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ADI vs LRCX
Which Stock Would AI Choose? Analog Devices (ADI) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- ADI (Analog Devices) is a diversified analog and mixed-signal chipmaker, while LRCX (Lam Research) supplies wafer fabrication equipment used to manufacture chips.
- Both stocks have delivered strong year-to-date gains, though LRCX has posted larger gains with higher volatility tied to AI-driven memory spending.
- ADI's momentum has been anchored in industrial recovery and surging data center demand, while LRCX's performance hinges on wafer fabrication equipment (WFE) spending and memory upcycles.
- LRCX trades at a richer earnings multiple, and its recent multi-session pullback reflects investor caution about the sustainability of AI infrastructure spending.
- ADI offers broader end-market diversification and a steadier dividend profile, while LRCX carries higher cyclical leverage and a more concentrated AI-memory exposure.
- Analyst consensus is broadly constructive on both names, but relative positioning and risk profiles differ meaningfully.
Introduction
Investors tracking the semiconductor complex frequently weigh diversified component suppliers against the equipment makers that enable chip production. This stock comparison examines two prominent players: ADI, a leader in analog and mixed-signal integrated circuits, and LRCX, a major supplier of deposition and etch systems used in semiconductor fabrication. While both companies are direct beneficiaries of artificial intelligence (AI) infrastructure buildout, they occupy different positions in the value chain and carry distinct risk-and-reward profiles. Traders focused on momentum and trend consistency, as well as longer-horizon investors evaluating relative performance and market positioning, may find this comparison a useful framework for understanding how these two semiconductor equities are behaving in the current market environment.
ADI Overview and Recent Performance
ADI, or Analog Devices, Inc., designs and sells analog, mixed-signal, and digital signal processing semiconductors that connect the physical and digital worlds across industrial, automotive, communications, consumer, and healthcare markets. The company generated more than $11 billion in revenue in fiscal 2025 and has emphasized its role in the "Intelligent Edge."
In recent market activity, ADI shares have climbed substantially, reflecting a combination of recovering industrial demand and accelerating data center sales. The company's most recent quarterly results showed record revenue led by its industrial and data center businesses, with data center revenue — now representing more than three-quarters of its communications segment — growing sharply on strength in optical and power portfolios. Sentiment has also been supported by ADI's planned acquisition of Empower Semiconductor, which is expected to expand its power technology portfolio for AI accelerators. Analyst coverage remains favorable, with a consensus "Strong Buy" rating and price targets that imply continued upside. Broader language in recent weeks points to a stock riding a broadening industrial recovery alongside durable AI infrastructure exposure.
LRCX Overview and Recent Performance
LRCX, or Lam Research Corporation, is a global supplier of wafer fabrication equipment and services, specializing in deposition and etch systems used by memory makers, foundries, and integrated device manufacturers. The company's fortunes are closely tied to semiconductor capital spending cycles, particularly in memory technologies such as dynamic random-access memory (DRAM) and NAND flash.
Lam Research has posted a powerful run over the past year, with year-to-date gains that outpaced the broader semiconductor industry. Record quarterly revenue and rising profitability have been driven by AI-related demand for advanced memory, including high-bandwidth memory (HBM) and advanced packaging. Management raised its 2026 wafer fabrication equipment (WFE) outlook, reflecting stronger customer spending. In recent weeks, however, LRCX shares entered a notable multi-session pullback as investors reassessed the pace of AI spending, even as the stock remained sharply higher for the year. The company has also been active in returning capital, repurchasing shares and raising its dividend, which underscores confidence in cash generation despite near-term cyclical questions.
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Head-to-Head Comparison
The core contrast between these two stocks lies in their position along the semiconductor value chain and their sensitivity to the same AI theme. ADI is a diversified component supplier whose revenue is spread across industrial, automotive, and communications end markets, giving it comparatively smoother demand and a steady dividend. Its recent momentum has been broad-based, supported by both an industrial recovery and surging data center content.
LRCX, by contrast, is a leveraged play on semiconductor capital expenditures. Its growth is more concentrated in memory and advanced packaging, which can produce larger swings in both directions. Valuation also differs: LRCX trades at a higher price-to-earnings (P/E) multiple, and its recent multi-session decline highlights the cyclical risk tied to AI spending expectations, whereas ADI's forward P/E sits closer to industry norms. On market sentiment, both carry "Strong Buy" analyst consensus, but LRCX's richer multiple and sharper pullback suggest a higher bar for continued outperformance, while ADI's broader diversification implies a more defensive tilt within the same AI-led sector.
Tickeron AI Verdict
Based on observable factors such as trend consistency, stability, catalysts, and relative positioning, Tickeron's AI would likely favor ADI in the current environment. ADI has demonstrated steadier, more diversified momentum, supported by an industrial recovery and durable data center demand, with a less extreme valuation profile and a lower-beta risk character. LRCX offers stronger cyclical upside and remains an attractive long-term AI-memory beneficiary, but its recent multi-session decline and richer multiple introduce greater short-term uncertainty. This assessment is probabilistic rather than definitive, reflecting the balance of trend quality and volatility rather than a forecast of future returns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ADI is a StrongBuy and LRCX is a Hold.
Momentum Indicator for ADI turns positive, indicating new upward trend
ADI saw its Momentum Indicator move above the 0 level on October 26, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 105 similar instances where the indicator turned positive. In 72 of the 105 cases, the stock moved higher in the following days. The odds of a move higher are at 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for ADI just turned positive on October 28, 2026. Looking at past instances where ADI's MACD turned positive, the stock continued to rise in 29 of 52 cases over the following month. The odds of a continued upward trend are 56%.
Following a +1.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADI advanced for three days, in 203 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 129 of 224 cases where ADI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.
Bearish Trend Analysis
The 10-day RSI Indicator for ADI moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In 25 of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at 71%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 39 of 66 cases where ADI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 59%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
ADI broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. ADI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 63 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 69 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.063) is normal, around the industry mean (6.097). P/E Ratio (49.562) is within average values for comparable stocks, (18.355). Projected Growth (PEG Ratio) (0.591) is also within normal values, averaging (3.803). Dividend Yield (0.010) settles around the average of (0.012) among similar stocks. P/S Ratio (12.804) is also within normal values, averaging (46.468).
LRCX's RSI Indicator recovers from oversold territory
The RSI Indicator for LRCX moved out of oversold territory on November 03, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 19 similar instances when the indicator left oversold territory. In 17 of the 19 cases the stock moved higher. This puts the odds of a move higher at 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +5.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in 272 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
LRCX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LRCX as a result. In 61 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for LRCX turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 57 similar instances when the indicator turned negative. In 37 of the 57 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
LRCX moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LRCX crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 77%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LRCX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
The Aroon Indicator for LRCX entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 46 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. LRCX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LRCX's P/B Ratio (23.152) is very high in comparison to the industry average of (6.389). P/E Ratio (39.848) is within average values for comparable stocks, (83.490). LRCX's Projected Growth (PEG Ratio) (1.463) is slightly higher than the industry average of (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (14.620) is also within normal values, averaging (27.897).
ADI | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 28 | 5 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 9 | 46 | |
SMR RATING 1..100 | 63 | 18 | |
PRICE GROWTH RATING 1..100 | 41 | 64 | |
P/E GROWTH RATING 1..100 | 69 | 31 | |
SEASONALITY SCORE 1..100 | n/a | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ADI's Valuation (74) in the Semiconductors industry is in the same range as LRCX (86) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to LRCX’s over the last 12 months.
ADI's Profit vs Risk Rating (9) in the Semiconductors industry is somewhat better than the same rating for LRCX (46) in the Electronic Production Equipment industry. This means that ADI’s stock grew somewhat faster than LRCX’s over the last 12 months.
LRCX's SMR Rating (18) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (63) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than ADI’s over the last 12 months.
ADI's Price Growth Rating (41) in the Semiconductors industry is in the same range as LRCX (64) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's P/E Growth Rating (31) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (69) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than ADI’s over the last 12 months.
| ADI | LRCX | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 71% | 1 day ago 89% |
| Stochastic ODDS (%) | 1 day ago 59% | 1 day ago 79% |
| Momentum ODDS (%) | 1 day ago 69% | 1 day ago 74% |
| MACD ODDS (%) | 1 day ago 56% | 1 day ago 65% |
| TrendWeek ODDS (%) | 1 day ago 62% | 1 day ago 64% |
| TrendMonth ODDS (%) | 1 day ago 62% | 1 day ago 71% |
| Advances ODDS (%) | 6 days ago 63% | 6 days ago 84% |
| Declines ODDS (%) | 2 days ago 57% | 2 days ago 65% |
| BollingerBands ODDS (%) | 1 day ago 50% | 1 day ago 82% |
| Aroon ODDS (%) | 1 day ago 58% | 1 day ago 70% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ADI’s FA Score shows that 1 FA rating(s) are green while LRCX’s FA Score has 2 green FA rating(s).
- ADI’s FA Score: 1 green, 4 red.
- LRCX’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ADI’s TA Score shows that 4 TA indicator(s) are bullish while LRCX’s TA Score has 4 bullish TA indicator(s).
- ADI’s TA Score: 4 bullish, 4 bearish.
- LRCX’s TA Score: 4 bullish, 6 bearish.
Price Growth
ADI (@Semiconductors) experienced а -1.31% price change this week, while LRCX (@Electronic Production Equipment) price change was -4.21% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -7.30%. For the same industry, the average monthly price growth was -22.76%, and the average quarterly price growth was -21.20%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -6.47%. For the same industry, the average monthly price growth was -27.76%, and the average quarterly price growth was -31.19%.
Reported Earning Dates
ADI is expected to report earnings on Nov 24, 2026.
LRCX is expected to report earnings on Jan 27, 2027.
Industries' Descriptions
@Semiconductors (-7.30% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
@Electronic Production Equipment (-6.47% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
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ADI and
Correlation & Price change
A.I.dvisor indicates that over the last year, ADI has been closely correlated with TXN. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADI jumps, then TXN could also see price increases.
| Ticker / NAME | Correlation To ADI | 1D Price Change % | ||
|---|---|---|---|---|
| ADI | 100% | +1.68% | ||
| TXN - ADI | 82% Closely correlated | +3.47% | ||
| MCHPP - ADI | 81% Closely correlated | +2.49% | ||
| MCHP - ADI | 80% Closely correlated | +2.35% | ||
| LRCX - ADI | 79% Closely correlated | +1.39% | ||
| KLAC - ADI | 79% Closely correlated | +2.02% | ||
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