12 Best Nanotechnology Stocks to Buy According to Hedge Funds

7. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holders: 63

Analog Devices, Inc. (NASDAQ:ADI) is a leading semiconductor manufacturer specializing in integrated circuits and systems. Just last year, the company invested over $1 billion to expand its Beaverton wafer fabrication facility, significantly increasing its capacity for nanoscale product manufacturing. This expansion tripled internal production capabilities, leveraging advanced fabrication technology for 180-nanometer and smaller processes. Analog Devices, Inc. (NASDAQ:ADI) also collaborates with MIT.nano, a premier research center for nanoscience and nanotechnology, supporting innovations like nanoDAC digital-to-analog converters, amplifiers, and data converters.

In fiscal year 2024, Analog Devices, Inc. (NASDAQ:ADI) demonstrated strong financial performance, generating $9.4 billion in revenue and an earnings per share of $6.38. The company achieved a robust operating margin of 41% and a free cash flow margin of 33%, returning $2.4 billion to shareholders. Soon after the company’s earnings report, Truist Securities revised its outlook, lowering the price target from $233 to $227 while maintaining a Hold rating due to cautious forecasts for 2025. Conversely, Goldman Sachs reaffirmed its Buy rating, raising the price target to $261, signaling a 19% potential upside.