10 Must-Buy Semiconductor Stocks to Invest In

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

Number of Hedge Fund Holders: 79

Analog Devices, Inc. (NASDAQ:ADI) is one of the must-buy semiconductor stocks to invest in. Morgan Stanley has raised its price target on Analog Devices, Inc. (NASDAQ:ADI) to $273 from $212, maintaining a bullish stance on the semiconductor company. With the current market price at $236.70, this revised target implies an upside of approximately 15%. The upgrade reflects growing confidence in Analog Devices’ ability to capitalize on the expanding demand for high-performance analog and mixed-signal chips, which are critical components in a wide array of applications including automotive, industrial automation, and 5G infrastructure.

Morgan Stanley’s positive outlook is driven by Analog Devices’ strong product portfolio and strategic investments in emerging technologies. The company’s focus on precision data conversion and signal processing positions it well to benefit from increasing adoption of advanced sensor technologies and the push toward electrification across multiple industries. Additionally, Analog Devices’ robust balance sheet and consistent cash flow generation provide the financial flexibility to pursue growth opportunities and navigate supply chain challenges.

The analyst also highlighted the company’s resilience amid the broader semiconductor cycle, noting that Analog Devices’ diverse end-market exposure helps mitigate volatility. As industries continue to integrate more sophisticated analog components to support AI, IoT, and smart devices, Analog Devices is expected to maintain steady growth. Morgan Stanley’s revised target underscores the belief that the stock remains undervalued relative to its long-term potential in a technology-driven market.