Should I buy Analog Devices stock in 2025? (NZ Edition)

What is Analog Devices?

How much is the Analog Devices stock?

The price of Analog Devices stock is rising this week. As of now, Analog Devices (ADI) trades at $215.75 USD, with a 24-hour gain of $0.13 (+0.06%) and a weekly change of -7.58%.

The stock’s beta is 0.99, suggesting price movements similar to the broader market. Given these figures, ADI presents a stable balance between growth potential and moderate volatility for NZ investors seeking exposure to the global semiconductor sector.

Our full analysis on the Analog Devices stock

Having thoroughly examined Analog Devices’ latest financial statements and reviewed its share performance in the last three years, our team has synthesised a wealth of quantitative and qualitative data—including technical indicators, fundamental metrics, sector trends and competitor analysis—using our proprietary algorithms. This holistic approach enables a sophisticated assessment of ADI’s prospects within the global and Asia-Pacific semiconductor arena. So, why might Analog Devices stock once again become a strategic entry point into the high-value technology hardware sector in 2025?

Recent performance and market context

Over the 12 months to 30 May 2025, Analog Devices (NASDAQ: ADI) delivered a measured share price evolution, currently trading at USD $215.75, which represents a modest intraday uptick of +0.06%. The stock’s 52-week range spans from $158.65 to $247.10—a reflection of the sector’s volatility but also of its resilience amid shifting global demand for semiconductors.

Despite a -7.58% correction from its 52-week high, ADI’s fundamentals remain notably robust. Recent market dynamics have favoured innovation-centric companies with a global footprint, and ADI’s ability to grow across all core end-markets signals a strong operational execution. Macroeconomically, the ongoing reindustrialisation, electrification trends, and the rapid expansion of 5G and IoT infrastructure worldwide continue to create a positive backdrop for component suppliers, particularly those with deep ties to industrial, automotive, and communications verticals—precisely ADI’s primary fields.

Perhaps most compelling has been the company’s Q4 2024 outperformance. Not only did Analog Devices surpass analyst expectations, but it also achieved sequential growth across all end-markets, with quarterly revenue jumping 22.3% year on year and net income accelerating by an impressive 88.5% over the same period. This acceleration demonstrates how the company’s diversified portfolio serves as both a hedge against cyclicality and a launchpad for long-term growth.

Technical analysis

Technical signals for ADI are currently displaying notable bullish undertones. The daily Relative Strength Index (RSI) stands at 56.12, a neutral-to-bullish reading which suggests the stock is not overbought, allowing room for further upward movement. The Moving Average Convergence Divergence (MACD) at 5.87 provides a clear buy signal, corroborating recent price action strength.

Further reinforcing the constructive technical landscape, all key moving averages (20-, 50-, 100-, and 200-day) track below or just at current price levels ($212.24, $199.70, $208.36, and $214.32, respectively), each offering additional support. This rare alignment often precedes medium-term upward momentum—especially when paired with a solid fundamental backdrop.

Key technical support sits at $208.65, with resistance at $220.97. The clustering of moving averages and volume-weighted support levels around $208–$215 suggests a durable base from which further gains can be launched. Moreover, the broader technical consensus is unequivocally positive, with 13 bullish, 6 neutral, and just 3 bearish signals.

In summary, recent price action, supported by sustained buying interest (evidenced by average daily volume near 4.4 million shares), positions ADI as an attractive candidate for short-to-intermediate-term bullish exposure.

Fundamental analysis

From a fundamental perspective, Analog Devices offers a combination of financial solidity and compelling growth. Fiscal 2024 revenues surpassed $9.8 billion, with Q4 sales above $2.4 billion—outperforming guidance and market consensus. Adjusted earnings per share reached $1.67, handily beating estimates and confirming operational efficiency.

Operating margins of 25.75% and an EBITDA approaching $4.4 billion underscore management’s discipline and the scalability of ADI’s business. Most impressively, quarterly revenue increased over 22% year-on-year, while earnings growth soared a remarkable 88.5%, highlighting both organic strength and the company’s effectiveness at integrating strategic acquisitions.

On the valuation front, ADI trades at a forward P/E ratio of 26.94—elevated relative to some cyclical peers yet wholly justified by higher margins, superior pricing power, and the above-average earnings growth profile (5-year EPS CAGR forecasted at 37%). The premium is further offset by a consistent dividend (1.84% yield), which has grown for ten consecutive years at a 7.3% yearly clip—a rare feat and clear signal of management’s shareholder orientation.

• A global number-one or number-two market position in analog and signal-processing semiconductors—an area with high barriers to entry and recurring revenues.
• Broad geographic reach across the Americas, Europe, and Asia, insulating the business from single-market risks.
• A diversified product portfolio spanning data converters, power management, amplifiers, MEMS, and RF/microwave solutions—exposing ADI to secular growth in electrification, automation, automotive advanced driver-assistance systems (ADAS), and next-gen communications.

All told, these fundamentals suggest that Analog Devices remains fundamentally sound, efficiently managed, and strategically well-positioned for long-term shareholder value creation.

Volume and liquidity

Trading volume is a critical indicator of both institutional confidence and underlying liquidity. With an average daily volume of 4.37 million shares and a float of over 494 million shares, ADI enjoys ample liquidity for both private and institutional investors, facilitating dynamic and responsive price discovery.

Institutional ownership stands at a commanding 89.4%, which signals deep market confidence and professional stewardship. Such strong hands tend to support valuations and can moderate volatility. The float composition and sustained trading activity suggest that ADI’s price is well-anchored, yet remains responsive to new information and upside catalysts.

For New Zealand and Asia-Pacific investors, this level of liquidity enables effective portfolio allocation, risk management, and timely entry/exit points—including for retirement account strategies where stability and growth are prized.

Catalysts and positive outlook

• Technological innovation: ADI continues to lead in MEMS (Micro-Electro-Mechanical Systems), RF, and signal-processing technologies, cementing its status as an indispensable partner for next-generation automotive, industrial, and 5G communications solutions.
• End-market growth: The company’s exposure to high-growth verticals—including electric vehicles (EVs), factory automation, and smart cities—positions it to ride some of the most powerful secular trends in global technology.
• New product cycles: A steady pipeline of advanced chipsets, power management ICs, and related software and subsystems, all tailored for the digital transformation of industry, ensure both margin and revenue expansion.
• Capital allocation: ADI’s clean balance sheet (net debt/equity at 0.21), ample free cash flow ($3.29 billion), and rising dividends offer additional capital appreciation and income potential.
• ESG leadership: Commitment to environmental sustainability, robust governance, and inclusive talent development underline ADI’s credentials as a responsible corporate citizen, increasingly valued by institutional investors.

The analyst consensus target of $241.90—over 12% upside—reflects confidence in the next earnings cycle and recognition of these medium-term growth drivers. Projected 5-year revenue and EPS CAGRs of nearly 12% and 37%, respectively, set the stage for compounding gains over subsequent periods.

Investment strategies

• Short-term:
• The stock is trading above well-established support, with technical momentum turning favourable; ideal for tactical entries aligned with earnings season or ahead of upcoming product launches or corporate events.
• The RSI and MACD indicate continued upside without signs of overbought exhaustion, making brief holding periods for swing trades particularly attractive.
• Medium-term:
• Investors seeking exposure to robust dividend growth, stable free cash flow, and predictable earnings momentum could capitalise on price retracements towards the $210–$215 range for optimal cost basis.
• Anticipated catalysts—integration of recent innovations, sector upgrades, or positive surprises in end-market demand—may serve as triggers for re-rating.
• Long-term:
• The secular growth of digital infrastructure, electrification, and automation offers a powerful, multiyear tailwind. ADI’s brand, strategic investments, and product diversification support its ability to compound shareholder value well into the next decade.
• Dividend growth and high institutional ownership enhance the case for buy-and-hold strategies, whether for direct share portfolios or sector ETFs.

Across all time horizons, a disciplined approach—anchoring positions at or near current support levels, or opportunistically on any market-driven dips—seems to represent an excellent opportunity to gain exposure to a cornerstone player in the semiconductor ecosystem.

Is it the right time to buy Analog Devices?

Synthesising the above, Analog Devices stands at the intersection of financial strength, technological leadership, and favourable market momentum. With consistently strong revenue and earnings trajectories, a premium (but justified) valuation, outstanding corporate stewardship, and a flow of innovation underpinning future growth, the fundamentals justify renewed interest from a wide spectrum of investors.

Technical and volume indicators reinforce the sense that ADI may be entering a new bullish phase, while the current price level—combined with analyst upgrades and robust sector tailwinds—suggests the stock could represent a strategic entry point just as another medium-term growth cycle begins.

For New Zealand investors seeking exposure to a global leader with stable income, strong innovation, and excellent capital discipline, Analog Devices appears to present a compelling case for inclusion in a diversified technology allocation. With multiple catalysts on the horizon and the potential for both capital gains and rising dividends, ADI is, in our view, a stock that certainly deserves to be on the radar of forward-thinking investors building for the next wave of digital transformation.

The current market landscape, bolstered by ADI’s fundamental strengths and superior outlook, suggests a window of opportunity—one that agile capital allocators will not want to overlook as the next phase of semiconductor secular growth unfolds.

How to buy Analog Devices stock in New Zealand?

Buying shares in Analog Devices (ADI) online is now simpler and more secure than ever, thanks to regulated brokers offering direct access to the US Nasdaq exchange from New Zealand. As a retail investor, you can choose between two main methods: buying physical ADI shares (known as “spot” or cash buying) or trading via Contracts for Difference (CFDs), which allow for leveraged exposure. Both approaches have their own benefits and fee structures. Below, we break down how each option works, so you can make an informed choice. For a detailed comparison of popular brokers in NZ, see the table further down this page.

Cash buying

A cash purchase means you directly own shares of Analog Devices in your name through your broker. This is the traditional way to invest and gives you the right to receive dividends and vote at shareholder meetings. For NZ investors, most regulated online brokers charge a fixed commission per transaction, often between NZ$5 and NZ$15, depending on the platform.

Example

If the Analog Devices share price is US$215.75 and you invest NZ$1,000 (about US$610, exchange rate as of May 2025), you could buy approximately 2.8 shares after accounting for a NZ$8 brokerage fee.
✔️ Gain scenario:
If the ADI share price rises by 10%, your NZ$1,000 investment becomes NZ$1,100 (gross, before potential currency fluctuations or fees).
Result: +NZ$100 gross gain, or +10% on your original stake.

Trading via CFD

CFD trading lets you speculate on the price movements of Analog Devices without owning the actual shares. Instead, you enter into a contract reflecting the price change, and you can trade both rising and falling markets. With CFDs, brokers typically charge a spread (the difference between buy and sell price) rather than a fixed commission, and overnight financing fees apply if you hold your position longer than one day.

Example

You open a CFD position on Analog Devices with NZ$1,000 margin and 5x leverage, giving you market exposure of NZ$5,000.
✔️ Gain scenario:
If ADI stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +NZ$400 profit on a NZ$1,000 stake (exclusive of spreads and overnight fees).

Final advice

Before investing in Analog Devices, it’s essential to compare fees, local currency support, and trading features offered by brokers in NZ. Your decision between spot buying and CFDs should match your risk profile, investment objectives, and preferred holding duration. The best method is the one that fits your goals—refer to our broker comparison table below to get started with confidence.

Our 7 tips for buying Analog Devices stock

The latest news about Analog Devices

Analog Devices’ share price has remained stable above key technical supports, with consensus “Buy” signals increasing. Over the last week, the stock has consistently traded above the pivotal $208.65 support zone and Fibonacci levels, with moving averages (20, 50, 100, 200 days) all indicating continued buying opportunities. The MACD and a relative strength index close to neutral together underpin stability and technical resilience, attracting positive sentiment from algorithmic and institutional investors, which holds particular relevance for NZ-based funds and retirement managers seeking strong US technology exposure in diversified global portfolios.

Recent financial results exceeded analyst expectations, supporting robust growth and investor confidence across international markets including New Zealand. For Q4 2024, Analog Devices reported revenue surpassing $2.4 billion and adjusted earnings per share of $1.67, both ahead of expectations. The company achieved 22.3% year-over-year revenue growth and a striking 88.5% increase in quarterly profits, outperforming industry peers; this is noteworthy for New Zealand investors relying on solid dividend and capital growth from key US semiconductor holdings, also considering the upcoming ex-dividend and payment dates—June 4 and June 18, 2025—which provide timely entry points for income-oriented portfolios.

Analog Devices continues to see forecasted growth in core sectors that align with New Zealand’s industrial and technological interests. With projected five-year compound annual growth rates of 11.92% for revenue and 37.01% for earnings per share, ADI remains a leader in high-value analog, industrial, automotive, and communications semiconductor solutions. These sectors are vital to New Zealand’s own manufacturing, transport, and communications development, providing strategic alignment for NZ-based technology funds and institutional investors focusing on future-facing infrastructure.

Dividend strength and consistent increases offer compelling yield in a global context for New Zealand investors. ADI has maintained double-digit consecutive annual dividend growth for a decade, with the most recent year-over-year increase at 7.3%. The current yield sits at 1.84%, with strong free cash flow ($3.29 billion) and a solid balance sheet (debt/equity ratio of 0.21). This reliability is attractive for New Zealand superannuation schemes, managed funds, and income portfolios seeking USD-denominated distribution stability, even when considering currency risk.

Market consensus and valuation remain positive, with strategic advantages supporting long-term confidence despite premium pricing. Analyst targets suggest potential upside of +12.12% from current levels, supported by ADI’s dominant position in analog ICs, MEMS, and RF technologies, and a diversified global footprint, including indirect product presence in Oceania. While the trailing P/E is elevated at 58.63, forward multiples and ROE improvements indicate pricing aligned with future growth. For NZ-based decision-makers, this justifies ongoing monitoring and potential accumulation, especially in the context of multi-asset or sector ETF structures.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.