We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where Analog Devices, Inc. (NASDAQ:ADI) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A technician working on power management in a semiconductor factory.
Analog Devices, Inc. (NASDAQ:ADI)
Analog Devices, Inc. (NASDAQ:ADI) is a manufacturer, designer, tester, and marketer of software, ICs, and subsystems products. It offers power management and reference products, power ICs, and data converter products. The company serves automotive, aerospace, consumer, and other industries. The stock is up 4.22% in the last 5 trading days against the S&P 500’s 1.13% gains.
Analog Devices, Inc. (NASDAQ:ADI)’s bullish move during the last week came amid analyst optimism regarding the company’s future prospects. Investment firm Benchmark initiated the stock and made some exciting comments about the stock while assigning a price target of $245, a 14.5% upside from here on. Analysts are impressed by the company’s growth prospects, but investors will also find the margin expansion opportunity as a critical determinant of future returns.
Over the next few years, the company’s new product pipeline will be driven in part by the Maxim acquisition. Earnings are expected to outpace revenue growth by a decent margin going forward. The improvement in the product profile will also help the company close the gap with Texas Instruments, a much bigger rival in the analog semiconductors space.
Overall ADI ranks 10th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of ADI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as ADI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
