-type ratings; only Truist is noted at Hold (with a lower target earlier at 291). Wall Street pros: cyclical recovery potential in analog/industrial, pricing/lead-time improvement, AI infrastructure and edge-AI demand tailwinds, and expectation of modest beats/raises. Wall Street cons: recovery not uniform (auto weaker), and some caution that diversified analog may have less upside pressure than pure AI beneficiaries.

23 Analyst Rating

Wall Street analysts forecast ADI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADI is 290.38 USD with a low forecast of 240 USD and a high forecast of 350 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

19 Buy

4 Hold

0 Sell

Strong Buy

Current: 317.625

Low

240

Averages

290.38

High

350

Current: 317.625

Low

240

Averages

290.38

High

350

Susquehanna

Positive

maintain

$350 -> $360

AI Analysis

2026-01-22

Reason

Susquehanna

Price Target

$350 -> $360

AI Analysis

2026-01-22

maintain

Positive

Reason

Susquehanna raised the firm's price target on Analog Devices to $360 from $350 and keeps a Positive rating on the shares. The firm updated targets in the semiconductor group as a part of an earnings preview. Susquehanna generally expects in-line results to modest upside in Q4, amid a "steadying upcycle" and a broadening of the artificial intelligence infrastructure supply chain. While the industrial end market is improving, auto remains somewhat challenged, the analyst tells investors in a research note.

BofA

Buy

upgrade

$320 -> $350

2026-01-21

Reason

BofA

Price Target

$320 -> $350

2026-01-21

upgrade

Buy

Reason

BofA raised the firm's price target on Analog Devices to $350 from $320 and keeps a Buy rating on the shares. The firm raised price targets for most of its diversified analog semi stock coverage, noting that it expects modest calendar Q4 beats and Q1 raises across the board led by industrial semis given ongoing rebounds across most subsegments, favorable pricing, and robust growth in strategic AI businesses.

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ADI Should I Buy

ADI Should I Buy

Should You Buy Analog Devices Inc (ADI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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