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BofA Raises Analog Devices (ADI) Target, Sees Long AI-Driven Upgrade Cycle Ahead

Analog Devices, Inc. (NASDAQ:ADI) is included among the 12 Best Long Term US Stocks to Buy Now.

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On December 16, BofA raised its price target on Analog Devices, Inc. (NASDAQ:ADI) to $320 from $290 and kept a Buy rating. The move came as the firm refreshed price targets across its US semiconductor coverage.

BofA sees 2026 as a midpoint in a long upgrade cycle. Think eight to ten years of rebuilding traditional IT systems so they can handle faster, AI-heavy workloads. Stocks may stay choppy as investors question AI returns and hyperscaler cash flows. At the same time, demand from large language model builders and AI factories should help balance that out.

In Analog Devices, Inc. (NASDAQ:ADI)’s fiscal Q4 2025 earnings call, CEO Vincent Roche said ADI is leaning into record R&D spending. The goal is to extend its lead in analog, mixed signal, and power technologies. Software, digital tools, and AI are getting more attention than ever.

Roche pointed to solid momentum in industrial markets. Automation, robotics, and energy stood out. He expects more growth in FY26 as the design pipeline builds, the industry shifts toward HBM4, and hyperscaler capital spending returns to double-digit growth.

Aerospace and defense posted record results. Automotive also delivered a record year, with ADI growing faster than overall vehicle production.

Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor company focused on high-performance chips used across industrial, automotive, communications, and defense markets.

While we acknowledge the potential of ADI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADI and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Best Blue-Chip Stocks with Growing Dividends and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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