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ADI vs TXN
Which Stock Would AI Choose? Analog Devices (ADI) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- Both ADI and TXN are leading analog semiconductor companies with exposure to industrial, communications, and automotive markets.
- Analog Devices reported record fiscal Q2 2026 revenue of $3.62 billion, reflecting 37% year-over-year growth driven by industrial and AI-related demand.
- Texas Instruments posted Q2 2026 revenue of $5.46 billion, up 23% year-over-year, with a beat-and-raise quarter and continued shareholder returns exceeding $5.8 billion over the past year.
- Recent market activity shows both stocks benefiting from broader semiconductor sector recovery, though ADI trades near the upper end of its 52-week range ahead of its August 19 earnings release.
- Relative performance highlights trade-offs: TXN offers scale and consistent dividend returns, while ADI emphasizes higher-margin precision analog products.
- Market sentiment remains constructive for both amid improving end-market conditions, with limited differentiation in China exposure or overall cyclical positioning.
Introduction
Analog Devices (ADI) and Texas Instruments (TXN) represent two established leaders in the analog and mixed-signal semiconductor space. Investors and traders frequently compare the pair because they share similar end markets, cyclical exposure, and competitive dynamics within the broader technology sector. This analysis examines recent performance, business fundamentals, and market positioning to assist those evaluating relative opportunities in a recovering semiconductor environment. The comparison is particularly relevant for portfolio managers seeking diversified exposure to industrial and communications trends without heavy reliance on memory or logic chip cycles.
ADI Overview and Recent Performance
Analog Devices designs high-performance analog, mixed-signal, and digital signal processing solutions used across industrial, communications, automotive, and consumer applications. In recent weeks, the stock has reflected positive momentum tied to the company’s fiscal Q2 2026 results, which delivered record revenue of $3.62 billion, a 37% year-over-year increase. Growth was supported by rebounding industrial demand and expanding AI data center activity. With its third-quarter earnings scheduled for August 19, investor attention has focused on whether the strong sequential trends will continue. Broader market activity has kept shares trading near the upper portion of their 52-week range, supported by analyst expectations for continued margin expansion and free cash flow generation.
TXN Overview and Recent Performance
Texas Instruments manufactures a broad portfolio of analog and embedded processing products serving industrial, automotive, personal electronics, and communications infrastructure markets. The company reported second-quarter 2026 revenue of $5.46 billion, representing 23% year-over-year growth and a beat on both top and bottom lines. Management raised guidance following the release, highlighting operational leverage and healthy order trends. Over the past year, TXN has returned more than $5.8 billion to shareholders through dividends and buybacks. Recent market activity shows the shares benefiting from the same semiconductor cyclical recovery observed across peers, with price action remaining within a wide 52-week range amid steady institutional interest in its scale and manufacturing footprint.
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Head-to-Head Comparison
Both companies operate in the analog semiconductor segment, yet differences in scale and product focus create distinct profiles. TXN benefits from greater revenue breadth and vertical integration in manufacturing, supporting more stable margins through cycles and a higher dividend payout. ADI concentrates on higher-precision, higher-margin signal-processing solutions, which can deliver stronger operating leverage during periods of industrial or communications recovery. Recent momentum favors ADI on a percentage growth basis following its outsized Q2 result, while TXN has demonstrated more consistent quarterly execution and capital returns. Sector exposure overlaps significantly in industrial and automotive end markets, though ADI carries relatively greater communications weighting. Risk factors include shared sensitivity to global supply chains and end-market demand fluctuations, with neither exhibiting material differentiation in geographic revenue concentration.
Tickeron AI Verdict
Based on observable factors including recent earnings consistency, trend stability, and relative positioning ahead of upcoming catalysts, Tickeron’s AI models currently assign a modestly higher probability of outperformance to TXN over the near term. Its demonstrated beat-and-raise execution and shareholder return program provide a visible anchor during periods of sector rotation, though ADI retains upside potential tied to its earnings release and precision-analog exposure.
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 TXN 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 whileTXN’s FA Score has 1 green FA rating(s).
- ADI’s FA Score: 1 green, 4 red.
- TXN’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 4 TA indicator(s) are bullish while TXN’s TA Score has 3 bullish TA indicator(s).
- ADI’s TA Score: 4 bullish, 3 bearish.
- TXN’s TA Score: 3 bullish, 4 bearish.
Price Growth
ADI (@Semiconductors) experienced а -4.04% price change this week, while TXN (@Semiconductors) price change was -2.66% 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%.
Reported Earning Dates
ADI is expected to report earnings on Dec 01, 2026.
TXN is expected to report earnings on Oct 27, 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.
| ADI | TXN | ADI / TXN | |
| Capitalization | 172B | 233B | 74% |
| EBITDA | 7.03B | 9.68B | 73% |
| Gain YTD | 32.335 | 49.338 | 66% |
| P/E Ratio | 42.25 | 38.72 | 109% |
| Revenue | 13.9B | 19.5B | 71% |
| Total Cash | 1.36B | 7B | 19% |
| Total Debt | 9.12B | 14.1B | 65% |
ADI | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 55 Fair valued | 63 Fair valued | |
PROFIT vs RISK RATING 1..100 | 19 | 44 | |
SMR RATING 1..100 | 63 | 28 | |
PRICE GROWTH RATING 1..100 | 53 | 53 | |
P/E GROWTH RATING 1..100 | 82 | 36 | |
SEASONALITY SCORE 1..100 | 65 | 75 |
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 TXN (63). This means that ADI’s stock grew similarly to TXN’s over the last 12 months.
ADI's Profit vs Risk Rating (19) in the Semiconductors industry is in the same range as TXN (44). This means that ADI’s stock grew similarly to TXN’s over the last 12 months.
TXN's SMR Rating (28) in the Semiconductors industry is somewhat better than the same rating for ADI (63). This means that TXN’s stock grew somewhat faster than ADI’s over the last 12 months.
TXN's Price Growth Rating (53) in the Semiconductors industry is in the same range as ADI (53). This means that TXN’s stock grew similarly to ADI’s over the last 12 months.
TXN's P/E Growth Rating (36) in the Semiconductors industry is somewhat better than the same rating for ADI (82). This means that TXN’s stock grew somewhat faster than ADI’s over the last 12 months.
| ADI | TXN | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 81% | N/A |
| Stochastic ODDS (%) | 2 days ago 69% | 2 days ago 69% |
| Momentum ODDS (%) | 2 days ago 58% | 2 days ago 66% |
| MACD ODDS (%) | 2 days ago 65% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 61% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 63% | 2 days ago 60% |
| Advances ODDS (%) | N/A | 8 days ago 59% |
| Declines ODDS (%) | 15 days ago 55% | 11 days ago 58% |
| BollingerBands ODDS (%) | 7 days ago 75% | 2 days ago 71% |
| Aroon ODDS (%) | 2 days ago 54% | 2 days ago 59% |
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