10 High Growth Semiconductor Stocks That Are Profitable Heading into 2025

7) Analog Devices, Inc. (NASDAQ:ADI)

5-year Sales Growth: ~10%

TTM net income: $1,635.3 Million

Number of Hedge Fund Holders: 63

Analog Devices, Inc. (NASDAQ:ADI) remains a critical player in the semiconductor industry, which specializes in designing, manufacturing, and marketing analog, mixed-signal, and digital signal processing (DSP) integrated circuits. With the broader semiconductor industry moving towards an upcycle, Analog Devices, Inc. (NASDAQ:ADI) is well-placed to capitalize on the recovery. Its high-quality assets, strong industrial exposure, and new design wins throughout business lines offer a robust foundation for outperformance.

If the recovery paces up, Analog Devices, Inc. (NASDAQ:ADI) is expected to see significant upside potential. Its ability to innovate and adapt to a dynamic market environment, together with a strong presence in secular growth areas, can enable it to capture a significant share of the market during the upcycle. Truist Securities increased the price objective on the shares of Analog Devices, Inc. (NASDAQ:ADI) from $216.00 to $230.00.

Many applications need analog-to-digital and digital-to-analog conversion in order to bridge real-world signals with digital systems. With industries adopting more advanced technologies, the demand for Analog Devices, Inc. (NASDAQ:ADI)’s precision signal processing will continue to grow. Some of the key markets are automotive, industrial automation, communications, and consumer electronics. Carillon Tower Advisers, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Analog Devices, Inc. (NASDAQ:ADI) rebounded as management teams at several semiconductor companies in the analog space called the bottom, seeing improved conditions ahead. The analog semiconductor industry is a very cyclical business that has underperformed the broader semiconductor industry for several years.”