Analog Devices: A Bullish Outlook Backed by Sector Tailwinds

Analog Devices Inc. (ADI) is a semiconductor company with a strong position in AI-linked semiconductor names. Analysts expect AI-focused companies to post median revenue growth of 32% in 2025 and 17% in 2026, supporting ADI's case for a cyclical rebound. Analysts have raised their price targets on ADI and maintained a Buy rating, citing its leadership in key markets and robust gross margins. The company is expected to report Q3 2025 results on August 20.

Title: Analog Devices Inc. (ADI) Set to Report Q3 2025 Earnings: Analysts Expect Cyclical Rebound

Analog Devices Inc. (ADI), a leading semiconductor company, is poised to release its Q3 2025 earnings on August 20, 2025. The company has a strong position in AI-linked semiconductor names and is expected to benefit from the projected cyclical rebound in the sector. Analysts have raised their price targets and maintained a Buy rating, citing ADI's leadership in key markets and robust gross margins.

Analysts predict that AI-focused companies, including ADI, will post median revenue growth of 32% in 2025 and 17% in 2026. This growth is supported by the prolonged inventory correction across the semiconductor sector, which is expected to reach its trough and set the stage for a cyclical rebound. Within this context, ADI is well-positioned to benefit from the upturn, as it maintains an overweight stance in AI-driven chipmakers.

Analysts have raised their price targets on ADI, with several firms maintaining a Buy rating. For instance, Citi analyst Christopher Danely reaffirmed a Buy rating with a $290 price target, citing strong industrial demand, operational efficiency, and potential Q4 2024 earnings outperformance. Similarly, Stifel Nicolaus analyst Tore Svanberg raised his price target on ADI to $270, reiterating a Buy rating and expressing confidence in the company's long-term prospects.

ADI's gross margins are particularly noteworthy, standing at 70%, which helps offset tariff impacts. The company's leadership in key markets, such as AI infrastructure, electric vehicles (EVs), industrial automation, aerospace, and communications, further underscores its strategic position. ADI's extensive portfolio of solutions using high-performance analog, mixed-signal, and digital signal processing technologies positions it well to capitalize on the sector's growth.

Despite the challenges posed by the automotive sector, analysts remain optimistic about ADI's earnings. The company is expected to report $1.93 per share in Q2 2025 earnings, representing a 22.15% year-over-year (YoY) growth. Full-year estimates for ADI are at $7.40 per share and $10.58 billion in revenue.

In conclusion, ADI's Q3 2025 earnings report is expected to be a pivotal moment for the company. With analysts predicting a cyclical rebound and maintaining a positive outlook, investors should closely monitor ADI's performance and the broader semiconductor sector.

References
[1] https://www.trefis.com/stock/adi/articles/572459/how-will-analog-devices-stock-react-to-q3-results/2025-08-14
[2] https://finance.yahoo.com/news/wall-street-analysts-predicting-analog-130114407.html
[3] https://www.ainvest.com/news/analog-devices-shares-surge-3-56-1-15-billion-volume-ranking-67th-market-activity-analyst-reaffirms-buy-rating-2508/
[4] https://finviz.com/news/139433/analog-devices-adi-sees-bullish-sentiment-backed-by-sector-tailwinds