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ADI vs STM
Which Stock Would AI Choose? Analog Devices (ADI) vs. STMicroelectronics (STM) Stock Comparison
Key Takeaways
- Analog Devices (ADI) combines a larger market capitalization with materially stronger profitability, while STMicroelectronics (STM) is recovering from a cyclical trough with faster revenue growth off a smaller base.
- Both companies are leveraged to artificial intelligence (AI) infrastructure and data-center demand, but ADI has broader exposure to high-margin industrial and instrumentation end markets.
- STM has shown higher volatility, with its share price having surged sharply before pulling back well below its 52-week high.
- ADI has recently reported record quarterly results and boosted its outlook, while STM is guiding for continued sequential growth into late 2026.
- Valuation and profitability metrics point to a clear contrast: ADI trades at a more conventional earnings multiple, whereas STM carries a high trailing price-to-earnings (P/E) ratio because its near-term earnings remain depressed.
Introduction
Analog Devices and STMicroelectronics are two of the world's leading analog and mixed-signal semiconductor suppliers, yet they occupy different positions in the market and appeal to different kinds of investors. This stock comparison is relevant for traders and investors evaluating how a diversified, high-margin U.S. analog leader stacks up against a diversified European chipmaker in the midst of a cyclical recovery. Both companies are increasingly tied to the same megatrends—AI infrastructure, industrial automation, automotive electrification, and electrification of the grid—making their relative performance and market positioning a useful lens for understanding the broader semiconductor sector.
ADI Overview and Recent Performance
Analog Devices, Inc. designs and manufactures analog, mixed-signal, and digital signal processing semiconductors that bridge the physical and digital worlds, serving industrial, automotive, communications, healthcare, and consumer markets. The company is a structural leader in high-performance sensing, signal chain, and power management, with an annual revenue base exceeding $11 billion.
In recent market activity, ADI has delivered record quarterly results, with revenue rising roughly 40% year over year on strength in data-center and industrial demand, and earnings per share (EPS) expanding sharply. The company has also issued a record revenue outlook, reflecting sustained momentum across automation, robotics, healthcare, and AI-adjacent power delivery. Sentiment has been further supported by the completed acquisition of Empower Semiconductor, which strengthens its position in power delivery for AI systems. With a profit margin near 30% and a beta (a measure of volatility relative to the market) of about 1.2, ADI offers a blend of profitability and growth that has kept it trading near the upper portion of its 52-week range.
STM Overview and Recent Performance
STMicroelectronics N.V. is a global semiconductor leader headquartered in Geneva, Switzerland, with a diversified portfolio spanning automotive, industrial, personal electronics, and communications equipment and computer peripherals (CECP). The company is a top supplier of general-purpose microcontrollers and has growing exposure to silicon carbide, silicon photonics, and micro-electromechanical systems (MEMS) sensors.
In recent quarters, STM has reported a strong cyclical recovery, with revenue rising by double-digit percentages year over year, driven by improving automotive and industrial demand plus accelerating AI data-center programs. Management has raised its data-center revenue ambitions and expanded collaborations with major cloud and AI platform providers. Despite this recovery, profitability remains comparatively thin, with an operating margin still in the mid-single digits as the company works through a manufacturing transformation and capacity underutilization. The stock has been notably volatile: after a sharp run-up, STM pulled back well below its 52-week high, and its higher beta (around 1.5) reflects greater sensitivity to market swings and to execution risk in its margin recovery.
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Head-to-Head Comparison
The most striking contrast between the two names is profitability. ADI consistently generates net margins near 30% and strong free cash flow, reflecting its premium positioning in high-value analog applications. STM, by comparison, is earlier in its recovery, with net margins in the low single digits as underutilization charges and restructuring costs weigh on results.
Growth drivers also differ in emphasis. ADI leans on broad industrial automation, instrumentation, healthcare, and power delivery for AI servers. STM derives a larger share of demand from automotive, general-purpose microcontrollers, and silicon photonics for AI connectivity. Both are exposed to cyclicality, but STM has historically been more sensitive to automotive production cycles and European macroeconomic conditions, while ADI's diversified industrial base has provided more stability.
On valuation, ADI trades at a more moderate trailing P/E, whereas STM's trailing P/E appears elevated simply because near-term earnings are still recovering. Market sentiment reflects this: ADI has trended upward with relatively consistent momentum, while STM has experienced sharper swings in both directions, a distinction visible in its higher beta and wider trading range.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings stability, profitability, and relative positioning, Tickeron's AI would likely favor ADI in the current environment. The stock's record results, robust margins, and steady momentum suggest a more consistent trend profile with lower volatility than STM. While STM offers a potentially stronger cyclical-recovery catalyst and meaningful AI-related upside, its thinner margins and higher volatility introduce greater execution risk. Accordingly, an AI-driven assessment would probably assign a higher confidence level to ADI's relative positioning, though both names remain exposed to the broader semiconductor cycle.
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 STM is a Hold.
ADI in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 22, 2026
ADI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 26 of 33 cases where ADI's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 40 of 64 cases where ADI'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 62%.
ADI moved above its 50-day moving average on September 18, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ADI crossed bullishly above the 50-day moving average on September 24, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 62%.
Following a +2.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADI advanced for three days, in 202 of 323 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 127 of 226 cases where ADI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
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 34 similar instances where the indicator moved out of overbought territory. In 21 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 62%.
The Momentum Indicator moved below the 0 level on October 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ADI as a result. In 70 of 105 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.
The Moving Average Convergence Divergence Histogram (MACD) for ADI turned negative on October 14, 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 51 similar instances when the indicator turned negative. In 35 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
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%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 18 (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 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 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 Valuation Rating of 71 (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 (5.571) is normal, around the industry mean (6.008). P/E Ratio (45.544) is within average values for comparable stocks, (20.098). Projected Growth (PEG Ratio) (0.591) is also within normal values, averaging (3.761). 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 (45.794).
The Tickeron PE Growth Rating for this company is 72 (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.
STM in downward trend: 10-day moving average broke below 50-day moving average on October 16, 2026
The 10-day moving average for STM 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 14 of 16 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 88%.
Technical Analysis (Indicators)
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 STM as a result. In 71 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
The Moving Average Convergence Divergence Histogram (MACD) for STM 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 51 similar instances when the indicator turned negative. In 43 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 84%.
STM moved below its 50-day moving average on October 09, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where STM 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 74%.
The Aroon Indicator for STM entered a downward trend on September 23, 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.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for STM's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where STM advanced for three days, in 206 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
STM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 1 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (2.304) is normal, around the industry mean (6.008). STM's P/E Ratio (-948.600) is considerably lower than the industry average of (20.098). Projected Growth (PEG Ratio) (0.195) is also within normal values, averaging (3.761). Dividend Yield (0.007) settles around the average of (0.012) among similar stocks. P/S Ratio (3.370) is also within normal values, averaging (45.794).
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 55 (best 1 - 100 worst), indicating steady price growth. STM’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 91 (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.
The Tickeron PE Growth Rating for this company is 100 (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 Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. STM’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 78, placing this stock worse than average.
ADI | STM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 83 | 80 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 1 Undervalued | |
PROFIT vs RISK RATING 1..100 | 14 | 100 | |
SMR RATING 1..100 | 63 | 91 | |
PRICE GROWTH RATING 1..100 | 18 | 55 | |
P/E GROWTH RATING 1..100 | 72 | 100 | |
SEASONALITY SCORE 1..100 | 50 | 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.
STM's Valuation (1) in the Semiconductors industry is significantly better than the same rating for ADI (71). This means that STM’s stock grew significantly faster than ADI’s over the last 12 months.
ADI's Profit vs Risk Rating (14) in the Semiconductors industry is significantly better than the same rating for STM (100). This means that ADI’s stock grew significantly faster than STM’s over the last 12 months.
ADI's SMR Rating (63) in the Semiconductors industry is in the same range as STM (91). This means that ADI’s stock grew similarly to STM’s over the last 12 months.
ADI's Price Growth Rating (18) in the Semiconductors industry is somewhat better than the same rating for STM (55). This means that ADI’s stock grew somewhat faster than STM’s over the last 12 months.
ADI's P/E Growth Rating (72) in the Semiconductors industry is in the same range as STM (100). This means that ADI’s stock grew similarly to STM’s over the last 12 months.
| ADI | STM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 62% | 1 day ago 75% |
| Stochastic ODDS (%) | 1 day ago 63% | 1 day ago 80% |
| Momentum ODDS (%) | 1 day ago 67% | 1 day ago 76% |
| MACD ODDS (%) | 1 day ago 69% | 1 day ago 84% |
| TrendWeek ODDS (%) | 1 day ago 61% | 1 day ago 72% |
| TrendMonth ODDS (%) | 1 day ago 64% | 1 day ago 74% |
| Advances ODDS (%) | 2 days ago 63% | 2 days ago 69% |
| Declines ODDS (%) | 4 days ago 57% | 7 days ago 74% |
| BollingerBands ODDS (%) | 1 day ago 79% | 1 day ago 86% |
| Aroon ODDS (%) | 1 day ago 56% | 1 day ago 65% |
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 STM’s FA Score has 1 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- STM’s FA Score: 1 green, 4 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 6 TA indicator(s) are bullish while STM’s TA Score has 4 bullish TA indicator(s).
- ADI’s TA Score: 6 bullish, 4 bearish.
- STM’s TA Score: 4 bullish, 6 bearish.
Price Growth
ADI (@Semiconductors) experienced а -4.50% price change this week, while STM (@Semiconductors) price change was +1.13% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -8.21%. For the same industry, the average monthly price growth was -19.91%, and the average quarterly price growth was -12.20%.
Reported Earning Dates
ADI is expected to report earnings on Nov 24, 2026.
STM is expected to report earnings on Oct 29, 2026.
Industries' Descriptions
@Semiconductors (-8.21% 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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STM and
Correlation & Price change
A.I.dvisor indicates that over the last year, STM has been closely correlated with MCHPP. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if STM jumps, then MCHPP could also see price increases.
| Ticker / NAME | Correlation To STM | 1D Price Change % | ||
|---|---|---|---|---|
| STM | 100% | -7.04% | ||
| MCHPP - STM | 72% Closely correlated | -3.04% | ||
| ADI - STM | 70% Closely correlated | -4.98% | ||
| ENTG - STM | 69% Closely correlated | -13.12% | ||
| ON - STM | 69% Closely correlated | -4.82% | ||
| MCHP - STM | 67% Closely correlated | -3.41% | ||
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