ADI - Cyclical strength combined with strong execution. PT to $405

研报英文原文证据摘录

ADI - Cyclical strength combined with strong execution. PT to $405

ns,

TR to Target (1.2)% and perhaps share gains. Comms (which is now 75% AI/DC related) was quite strong,

Price (May 19, 2026) $414.31 beating expectations by ~6%. Consumer was 3% above estimates. Margins were equally

52-Wk Range $432.39-$210.47 strong, with GPM beating by 120bps (pricing, mix, and utilization) and OPM beating by

110bps. Together, the revenue and margin upside drove a 20c EPS beat. Looking forward, Market Cap ($M) $203,202

ADI guided an even stronger CQ2, with revenue 8% above, OPM 110bps above, and ADTV 2,612,980 EPS 31c above consensus. We believe the upside is driven by broad strength across

Shares Out (M) 490 end markets, but notably in the Auto and Comms end markets as inventory depletion has

Short Interest Ratio/% Of Float 2.2% triggered elevated bookings (see longer description in our April sector upgrade). Finally,

Dividend/Yield $4.51/1.1% ADI announced the acquisition of Empower Semiconductor (private) for $1.5B in an all-cash

Enterprise Value ($M) $207,897 transaction expected to close in 2H26. We believe the acquisition will expand ADI's high-

Cash & Equivalents ($M) $3,439 density power portfolio for AI applications; management expects revenue to ramp in 2027.

Total Debt ($M) $8,135 Less Good: The need for Empower; LT margin upside; Cash flow. ADI noted its

ROIC 9.6% acquisition of Empower (private) provides technologies like Integrated voltage regulators

BV/Share $68.80 (IVR) and silicon-based capacitors (e-cap). Management highlighted that it might have

TBV/Share $(0.99) grown these capabilities internally from historical acquisitions of Linear Tech, Maxim, and

by extension Volterra, but chose to buy Empower to accelerate time to market. We suspect