Stock Entry Point Article​

Analog Devices, Inc 1

Analog Devices, the market leader in the data conversion segment, is one of the best semiconductor stocks on the market now. The stock may be down 1.89% year-to-date, however, it is up 43% since the March market fall. Analog Devices has a 48.5% global market share, making it one of the top multinational company stocks.

The increasing shift towards a digital economy is proving to be a credible tailwind for the company. The trend positions the company as one of the top semiconductor stocks. Just recently, Analog Devices CEO Vincent Roche, in a CNBC interview, said, ” All of the intelligence — the whole bedrock of what’s in the car in terms of the user experience, the intelligence, the driving experience – that is all being, if you like, enabled by semiconductors and software these days, so that content is increasing year by year.”

The significance of better performance in the auto sector is high because it was one segment where Analog Devices was struggling. Its Q32020 revenue from the auto segment dropped by 29% as the pandemic-led factory closures weighed in on the company’s quarterly results.

Another important trend from Analog Devices’ perspective in the auto industry is the shift towards electric vehicles. The company has battery management devices in its product portfolios and is poised to benefit from the increasing penetration of electric vehicles. According to Mr. Roche, “We’re in the very early innings of the electric car, but my sense is over the next 10 years, perhaps 20% of vehicles will be electric up from kind of 1% or 2% today.”

Other high performing semiconductor stocks to buy are Advanced Micro Devices (AMD) and Skyworks Solutions (SWKS).


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