Oppenheimer Raises ADI Price Target to $265 on Cyclical Recovery Hopes

Oppenheimer recently raised the price target on Analog Devices, Inc. (NASDAQ:ADI) to $265 from $225 and kept an Outperform rating on the shares ahead of quarterly results. ADI designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products.

The advisory saw upside to Q2 results and Q3 outlook as an overdue cyclical recovery took root. Tariff noise was easing a bit but first half of the year pull-in activity likely muted second half seasonality, in Oppenheimer’s view. The advisory viewed Analog Devices as a prime beneficiary of cyclical rebound in core auto/industrial.

A technician working on power management in a semiconductor factory.

In earnings for the first quarter, the company had reported earnings per share of $1.63, beating market estimates by $0.09. The revenue over the time was $2.42 billion, beating analyst expectations by $60 million. The shares are up over 27% in the past month following a US-China trade deal that has temporarily eased pressure on semis.

While we acknowledge the potential of ADI, 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 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires

Disclosure: None.