TD Cowen Increases Analog Devices (ADI), Maintains Buy Rating

On May 23, TD Cowen raised its price target on Analog Devices, Inc. (NASDAQ:ADI)’s stock to $250 from the prior target of $200, while reiterating a “Buy” rating. This was seen after the company released its recent earnings report and guidance.

A technician working on power management in a semiconductor factory.

As per the analyst, the results were strong but saw less attention because of worries related to early order fulfillment and the impact of tariffs on the broader semiconductor industry. Joshua Buchalter (the firm’s analyst) stated that, amidst uncertainties, Analog Devices, Inc. (NASDAQ:ADI) happens to be in a stronger cyclical position, given the ongoing secular tailwinds, as compared to peers.

The company’s strong emphasis on innovation and customer success allows it to continue to enhance its leadership at the increasingly AI-driven Intelligent Edge. Buchalter believes that the company’s robust inventory management and fab-lite business model are expected to help it withstand challenges. Analog Devices, Inc. (NASDAQ:ADI) stated that its Q2 2025 bookings accelerated across the end markets and regions, leading to sequential backlog growth.

These improved demand signals help its outlook for continued growth in Q3 2025. For Q3 2025, the company expects revenue of $2.75 billion (+/- $100 million). At the midpoint, it anticipates a reported operating margin of ~27.2% (+/-150 bps), and an adjusted operating margin of ~41.5% (+/-100 bps).

Analog Devices, Inc. (NASDAQ:ADI) is engaged in designing, manufacturing, testing, and marketing integrated circuits (ICs), software, and subsystem products.

While we acknowledge the potential of ADI to grow, 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.

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Disclosure: None.