Analog Devices makes the tiny chips that translate real-world signals (sound, motion, temperature) into digital data for cars, factories, and phones—like a universal translator for physical reality.
Money comes from selling these chips across industrial, automotive, and communications markets, with gross margins around 65% and net margins near 30%—recurring design-win revenue that repeats as products ship.
Decades of analog expertise and customer-specific designs create switching costs that Texas Instruments and Infineon can't easily replicate, though cyclical downturns and competition in commodity chips erode pricing power.
Five-factor rating
Hold (sector percentile 57) — value B-, growth B+, profitability B+, momentum C+, revisions B. Updated daily, sector-relative, identical for every user.
