Analog Devices Stock Falls 3.2% Amid Semiconductor Sector Weakness.

Analog Devices shares fell 3.2% after Texas Instruments, a rival analog chipmaker, announced weak profit expectations, sparking concerns about demand slowdowns in automotive and industrial markets. Despite the decline, Analog Devices has had 11 moves greater than 5% over the last year and is up 8.6% since the beginning of the year. The company's shares are trading close to their 52-week high of $245.68.

Analog Devices (NASDAQ: ADI) shares fell 3.2% in the morning session on July 2, 2025, following a weak profit forecast from rival analog chipmaker Texas Instruments (NASDAQ: TXN). The semiconductor sector was negatively impacted by the announcement, with Analog Devices' stock price reacting to the broader market sentiment [1].

Texas Instruments, a major player in the analog chip space, announced that it expected third-quarter earnings to be below analyst consensus, sparking concerns about a potential slowdown in demand, particularly from the automotive and industrial markets. This negative outlook from a key industry bellwether weighed on investor sentiment, dragging down shares of competitors like Analog Devices [1].

Despite the decline, Analog Devices has experienced 11 moves greater than 5% over the last year, indicating market volatility. The company is up 8.6% since the beginning of the year and is trading close to its 52-week high of $245.68, set on July 2025 [1]. Investors who bought $1,000 worth of Analog Devices' shares five years ago would now be looking at an investment worth $2,051 [1].

Analog Devices' stock performance was also influenced by a recent upgrade from Seaport Global Securities. The firm upgraded Analog Devices' stock rating to Neutral from Sell, citing improved market conditions and increased risk appetite [3]. This upgrade reflects a shift in the firm's outlook on the analog inventory cycle, which was previously expected to worsen amid a slowing macroeconomy.

Additionally, Texas Instruments' earnings report, scheduled for July 22, 2025, may provide further insights into the semiconductor sector's health. The company recently announced a quarterly cash dividend of $1.36 per share, payable on August 12, 2025, as part of its ongoing capital return program to shareholders [3].

Investors should closely monitor Analog Devices' performance in its forthcoming earnings report, scheduled for the end of July 2025. The company is expected to report EPS of $1.93, up 22.15% from the prior-year quarter, and revenue of $2.76 billion, reflecting a 19.18% rise from the equivalent quarter last year [2].

References:
[1] https://finance.yahoo.com/news/why-analog-devices-adi-stock-191049965.html
[2] https://www.nasdaq.com/articles/analog-devices-adi-stock-drops-despite-market-gains-important-facts-note
[3] https://za.investing.com/news/analyst-ratings/seaport-global-upgrades-analog-devices-stock-rating-to-neutral-from-sell-93CH-3797003