Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024

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

Number of Hedge Fund Holders: 63

Cramer noted that as of last Friday’s close, Analog Devices, Inc. (NASDAQ:ADI) stock was up 11%.

“Analog Devices, that’s internet of things, up 11%… But both Micron and ADI are well off their high, so the whole thing might be a bit of a comedown for them.”

Analog Devices (NASDAQ:ADI) designs and manufactures integrated circuits, software, and subsystems, offering products for data conversion, power management, amplifiers, radio frequency ICs, and micro-electromechanical systems. The company recently reported its fourth-quarter earnings, with revenue of $2.4 billion, exceeding analyst expectations. Adjusted EPS stood at $1.67, also slightly above estimates.

However, the company saw significant year-over-year declines, particularly in its industrial segment, which dropped by 21% in the quarter and 35% for the fiscal year. CEO and Chairman Vincent Roche acknowledged these challenges, attributing them to unprecedented customer inventory pressures. Despite this, he highlighted the resilience of the company’s business model, which allowed the company to maintain operating margins above 40%.

During the earnings call, Analog Devices (NASDAQ:ADI) management emphasized the company’s ongoing focus on research and development, which contributed to the double-digit growth in its design win pipeline for fiscal 2024. The company also mentioned the momentum in its Maxim revenue synergies pipeline, particularly in sectors like GMSL, healthcare, and data center power. This progress is seen as a crucial step toward the company’s goal of achieving $1 billion in revenue synergies by 2027.