Yahoo Finance If You Invested $1000 in Analog Devices a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Analog Devices (ADI) ten years ago? It may not have been easy to hold on to ADI for all that time, but if you did, how much would your investment be worth today?
Analog Devices' Business In-Depth
With that in mind, let's take a look at Analog Devices' main business drivers.
Analog Devices, Inc. is headquartered in Norwood, Massachusetts. The company is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.
The product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
The company also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products; voltage references; interface products such as isolators, translators and transceivers; wireless products and converters; broadband products including amplifiers, CODECs, chipsets, splitters.
Analog Devices has manufacturing facilities in the United States, Ireland, and Southeast Asia. The company also uses outside foundries, mainly Taiwan Semiconductor Manufacturing Company for front-end processing and third-party subcontractors for back-end operations.
Notably, the company generated $12.3 billion revenues in fiscal 2023.
The company generates revenues from four organized end-markets – Industrial, Consumer, Communications and Automotive.
In Industrial market (53% of fiscal 2023 revenues), Analog Devices caters to the needs of industrial and instrumentation, defense/aerospace, energy management and healthcare sectors.
In Communications market (13%), Analog Devices offers products required in internet infrastructures, broadband and wireless applications.
For Automotive market (24%), the company offers products that are utilized in infotainment, electrification, autonomous, ADAS and safety applications.
Further, the company takes care of the requirements in feature-rich, high-performance products such as portable devices and prosumer video/audio equipment in the Consumer market (10%).
The company caters to the growing demand for its products in these afore mentioned markets via its strong sales channels. We note that it has direct sales offices, sales representatives and distributors in more than 50 countries.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Analog Devices ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2014 would be worth $4,207.66, or a gain of 320.77%, as of June 14, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 180.65% and gold's return of 73.20% over the same time frame.
Going forward, analysts are expecting more upside for ADI.
Analog Devices reported weak fiscal second quarter results wherein both earnings and revenues declined year over year. This was due to softness in the consumer market. Weak demand environment was a major concern. Sluggish communications and industrial markets due to the broad-based inventory correction, was a negative. Also, macro headwinds led to weakening momentum in the automotive market. The ongoing inventory correction is expected to be a headwind for the company in the near term. Nevertheless, strength across electric vehicle space on the back of Analog Devices’ robust Battery Management System solutions remains a tailwind. Increasing power design wins are other positives. Solid momentum of HEV platform across cabin electronics ecosystem is a positive. The stock has outperformed its industry on a year-to-date basis.
Shares have gained 9.30% over the past four weeks and there have been 13 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
