Analog Devices (ADI)
High-performance analog/mixed-signal — signal chain for comms, industrial, data-center power
AI exposure 20% — derived from reported segment revenue, not asserted.
Where it sits
Silicon Layer → Analog, Logic & Mixed-Signal ICs · figures rebased to Q3 FY2026, reported 2026-08-19
Industrial (51%) — incl. automation, instrumentation leads 3 businesses in this sub-tier that together are 91% of revenue, so Analog, Logic & Mixed-Signal ICs is effectively the whole company rather than one leg of it. The remaining 9% (Consumer (9%)) is deliberately off-map.
Reported segments
- Analog/mixed-signal (by end-market) — 100% of revenue
Analog Devices ($4.02B Q3 FY2026, +40% YoY and +11% sequential — a record, at a 72.5% gross margin and 50% operating margin). Reports one segment with four end markets: Industrial 49% ($1.97B, +53%, led by automated test equipment and aerospace/defence) = primary B1 Analog, Logic & Mixed-Signal ICs; Automotive 25% ($998M, +16% on electric powertrain and ADAS content); Communications 16% (+84% YoY, +18% sequential — the fastest, on data-centre demand); Consumer 10%. Management named data centre and industrial as the growth leaders. Q4 guided to $4.2-$4.4B and $3.71-$4.01 EPS, above consensus.
How the 20% is built
- Analog/mixed-signal (by end-market) — 100% of revenue × 20% AI-driven (disclosed). Communications at 16% grew 84% YoY on data-centre power and connectivity, and the industrial half is led by automated test equipment that serves chip manufacturing — but automotive, consumer and conventional industrial remain the majority
Investment read
Moat. High-performance analog moat (precision signal chain, hard to replicate) + Maxim/Linear acquisitions. Sticky, high-margin, long design cycles.
Bottleneck / pricing power. Pricing power is disclosed, not inferred: 73% adjusted gross margin and 49% adjusted operating margin in Q2 FY2026 (+360bps and +780bps YoY). Precision signal chain has few credible substitutes, and data-center revenue grew more than 90% YoY on optical interconnect and power.
Role in the AI stack. The high-performance analog signal-chain supplier.
Connected companies
- NVIDIA (NVDA) — ADI supplies: data converters, power & interface ICs for AI server boards
- Vertiv Holdings (VRT) — ADI supplies: signal-chain + power into power/thermal systems
- Taiwan Semiconductor (TSM) — ADI is supplied by: foundry capacity for leading-edge analog/mixed-signal
- GE Vernova (GEV) — ADI supplies: precision signal-chain + control ICs for grid/turbine systems
- Texas Instruments (TXN) — ADI competes with: #1 vs #2 broad-line analog; TXN scale/300mm vs ADI high-performance/precision
- NXP Semiconductors (NXPI) — ADI competes with: Automotive + industrial analog/mixed-signal; NXPI ~60% auto revenue
- Monolithic Power Systems (MPWR) — ADI competes with: High-performance power management
- Infineon Technologies (IFNNY) — ADI competes with: partial analog overlap — Infineon (power) vs ADI (signal-chain/converters) compete mainly in power-management analog
- STMicroelectronics (STM) — ADI competes with: analog/power/MEMS — ST vs ADI/onsemi/TI
- MACOM Technology (MTSI) — ADI competes with: RF/microwave/analog chips — MACOM vs Analog Devices (per company competitor list)
- Amazon (AMZN) — ADI supplies: optical + power signal-chain content in AI data-center interconnect (via module/OEM chain) — AWS not publicly named
- Alphabet (GOOGL) — ADI supplies: optical + power signal-chain content in AI data-center interconnect (via module/OEM chain) — Google not publicly named
- Anritsu (ANIRY) — ADI is supplied by: Open RAN radio unit test (reference design demo with Analog Devices)
- Microsoft (MSFT) — ADI supplies: power/signal-chain for Microsoft AI infrastructure
Others in Analog, Logic & Mixed-Signal ICs
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