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Analog Devices Inc ADI

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Analog Devices Still Prospering From Strong Chip Demand; Fair Value Estimate to $141 From $137

Brian Colello, CPA Sector Director

Analyst Note

| Brian Colello, CPA |

Wide-moat Analog Devices reported strong fiscal second-quarter results and provided investors with a healthy forecast for the July quarter, as the semiconductor industry continues to see customer demand well in excess of supply, while chipmakers continue to navigate around supply chain challenges. ADI’s commentary suggests that the firm will face supply/demand challenges through the end of calendar 2021, similar to peers. We modestly raise our fair value estimate to $141 from $137 but still view shares as slightly overvalued.

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Company Profile

Business Description

Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.

Contact
One Analog Way
Wilmington, MA, 01887
T +1 781 329-4700
Sector Technology
Industry Semiconductors
Most Recent Earnings Apr 30, 2021
Fiscal Year End Oct 31, 2021
Stock Type Cyclical
Employees 15,900

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