Analog Devices Exhibits Some Caution, but Demand Remains Strong on the Whole; $172 FVE

Wide-moat Analog Devices reported solid fiscal third-quarter results and provided investors with a healthy forecast for the October quarter, as the global chip shortage is ongoing, and it continues to see chip demand more than supply. The company did see some cancellations and some softening demand in consumer and communication chips, but demand for industrial and automotive chips remains strong and the company is still striving to catch up to its large order backlog. We maintain our $172 fair value estimate and view shares as fairly valued.