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ADI vs ON
Which Stock Would AI Choose? Analog Devices (ADI) vs. ON Semiconductor (ON) Stock Comparison
Key Takeaways
- ADI is the larger, higher-margin operator, while ON is a smaller turnaround story levered to AI data center power.
- Both companies are riding a broad analog and power semiconductor recovery, but their end-market mix and profitability profiles differ sharply.
- ADI recently posted record results and added AI power-management capabilities through a $1.5 billion acquisition.
- ON's AI data center revenue is expected to more than double in 2026, supported by new power-supply and silicon carbide design wins.
- ADI offers stronger margins and diversification; ON offers higher growth potential but thinner profitability and greater automotive concentration.
Introduction
Analog Devices, Inc. (ADI) and ON Semiconductor Corporation, commonly known as onsemi (ON), are two prominent names in the analog and power semiconductor market. Both supply the chips that convert, condition, and manage power across industrial, automotive, and data center applications, making them direct comparisons for investors tracking the semiconductor cycle and the artificial intelligence (AI) infrastructure buildout. This stock comparison examines their relative performance, market positioning, and recent momentum to help traders and investors understand where each company stands today and how their risk-reward profiles differ.
ADI Overview and Recent Performance
Analog Devices is a global semiconductor leader that bridges the physical and digital worlds with analog, digital, and software technologies deployed at the "Intelligent Edge." Its revenue spans industrial, automotive, communications, and consumer markets. In recent weeks, ADI has delivered record financial results, with fiscal second-quarter revenue of $3.62 billion, up roughly 37% year over year, and record non-GAAP (non-Generally Accepted Accounting Principles) earnings per share (EPS) of $3.09, up about 67%. Non-GAAP gross margin reached 73%, with an operating margin near 49%, reflecting strong pricing and favorable product mix.
Sentiment has been driven by accelerating data center demand, where power and optical products now account for more than 75% of the communications segment and grew over 90% year over year. ADI also announced a $1.5 billion cash acquisition of Empower Semiconductor to strengthen its AI data center power-management portfolio. The stock has climbed to 52-week highs in recent months and has risen sharply year to date, though shares pulled back after the latest earnings release as investors weighed sector-wide cyclicality.
ON Overview and Recent Performance
ON Semiconductor (onsemi) designs and manufactures power, analog, mixed-signal, and sensing solutions, with roughly half of revenue tied to automotive and a growing footprint in industrial and AI infrastructure. In its most recent quarter, ON reported revenue of $1.60 billion, up about 9% year over year, with non-GAAP EPS of $0.74, an increase of roughly 40%. Gross margin improved to about 39% on a non-GAAP basis as manufacturing utilization rose and the product mix strengthened.
ON's most prominent catalyst has been AI data center power, where management expects related revenue to more than double in 2026, supported by silicon carbide content and design wins across power-supply and battery-backup systems. The company also expanded its automotive and industrial reach through the roughly $5.7 billion acquisition of Synaptics, aimed at strengthening its sensing and connectivity portfolio. The shares have risen roughly a third year to date, reflecting the improving demand backdrop, though ON remains a smaller, lower-margin player than ADI.
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Head-to-Head Comparison
Although both companies serve the same broad semiconductor markets, their business models diverge in important ways. ADI operates a diversified, innovation-led model across industrial, automotive, communications, and consumer segments, which supports a roughly 73% non-GAAP gross margin and strong free cash flow. ON, by contrast, is more concentrated in automotive and power, with non-GAAP gross margin near 39% and a heavier reliance on a cyclical recovery.
Growth drivers also differ. ADI's momentum is anchored in broad-based industrial recovery plus rapid data center expansion, while ON's growth is more directly tied to AI power infrastructure and silicon carbide content gains. In terms of recent momentum, both stocks have advanced meaningfully, but ADI's larger scale and higher margins have supported a premium valuation, while ON trades at a lower forward price-to-earnings (P/E) multiple relative to its own history. Key risk factors include semiconductor cyclicality, automotive demand volatility, and execution on recent acquisitions for both companies.
Tickeron AI Verdict
Based on observable factors such as trend consistency, stability, catalysts, and relative positioning, Tickeron's AI would likely lean toward ADI at present. The company's record results, superior margins, broad end-market diversification, and sustained uptrend give it a more consistent and defensive profile. ON, however, presents a stronger recovery-growth narrative tied to AI power, and its momentum cannot be discounted. The AI's preference would likely tilt toward ADI for stability while recognizing ON as the higher-beta alternative for investors seeking greater cyclical upside.
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 ON 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 76 of the 105 cases, the stock moved higher in the following days. The odds of a move higher are at 72%.
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 36 of 53 cases over the following month. The odds of a continued upward trend are 68%.
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 135 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 60%.
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 has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 19 (best 1 - 100 worst), indicating outstanding 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 Seasonality Score of 41 (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 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 68 (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 73 (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 (6.024) is normal, around the industry mean (6.106). P/E Ratio (49.246) is within average values for comparable stocks, (17.186). Projected Growth (PEG Ratio) (0.591) is also within normal values, averaging (3.803). Dividend Yield (0.011) settles around the average of (0.012) among similar stocks. P/S Ratio (12.804) is also within normal values, averaging (46.468).
ON sees MACD Histogram just turned negative
ON saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 13, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 60 instances where the indicator turned negative. In 52 of the 60 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 87%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ON 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 32 similar instances where the indicator moved out of overbought territory. In 26 of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at 81%.
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ON as a result. In 76 of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
ON moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ON crossed bearishly below the 50-day moving average on October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 18 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 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ON 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 79%.
ON broke above its upper Bollinger Band on October 02, 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.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 53 of 65 cases where ON's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 82%.
Following a +8.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where ON advanced for three days, in 225 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 174 of 228 cases where ON Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 48 (best 1 - 100 worst), pointing to consistent 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 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 60 (best 1 - 100 worst), indicating steady price growth. ON’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 67 (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 (3.865) is normal, around the industry mean (6.106). P/E Ratio (46.539) is within average values for comparable stocks, (17.186). Projected Growth (PEG Ratio) (0.169) is also within normal values, averaging (3.803). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (4.337) is also within normal values, averaging (46.468).
The Tickeron Profit vs. Risk Rating rating for this company is 75 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ON’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 76 (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
ADI | ON | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | 67 Overvalued | |
PROFIT vs RISK RATING 1..100 | 9 | 75 | |
SMR RATING 1..100 | 63 | 76 | |
PRICE GROWTH RATING 1..100 | 19 | 60 | |
P/E GROWTH RATING 1..100 | 68 | 48 | |
SEASONALITY SCORE 1..100 | 41 | 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.
ON's Valuation (67) in the Semiconductors industry is in the same range as ADI (73). This means that ON’s stock grew similarly to ADI’s over the last 12 months.
ADI's Profit vs Risk Rating (9) in the Semiconductors industry is significantly better than the same rating for ON (75). This means that ADI’s stock grew significantly faster than ON’s over the last 12 months.
ADI's SMR Rating (63) in the Semiconductors industry is in the same range as ON (76). This means that ADI’s stock grew similarly to ON’s over the last 12 months.
ADI's Price Growth Rating (19) in the Semiconductors industry is somewhat better than the same rating for ON (60). This means that ADI’s stock grew somewhat faster than ON’s over the last 12 months.
ON's P/E Growth Rating (48) in the Semiconductors industry is in the same range as ADI (68). This means that ON’s stock grew similarly to ADI’s over the last 12 months.
| ADI | ON | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 71% | 3 days ago 81% |
| Stochastic ODDS (%) | 3 days ago 64% | 3 days ago 82% |
| Momentum ODDS (%) | 3 days ago 72% | 3 days ago 78% |
| MACD ODDS (%) | 3 days ago 68% | 3 days ago 87% |
| TrendWeek ODDS (%) | 3 days ago 63% | 3 days ago 77% |
| TrendMonth ODDS (%) | 3 days ago 62% | 3 days ago 77% |
| Advances ODDS (%) | 4 days ago 63% | 6 days ago 75% |
| Declines ODDS (%) | 14 days ago 57% | 3 days ago 79% |
| BollingerBands ODDS (%) | 3 days ago 52% | 3 days ago 83% |
| Aroon ODDS (%) | 3 days ago 60% | 3 days ago 76% |
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 2 FA rating(s) are green while ON’s FA Score has 0 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- ON’s FA Score: 0 green, 5 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 5 TA indicator(s) are bullish while ON’s TA Score has 3 bullish TA indicator(s).
- ADI’s TA Score: 5 bullish, 4 bearish.
- ON’s TA Score: 3 bullish, 7 bearish.
Price Growth
ADI (@Semiconductors) experienced а +6.66% price change this week, while ON (@Semiconductors) price change was -0.80% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -0.34%. For the same industry, the average monthly price growth was -18.87%, and the average quarterly price growth was -16.09%.
Reported Earning Dates
ADI is expected to report earnings on Nov 24, 2026.
ON is expected to report earnings on Nov 02, 2026.
Industries' Descriptions
@Semiconductors (-0.34% 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.
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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% | -3.73% | ||
| TXN - ADI | 82% Closely correlated | -3.40% | ||
| MCHPP - ADI | 81% Closely correlated | -4.37% | ||
| MCHP - ADI | 80% Closely correlated | -4.66% | ||
| LRCX - ADI | 79% Closely correlated | -6.01% | ||
| KLAC - ADI | 79% Closely correlated | -5.69% | ||
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