IFNNY - Analog Devices Ready To Leverage A Long-Term Inflection In Chip Demand
- The combination of recovery demand and content growth is driving exceptionally strong demand for the chip sector, and Analog's broad exposure gives it good leverage to this upcycle.
- Lead times will eventually shrink from the very elevated levels of today, but that correction will be just a dip along a longer-term path of significant multiyear chip volume growth.
- Given long design cycles and the lack of transformative market/product exposures, the benefits from the Maxim deal are likely to materialize over a number of years.
- Very few high-quality chip companies are undervalued today, and Analog is no exception as cyclical enthusiasm has driven stretched multiples.
For further details see:
Analog Devices Ready To Leverage A Long-Term Inflection In Chip Demand