Analog Devices, Inc. (NASDAQ:ADI) is one of the 10 Best Semiconductor Stocks to Buy Right Now. On August 20, the company announced its results for Q3 2025, with its revenue and EPS exceeding the high end of its expectations. Its revenues came in at $2.88 billion, with double-digit YoY growth throughout all end markets. Analog Devices, Inc. (NASDAQ:ADI)’s diluted EPS amounted to $1.04, up 32% YoY.
Amidst tariffs and trade fluctuations, demand for Analog Devices, Inc. (NASDAQ:ADI)’s products is strong. Its emphasis on cutting-edge innovation places it well to capitalize on the growth of the intelligent physical edge. Furthermore, its diverse and resilient business model allows it to navigate different market conditions. Analog Devices, Inc. (NASDAQ:ADI) ended its Q3 2025 with continued backlog growth as well as healthy bookings trends, mainly in the Industrial end market.
For Q4 2025, the company expects revenue of $3.0 billion (+/- $100 million), while reported EPS is anticipated to be $1.53 (+/-$0.10), and adjusted EPS to be $2.22 (+/-$0.10). Kovitz Investment Group Partners, LLC, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We reestablished a position in Analog Devices, Inc. (NASDAQ:ADI) after the stock declined 30% from the point at which we sold it in late February. Analog is a technology leader in the analog semiconductor industry, a specialized market under the larger semiconductor banner. The company is characterized by 70% gross margins and #1 and #2 market positions in key segments within the industry. The company’s principal competitive advantage is its base of 11,000 analog engineers, skilled craftspeople with their education augmented by an average of over 7 years of on-the-job experience. We consider this engineering “asset” irreplaceable. While Analog does have exposure to economically sensitive industries like automotive production, industrial production, and “pro-sumer” electronics, its products are in high demand given that they enable most other cutting-edge technology products and processes that exist. High gross margins provide insulation against tariff effects. Given the better stock price, we think that having exposure to Analog stock over the next 5-7 years will be good for clients.”
While we acknowledge the potential of ADI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
