BofA’s List Of AI & Semiconductor Stocks That Fund Managers Love & Hate: 16 Stocks On The Manager Radar

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

Number of Hedge Fund Holders In Q2 2024: 64

Section: Gaining Popularity

Analog Devices, Inc. (NASDAQ:ADI) is a specialty semiconductor company that makes and sells power management, signal processing, and other associated chips. While these products are also used in the data center industry, the firm’s stock has gained a modest 16% year to date due to its reliance on the industrial and automotive industries for revenue. For the nine months ending in June, 77% of Analog Devices, Inc. (NASDAQ:ADI)’s $6.9 billion in revenue came from these industries. Consequently, as major automakers continue to face production constraints and an uncertain inventory environment along with an industrial slowdown in a high interest rate era, Analog Devices, Inc. (NASDAQ:ADI) has failed to take off in 2024. This means that once industrial activity picks up, the stock could see tailwinds but this might stretch out to early 2025 as most industrial orders are made during the start of the year.

Carillon Tower Advisors mentioned Analog Devices, Inc. (NASDAQ:ADI) in 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.”