2024-03-10 05:37:33 ET
Summary
- Maxim acquisition drove Analog Devices' exceptional 64.2% growth in 2022, increasing analog market share to tie with Texas Instruments.
- Maxim contributed 41.7% of ADI's growth, mainly in the automotive segment, with expectations for continued revenue growth.
- ADI's slowdown in 2023 attributed to China's negative growth, inventory issues, with anticipated improvements in 2024 driven by various factors.
- Despite a negative growth forecast in 2024, we believe Analog Devices is well-positioned for future growth, and we maintain our Buy rating for ADI stock.
In our previous coverage of Analog Devices, Inc. ( ADI ), we examined the attributes of Maxim acquisition to ADI’s exceptional growth (64.2%) in 2022. Firstly, we expected ADI's analog market share to reach 17.2% in 2022, tying Texas Instruments for the highest in the industry. Secondly, we determined Maxim’s impact in ADI’s automotive segment, which drove over 100% growth in its automotive BMS portfolio. In addition, we calculated that Maxim was directly responsible for 41.7% of ADI's growth in 2022, while the remaining 22.5% was ascribed to organic expansion. Lastly, we expected Maxim to continue driving ADI’s revenue growth through a higher proportion of product releases....
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Analog Devices: Automotive Segment Key Driver For Growth