Stock Analysis | Analog Devices Outlook - A Cautious Technical Picture Amid Mixed Analyst Sentiment

Market Snapshot

Takeaway: Analog Devices (ADI.O) is showing a positive short-term price movement of 9.77%, but technical indicators suggest caution due to an internal diagnostic score (0-10) of 1.7 on the technical side.

News Highlights

• McKinsey on tariffs and chip supply chains: Recent research from McKinsey highlights the uncertainty in U.S. semiconductor policy, potentially affecting companies like Analog Devices that rely on global supply chains.
• Japan-U.S. cooperation on rare earths and semiconductors: Japan is proposing increased collaboration with the U.S., which could impact long-term supply chain dynamics and influence companies like ADI.
• Global semiconductor R&D partnership: A new MoU between IIT Kharagpur and Singapore’s IME could lead to advancements in advanced designs and AI, indirectly benefiting semiconductor players like ADI.

Analyst Views & Fundamentals

Average Rating Score: 3.60 (simple mean), and Weighted Rating Score: 3.02 (performance-weighted). Analysts are generally neutral, with a mix of "Buy", "Strong Buy", and "Neutral" ratings.

Rating Consistency: There is dispersion among analyst opinions, with 5 neutral, 1 strong buy, and 4 buy ratings in the last 20 days. This indicates no strong consensus.

Price Trend Alignment: The recent price trend of a 9.77% rise seems to align with the slightly neutral market expectations, but the mixed analyst ratings suggest some caution.

Fundamental Highlights (with internal diagnostic scores):

• Gross Profit Margin (GPM): 61.04% (Internal diagnostic score: 3.0)
• Gross Margin (GMAR): 61.04% (Internal diagnostic score: 3.0)
• Cash-UP: -22.37% (Internal diagnostic score: 3.0)
• Net Operating Cash Flow / Total Liabilities: 15.78% (Internal diagnostic score: 1.0)
• Interest Coverage Ratio: 1113.32% (Internal diagnostic score: 2.0)

Money-Flow Trends

Big-money (block) inflow is showing a positive trend, with a block inflow ratio of 50.39% and a positive trend overall. The inflow pattern is also positive for the extra-large and small investor categories, indicating broad-based participation. However, medium and large money flows are mixed, with medium showing a negative trend. Retail (small) money flows are positive at 50.62%, suggesting retail confidence despite the bearish technical indicators.

Key Technical Signals

Recent technical indicators show a weak outlook for ADI, with the following internal diagnostic scores (0-10):

• Williams %R Overbought: Score 2.39
• RSI Overbought: Score 1.00

Both indicators are bearish, with RSI Overbought showing particularly weak internal strength. Across the last five days (2025-08-22 to 2025-08-27), WR Overbought and RSI Overbought have appeared regularly, reinforcing the bearish pattern.

Key Insight: The technical side is weak, and it is suggested to avoid the stock based on an internal diagnostic score of 1.7. Bearish signals dominate the chart, with two out of two analyzed indicators showing caution.

Conclusion

Actionable Takeaway: Given the weak technical indicators and mixed analyst sentiment, it may be prudent to wait for a clearer trend to emerge before considering entry. Investors might also monitor the company's response to global supply chain developments and potential earnings performance for further direction.