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ADI vs LRCX
Which Stock Would AI Choose? Analog Devices (ADI) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- Analog Devices (ADI) and Lam Research (LRCX) both operate in the semiconductor ecosystem but target different segments: ADI focuses on analog and mixed-signal chips for industrial and communications applications, while LRCX provides critical wafer fabrication equipment.
- Over recent weeks, LRCX has demonstrated stronger year-to-date momentum with returns exceeding 90%, compared to ADI’s approximately 44% YTD performance.
- ADI is preparing to report fiscal Q3 2026 results on August 19, with analysts projecting revenue of $3.92 billion and EPS of $3.33, following a record Q2.
- LRCX delivered record fiscal Q4 2026 results in late July, with revenue of $6.72 billion and raised guidance, driven by sustained AI-related demand for semiconductor manufacturing tools.
- Both stocks have benefited from broader semiconductor sector recovery, though LRCX’s equipment exposure ties it more directly to capital expenditure cycles in advanced chip production.
- Market sentiment remains constructive for both, with analyst price targets reflecting optimism, yet valuation and cyclical risks differ based on end-market exposure.
Introduction
Analog Devices (ADI) and Lam Research (LRCX) represent distinct yet complementary plays within the semiconductor industry, making their comparison relevant for investors seeking exposure to technology hardware and equipment cycles. ADI supplies analog integrated circuits used across industrial, automotive, and communications markets, while LRCX manufactures deposition and etch equipment essential for producing advanced semiconductors. Traders and portfolio managers focused on relative performance, sector rotation, and AI-driven demand trends may find this analysis useful when evaluating positioning in a market environment shaped by ongoing technological upgrades and capital spending patterns.
ADI Overview and Recent Performance
Analog Devices designs and manufactures analog, mixed-signal, and digital signal processing integrated circuits. In recent market activity, the stock has traded near $389, reflecting gains of roughly 2% on August 14 amid broader tech sector movements. The company reported record fiscal Q2 2026 revenue of $3.62 billion, representing 37% year-over-year growth, supported by strength in industrial and communications end markets as well as emerging AI data center demand. Sentiment has been influenced by upcoming fiscal Q3 earnings expected on August 19 and analyst commentary highlighting margin expansion and free cash flow generation. Recent weeks have shown measured price appreciation as investors position ahead of the report, with the stock maintaining a solid YTD advance near 44%.
LRCX Overview and Recent Performance
Lam Research develops and supplies equipment used in the fabrication of semiconductor devices, including etch and deposition systems. Following its fiscal Q4 2026 earnings release in late July, the stock has exhibited notable strength, with recent closes around $332 and single-day gains exceeding 4% in mid-August sessions. The company posted record revenue of $6.72 billion for the quarter, accompanied by gross margins near 52% and an upward revision to long-term margin targets. Performance has been buoyed by persistent AI-related investment in wafer fabrication capacity. In recent weeks, the shares have posted solid gains, contributing to YTD returns approaching 94%, as market participants respond to positive guidance and industry-wide equipment spending forecasts.
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Head-to-Head Comparison
Analog Devices (ADI) and Lam Research (LRCX) differ fundamentally in business model: ADI generates revenue through the sale of semiconductor components integrated into end products, whereas LRCX derives income from capital equipment sold to chip manufacturers. Growth drivers for ADI center on analog content expansion in industrial and communications applications, while LRCX benefits directly from elevated wafer fab equipment spending tied to advanced node production and AI infrastructure buildout. Recent momentum has favored LRCX, with stronger YTD returns and immediate post-earnings reaction, compared with ADI’s steadier but more moderate advance ahead of its earnings. Risk factors include ADI’s sensitivity to industrial cyclicality and LRCX’s exposure to semiconductor capital expenditure volatility. Sector exposure places both within technology hardware, yet LRCX maintains closer linkage to foundry and memory capacity expansions. Market sentiment appears broadly positive for both, supported by AI tailwinds, though relative valuation and earnings visibility create distinct trade-offs for investors evaluating portfolio allocation.
Tickeron AI Verdict
Based on observable factors including recent trend consistency, earnings momentum, and positioning within AI-related supply chains, Tickeron’s AI models would currently assign a modestly higher probability of favorable near-term performance to Lam Research (LRCX) relative to Analog Devices (ADI). LRCX’s record quarterly results and raised guidance reflect stronger immediate catalyst alignment, while ADI’s upcoming earnings introduce an element of uncertainty. This assessment remains probabilistic and subject to shifts in broader market conditions or new data.
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.
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 undervalued. 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 whileLRCX’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, 3 bearish.
- LRCX’s TA Score: 4 bullish, 4 bearish.
Price Growth
ADI (@Semiconductors) experienced а -4.04% price change this week, while LRCX (@Electronic Production Equipment) price change was -7.85% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -4.78%. For the same industry, the average monthly price growth was -10.12%, and the average quarterly price growth was +40.74%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -9.66%. For the same industry, the average monthly price growth was -18.29%, and the average quarterly price growth was +20.91%.
Reported Earning Dates
ADI is expected to report earnings on Dec 01, 2026.
LRCX is expected to report earnings on Oct 21, 2026.
Industries' Descriptions
@Semiconductors (-4.78% 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 (-9.66% 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.
| ADI | LRCX | ADI / LRCX | |
| Capitalization | 172B | 361B | 48% |
| EBITDA | 7.03B | 8.07B | 87% |
| Gain YTD | 32.335 | 68.752 | 47% |
| P/E Ratio | 42.25 | 50.06 | 84% |
| Revenue | 13.9B | 21.7B | 64% |
| Total Cash | 1.36B | 1.68B | 81% |
| Total Debt | 9.12B | 3.73B | 244% |
ADI | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 73 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 55 Fair valued | 81 Overvalued | |
PROFIT vs RISK RATING 1..100 | 19 | 35 | |
SMR RATING 1..100 | 63 | 17 | |
PRICE GROWTH RATING 1..100 | 53 | 38 | |
P/E GROWTH RATING 1..100 | 82 | 7 | |
SEASONALITY SCORE 1..100 | 65 | 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 (55) in the Semiconductors industry is in the same range as LRCX (81) 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 (19) in the Semiconductors industry is in the same range as LRCX (35) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's SMR Rating (17) 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.
LRCX's Price Growth Rating (38) in the Electronic Production Equipment industry is in the same range as ADI (53) in the Semiconductors industry. This means that LRCX’s stock grew similarly to ADI’s over the last 12 months.
LRCX's P/E Growth Rating (7) in the Electronic Production Equipment industry is significantly better than the same rating for ADI (82) in the Semiconductors industry. This means that LRCX’s stock grew significantly faster than ADI’s over the last 12 months.
| ADI | LRCX | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 81% | 4 days ago 83% |
| Stochastic ODDS (%) | 2 days ago 69% | 2 days ago 83% |
| Momentum ODDS (%) | 2 days ago 58% | 2 days ago 62% |
| MACD ODDS (%) | 2 days ago 65% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 61% | 2 days ago 63% |
| TrendMonth ODDS (%) | 2 days ago 63% | 2 days ago 69% |
| Advances ODDS (%) | N/A | 14 days ago 84% |
| Declines ODDS (%) | 15 days ago 55% | 2 days ago 64% |
| BollingerBands ODDS (%) | 7 days ago 75% | N/A |
| Aroon ODDS (%) | 2 days ago 54% | 2 days ago 81% |
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