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Friday, January 2, 2026

Analog Devices, Inc.

ADI · Nasdaq Global Select Market

Market cap (USD)$133B
SectorTechnology
Industry
CountryUS
Data as of
Moat score
59/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Analog Devices, Inc. designs and sells high-performance analog, mixed-signal, RF and power-management semiconductors used across industrial, automotive, communications and consumer applications. Industrial and Automotive are the largest revenue contributors, and the business benefits from long-lived design-ins in systems with long product lifecycles and high reliability/performance requirements. A second core advantage is economies of scope from a very broad product catalog that spans data conversion, power, RF and sensing, enabling system-level solutions and cross-selling. Communications infrastructure and data-center programs can offer performance-driven sockets but are more cyclical, while Consumer tends to be the most price- and refresh-driven end market.

Primary segment

Industrial

Market structure

Oligopoly

Market share

HHI:

Coverage

4 segments · 8 tags

Updated 2026-01-02

Segments

Industrial

Industrial analog, mixed-signal, RF and power management semiconductors

Revenue

44.7%

Structure

Oligopoly

Pricing

strong

Share

Peers

TXNSTMIFNNYNXPI+2

Automotive

Automotive analog, mixed-signal, power management and sensing semiconductors

Revenue

29.8%

Structure

Oligopoly

Pricing

moderate

Share

Peers

IFNNYNXPISTMON+3

Communications

Communications infrastructure and data-center power/connectivity semiconductors (RF, mixed-signal, power)

Revenue

12.5%

Structure

Oligopoly

Pricing

moderate

Share

Peers

AVGOQRVOSWKSNXPI+2

Consumer

Consumer electronics analog/mixed-signal and power management semiconductors

Revenue

13%

Structure

Competitive

Pricing

weak

Share

Peers

TXNSTMONMCHP+3

Moat Claims

Industrial

Industrial analog, mixed-signal, RF and power management semiconductors

FY2025 end-market revenue share computed from ADI FY2025 Form 10-K 'Revenue Trends by End Market' table (Industrial revenue $4,929,409m of $11,019,707m total). Source: https://www.sec.gov/Archives/edgar/data/6281/000000628125000153/adi-20251101.htm

Oligopoly

Design In Qualification

Demand

Strength

Durability

Confidence

Evidence

Industrial systems often have long programs and high reliability/performance requirements; once designed-in, replacements typically require redesign and validation. Long product lifecycles increase stickiness.

Erosion risks

  • Dual-sourcing and second-source qualification by large OEMs
  • Commoditization of general-purpose analog catalog parts
  • Increased competition from low-cost regional suppliers

Leading indicators

  • Industrial bookings / book-to-bill commentary
  • Design-win pipeline / content-per-system updates
  • Gross margin and ASP stability through cycles

Counterarguments

  • For many catalog parts, customers can swap suppliers with limited redesign
  • Competitors with larger manufacturing scale may undercut on price in downcycles

Scope Economies

Supply

Strength

Durability

Confidence

Evidence

A very broad catalog enables cross-selling across the signal chain (data conversion, power, RF, sensors) and lets customers prototype faster using standard parts, especially valuable in fragmented industrial applications.

Erosion risks

  • SKU complexity can increase costs and dilute focus
  • Customers adopting integrated modules may reduce discrete IC attach
  • Competitors matching breadth via acquisitions

Leading indicators

  • Share of revenue from top 100 products vs long-tail
  • New product introduction cadence
  • Cross-sell penetration across product families

Counterarguments

  • Breadth alone does not guarantee socket wins versus specialist competitors
  • Some customers prefer multi-vendor strategies to reduce supply risk

Capex Knowhow Scale

Supply

Strength

Durability

Confidence

Evidence

Hybrid internal fabrication plus external foundries and specialized processes support high-performance analog/mixed-signal manufacturing, though not exclusive versus other large analog peers.

Erosion risks

  • Foundry capacity tightness or pricing changes
  • Process know-how diffusion across suppliers over time

Leading indicators

  • Capex intensity and capacity expansion announcements
  • Yield / gross margin resilience during ramps

Counterarguments

  • Peers with 300mm analog fabs may have a structural cost advantage
  • Reliance on external foundries can limit differentiation on unit cost

Data Workflow Lockin

Demand

Strength

Durability

Confidence

Evidence

ADI's software and design ecosystems can reduce design time and encourage engineers to standardize on ADI workflows, but adoption and switching costs are still emerging.

Erosion risks

  • Engineers prefer neutral third-party EDA ecosystems
  • Tools may not become standard across customers

Leading indicators

  • Developer tool downloads / user metrics disclosed by company
  • Attach rate of software tools to silicon programs

Counterarguments

  • Most silicon vendors offer similar reference designs and tools
  • Switching between vendor tools may be easy if only used for evaluation

Automotive

Automotive analog, mixed-signal, power management and sensing semiconductors

FY2025 end-market revenue share computed from ADI FY2025 Form 10-K 'Revenue Trends by End Market' table (Automotive revenue $3,277,865m of $11,019,707m total). Source: https://www.sec.gov/Archives/edgar/data/6281/000000628125000153/adi-20251101.htm

Oligopoly

Design In Qualification

Demand

Strength

Durability

Confidence

Evidence

Automotive programs are long-lived and design wins can persist across vehicle platforms; ADI positions a broad automotive portfolio across electrification, connectivity and sensing.

Erosion risks

  • Automotive OEMs pushing aggressive cost-down and multi-sourcing
  • Platform loss risk if a competitor wins next-generation socket

Leading indicators

  • Automotive revenue growth vs industry light-vehicle production
  • Content-per-vehicle / electrification exposure updates

Counterarguments

  • Many automotive IC categories are competed on cost and supply assurance, not just performance
  • Large competitors may bundle broader MCU + analog platforms

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Reliability and technical support matter in automotive; ADI explicitly cites these as competitive factors.

Erosion risks

  • Quality issues or recalls damaging reputation
  • Competitors closing perceived reliability gap

Leading indicators

  • Customer quality metrics / returns trends (if disclosed)
  • OEM/Tier-1 award announcements

Counterarguments

  • Automotive purchasing often favors multi-sourcing regardless of brand
  • Scale players can match reliability and outcompete on cost

Scope Economies

Supply

Strength

Durability

Confidence

Evidence

Breadth across signal chain + power + sensing supports more wallet-share per vehicle platform and reduces customer integration effort.

Erosion risks

  • OEMs standardizing on integrated domain controllers reducing discrete content
  • Competitor platforms with tighter MCU + analog integration

Leading indicators

  • Automotive attach across electrification + connectivity
  • Design-win announcements across multiple vehicle subsystems

Counterarguments

  • Automotive Tier-1s may prefer best-of-breed suppliers by subsystem
  • Breadth may not translate into preferred supplier status

Communications

Communications infrastructure and data-center power/connectivity semiconductors (RF, mixed-signal, power)

FY2025 end-market revenue share computed from ADI FY2025 Form 10-K 'Revenue Trends by End Market' table (Communications revenue $1,377,865m of $11,019,707m total). Source: https://www.sec.gov/Archives/edgar/data/6281/000000628125000153/adi-20251101.htm

Oligopoly

Design In Qualification

Demand

Strength

Durability

Confidence

Evidence

Infrastructure programs require high-performance RF/mixed-signal signal chains; design cycles can be long, supporting multi-year sockets, but vendor churn can occur with each new standard or architecture.

Erosion risks

  • Telecom capex volatility
  • Architectural shifts (e.g., open RAN, integration) reducing discrete content

Leading indicators

  • Carrier and cloud capex trends
  • ADI communications end-market growth vs peers

Counterarguments

  • Base-station platforms can switch suppliers at each generational refresh
  • Competitors may win on integrated RF front-end modules

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

In RF and mixed-signal infrastructure, reliability and technical support are key purchasing criteria; ADI cites these factors as competitive drivers.

Erosion risks

  • Competitors matching performance levels
  • Price pressure during downcycles

Leading indicators

  • Win rate on major infrastructure platforms (if disclosed)
  • Gross margin trend in communications mix shifts

Counterarguments

  • Large customers can qualify multiple suppliers and pressure pricing
  • Some RF components trend toward commoditization over time

Scope Economies

Supply

Strength

Durability

Confidence

Evidence

Portfolio breadth across RF signal chain, power management and high-speed connectivity supports system-level solutions for communications and data centers.

Erosion risks

  • Customers standardizing on fewer platforms with more integration
  • Competitors bundling adjacent digital components

Leading indicators

  • Attach of power + connectivity into data-center programs
  • Communications segment revenue growth during infrastructure upcycles

Counterarguments

  • Some customers buy RF, power and connectivity from separate best-in-class vendors
  • Broadcom and others have scale and bundling advantages in certain sockets

Consumer

Consumer electronics analog/mixed-signal and power management semiconductors

FY2025 end-market revenue share computed from ADI FY2025 Form 10-K 'Revenue Trends by End Market' table (Consumer revenue $1,434,568m of $11,019,707m total). Source: https://www.sec.gov/Archives/edgar/data/6281/000000628125000153/adi-20251101.htm

Competitive

Design In Qualification

Demand

Strength

Durability

Confidence

Evidence

Consumer design wins can be meaningful but are typically shorter-cycle and more price-sensitive than industrial/auto; switching is easier at each product refresh.

Erosion risks

  • Rapid product cycles and frequent re-sourcing
  • High customer bargaining power and cost-down pressure
  • Commoditization in mature consumer categories

Leading indicators

  • Consumer segment revenue volatility vs end-demand
  • Changes in gross margin with consumer mix shifts

Counterarguments

  • OEMs can swap suppliers at each refresh with limited switching cost
  • Competitors may win with more integrated or lower-cost solutions

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Brand and reliability can help in premium consumer audio and interface categories, but price and integration dominate many purchasing decisions.

Erosion risks

  • Aggressive price competition
  • OEM preference for single-chip integration from competitors

Leading indicators

  • Share of consumer revenue from premium vs commoditized categories
  • New design wins in portable/hearables

Counterarguments

  • Brand matters less when OEMs prioritize cost and integration
  • Consumer attach rates can shift quickly with fashion/product cycles

Scope Economies

Supply

Strength

Durability

Confidence

Evidence

Reusable core technologies (signal chain and power) can be adapted across consumer categories; however, consumer market share is vulnerable to rapid shifts in OEM preferences.

Erosion risks

  • Faster commoditization of consumer IC functions
  • Lower-cost competitors catching up on features

Leading indicators

  • Time-to-market and NPI cadence
  • Customer concentration changes in consumer segment

Counterarguments

  • Scope benefits can be offset by consumer OEMs preferring specialists
  • Consumer attach rates are less sticky than industrial/auto

Evidence

sec_filing
Analog Devices, Inc. Form 10-K (FY ended 2025-11-01)

Our analog ICs typically have long product life cycles.

Long lifecycles imply long-lived design-ins and higher switching friction for OEMs.

earnings_call
Analog Devices (ADI) Q3 2025 Earnings Call Transcript (The Motley Fool)

We had record design wins in 2024. We've continued growth in design wins in 2025.

Management highlights persistent design-win momentum, consistent with a design-in driven model.

sec_filing
Analog Devices, Inc. Form 10-K (FY ended 2025-11-01)

Our product offerings include more than 75,000 stock keeping units (SKUs).

Large SKU breadth supports economies of scope and customer one-stop-shop behavior.

earnings_call
Analog Devices (ADI) Q3 2025 Earnings Call Transcript (The Motley Fool)

Scale is really important in analog ... with 70,000 SKUs.

Management explicitly links scale and breadth to competitiveness in analog.

news
Analog rankings: Top 10 suppliers own 68% market share (EDN, citing IC Insights)

Analog Devices Inc. ... holds the runner-up position with a 13% market share.

IC Insights ranking (via EDN) supports ADI's large-scale position among analog suppliers.

Showing 5 of 17 sources.

Risks & Indicators

Erosion risks

  • Dual-sourcing and second-source qualification by large OEMs
  • Commoditization of general-purpose analog catalog parts
  • Increased competition from low-cost regional suppliers
  • SKU complexity can increase costs and dilute focus
  • Customers adopting integrated modules may reduce discrete IC attach
  • Competitors matching breadth via acquisitions

Leading indicators

  • Industrial bookings / book-to-bill commentary
  • Design-win pipeline / content-per-system updates
  • Gross margin and ASP stability through cycles
  • Share of revenue from top 100 products vs long-tail
  • New product introduction cadence
  • Cross-sell penetration across product families
Created 2026-01-02
Updated 2026-01-02

Curation & Accuracy

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