35 AI Superstars According to Goldman Sachs

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

Number of Hedge Fund Holders: 64 

Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. Bank of America recently lowered the price target on the stock to $255 from $260 and kept a Buy rating on the shares. Following the company’s earnings report, the advisory lowered its FY25 and FY26 pro-forma EPS estimates by 13% and 7% to $7.07 and $8.43, respectively, on a softer start to FY25 due to a sluggish autos recovery and consumer segment seasonality. Examining the read-across from Analog Devices, the advisory said the company’s comments suggested slightly positive trends for more industrial exposed peers like Texas Instruments and Microchip, while pointing to modestly continued headwinds for peers with higher autos exposure.

Vincent Roche, the CEO of Analog Devices, Inc. (NASDAQ:ADI), said during the second quarter earnings call that data center customers were investing in new vertical power architectures to meet the intensified energy and processing demands of AI compute systems. Per Roche, the solutions offered by his firm in this regard reduced power losses by up to 35% compared to existing architectures. This product is now gaining traction with hyperscalers.