Jim Cramer on Analog Devices: “I Believe It’s Not Worth Buying”

“Analog Devices reports too, and I’ve been disquieted astir this 1 due to the fact that it’s each astir the Internet of Things, concern semiconductors, which person been very, precise weak. I judge it’s not worthy buying. But if the quarter’s good, get this, I’d similar you to buy, well, astatine slightest deliberation astir buying the banal of Texas Instruments, which is an analog to Analog.”

A banal marketplace graph. Photo by energepic.com

Analog Devices, Inc. (NASDAQ:ADI) designs and manufactures integrated circuits, sensors, and bundle that convert, manage, and process analog and integer signals. Kovitz Investment Group Partners, LLC stated the pursuing regarding Analog Devices, Inc. (NASDAQ:ADI) successful its 2nd 4th 2025 capitalist letter:

“We reestablished a presumption successful Analog Devices, Inc. (NASDAQ:ADI) aft the banal declined 30% from the constituent astatine which we sold it successful precocious February. Analog is simply a exertion person successful the analog semiconductor industry, a specialized marketplace nether the larger semiconductor banner. The institution is characterized by 70% gross margins and #1 and #2 marketplace positions successful cardinal segments wrong the industry. The company’s main competitory vantage is its basal of 11,000 analog engineers, skilled craftspeople with their acquisition augmented by an mean of implicit 7 years of on-the-job experience. We see this engineering “asset” irreplaceable. While Analog does person vulnerability to economically delicate industries similar automotive production, concern production, and “pro-sumer” electronics, its products are successful precocious request fixed that they alteration astir different cutting-edge exertion products and processes that exist. High gross margins supply insulation against tariff effects. Given the amended banal price, we deliberation that having vulnerability to Analog banal implicit the adjacent 5-7 years volition beryllium bully for clients.”

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