Analog Devices Takes Aim At AI Energy Bottlenecks With Empower Buy

Key Points

Analog Devices beat Q2 earnings and revenue estimates, with adjusted EPS of $3.09 vs. $2.90 expected, and revenue of $3.62B vs. $3.51B consensus.
The company announced a $1.5 billion all-cash acquisition of Empower Semiconductor to bolster its AI power management portfolio, addressing power density and thermal challenges in AI data centers.
ADI issued stronger-than-expected Q3 guidance, forecasting adjusted EPS of $3.15-$3.45 and revenue of $3.8B-$4.0B, both above analyst estimates.
Analysts remain bullish, with recent price target hikes from Stifel ($450), Wells Fargo ($470), and Cantor Fitzgerald ($510), and the stock carries a Buy consensus with an average target of $399.16.
Technically, ADI is in a long-term uptrend but near a resistance zone; MACD is flashing caution, suggesting momentum may be fading.

Get Analog Devices Alerts

Weekly insights + SMS alerts

Analog Devices, Inc. Analog Devices (ADI) shares ticked higher in premarket trading Wednesday after the semiconductor company delivered a solid second-quarter earnings beat, issued stronger-than-expected guidance, and announced a $1.5 billion acquisition of AI power management specialist Empower Semiconductor.

Analog Devices Q2 Earnings Beat Expectations

Analog Devices reported second-quarter adjusted earnings of $3.09 per share, topping analyst estimates of $2.90. Revenue rose 37.2% year over year to $3.62 billion, ahead of the $3.51 billion consensus estimate. Earnings jumped 67% from the prior-year quarter, fueled by strong growth across the company's business segments.

The company also gave a rosy outlook for the third quarter. It forecast adjusted earnings of $3.15 to $3.45 per share, well above the analyst consensus of $3.00, and projected revenue of $3.8 billion to $4.0 billion, beating estimates of $3.62 billion. On a GAAP basis, Analog Devices expects earnings of $2.45 to $2.75 per share, compared with Wall Street expectations of $2.23.

Empower Semiconductor Acquisition Expands AI Portfolio

On Tuesday, Analog Devices announced a $1.5 billion all-cash acquisition of Empower Semiconductor to expand its AI power management portfolio. The deal strengthens ADI's integrated voltage regulator and silicon capacitor technologies used in AI data centers and high-performance computing systems. ADI said the acquisition will help address growing power density and thermal challenges tied to next-generation AI infrastructure. The transaction is expected to close in the second half of 2026, pending regulatory approvals. As of the fiscal second quarter ended May 2, 2026, Analog Devices reported $2.437 billion in cash and cash equivalents.

Analog Devices Technical Outlook: Momentum And Key Moving Averages

The bigger-picture trend remains bullish: ADI is trading 2.6% above its 20-day SMA ($407.22), 16% above its 50-day SMA ($360.33), and 43.1% above its 200-day SMA ($292.17), keeping the longer-term uptrend intact. The 20-day SMA above the 50-day SMA reinforces that the intermediate trend is still pointed up.

Momentum is the part that's flashing caution right now: MACD is below its signal line and the histogram is negative, which suggests upside pressure is fading versus the prior upswing unless buyers can reassert control. In plain English, MACD compares shorter- and longer-term trend momentum, and being below the signal line often shows the move is losing steam.

From a structure standpoint, the July 2025 golden cross (50-day SMA moving above the 200-day SMA) continues to support the longer-term bull case, but the stock's May swing high/52-week high area is still acting like an overhead "decision zone." If ADI can't push through that area, traders often look for a pullback toward more "defensible" moving-average support.

Key Support: $341.50 — a nearby level where buyers previously stepped in, and it sits close to the broader moving-average support zone (near the 100-day SMA at $337.99)

Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price forecast of $399.16. Recent analyst moves include:

Stifel: Buy (Raises forecast to $450.00) (May 18)
Wells Fargo: Overweight (Raises forecast to $470.00) (May 13)
Cantor Fitzgerald: Overweight (Raises forecast to $510.00) (May 13)

Analog Devices ETF Exposure: Funds With The Biggest Weights

VanEck Semiconductor ETF (SMH): 4.63% Weight
YieldMax Ultra Option Income Strategy ETF (ULTY): 4.78% Weight
FPA Global Equity ETF (FPA): 4.21% Weight

Significance: Because ADI carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.