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ADI vs TXN
Which Stock Would AI Choose? Analog Devices (ADI) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- ADI delivered stronger recent revenue momentum, with sales up roughly 30% year over year in its latest reported quarter, versus about 10% for TXN.
- Both companies are riding a cyclical industrial recovery and expanding data center exposure, but their growth profiles and margins differ meaningfully.
- TXN is the larger analog chip maker by revenue and operates its own U.S.-based manufacturing, while ADI is more diversified across high-value industrial, automotive, and communications end markets.
- Valuation, inventory levels, and capital-intensity (how much a business must spend on facilities and equipment) are key trade-offs investors are weighing.
- AI-driven trend analysis leans toward the stock showing more consistent momentum and stronger relative positioning, as detailed below.
Introduction
Analog Devices and Texas Instruments are two of the world's most important analog semiconductor companies, producing the chips that convert real-world signals — temperature, sound, motion, and power — into digital data. Because they sit at the center of industrial, automotive, and communications supply chains, their results are often read as a barometer for the broader economy. This stock comparison is particularly relevant for investors seeking exposure to the ongoing semiconductor recovery and the buildout of AI (artificial intelligence) infrastructure, as well as for those comparing two quality franchises with different business models, growth drivers, and risk profiles.
ADI Overview and Recent Performance
ADI, or Analog Devices, Inc., is a global semiconductor leader that bridges the physical and digital worlds with analog, mixed-signal, digital, and power technologies. In recent weeks, the company reported strong results, with revenue rising roughly 30% year over year to about $3.16 billion, driven by standout performance in its industrial and communications segments. Management highlighted record results in automated test equipment (ATE) and a data center business that has grown more than 50% year over year for multiple consecutive quarters, reflecting rising demand tied to AI infrastructure. The company also raised its quarterly dividend by 11%, marking more than two decades of consecutive increases. Investor sentiment has improved as guidance came in above consensus, though inventory levels have risen, a point some analysts are watching closely.
TXN Overview and Recent Performance
TXN, or Texas Instruments Incorporated, is the world's largest analog chip maker by revenue, designing and manufacturing analog and embedded processing chips for industrial, automotive, personal electronics, and communications markets. In recent market activity, TXN reported revenue of about $4.42 billion, up roughly 10% year over year, with a modest miss on headline earnings but guidance that exceeded expectations. The standout development was data center momentum: management said data center orders grew around 70% year over year, and the company's new Sherman, Texas manufacturing facility is ramping ahead of schedule. Unlike many peers, TXN's largely U.S.-based manufacturing footprint has helped insulate it from tariff-related concerns. Industrial revenue rose nearly 20% year over year, reinforcing the view that a cyclical recovery is underway.
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Head-to-Head Comparison
The two companies differ most in business model and capital intensity. TXN pursues a vertically integrated strategy, manufacturing the majority of its own chips on 300-millimeter wafers — a capital-heavy approach that supports gross margins but pressures near-term free cash flow (the cash left after operating expenses and capital spending). ADI uses a more fab-lite model, relying on external foundries for some production, which has historically supported higher operating margins. On growth drivers, both benefit from industrial recovery and AI data center demand, but ADI's communications and ATE exposure has translated into faster recent top-line growth, while TXN's data center business is newer and scaling quickly off a smaller base. Risk profiles also differ: TXN carries elevated inventory relative to its history, while ADI faces a heavier automotive mix that can be sensitive to tariffs and China demand. In terms of relative performance, ADI has shown stronger recent earnings momentum, whereas TXN trades on the appeal of its manufacturing moat and expanding capacity.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, and relative positioning, Tickeron's AI analysis would likely favor ADI in the current environment. Its faster revenue growth, above-consensus guidance, rising margins, and multi-quarter data center momentum suggest a more consistent positive trend and clearer near-term catalysts. TXN retains structural advantages in manufacturing scale and U.S.-based capacity, but its softer headline results and higher inventory levels introduce more uncertainty into the near-term trend. This assessment reflects probabilistic positioning rather than a definitive prediction, and conditions can shift as new data emerges.
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 StrongBuy.
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 31 of 53 cases over the following month. The odds of a continued upward trend are 58%.
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 131 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 23 of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at 66%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 10 (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 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 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 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 (5.963) is normal, around the industry mean (5.894). P/E Ratio (48.743) is within average values for comparable stocks, (16.337). 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).
TXN's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for TXN turned positive on October 26, 2026. Looking at past instances where TXN's MACD turned positive, the stock continued to rise in 30 of 45 cases over the following month. The odds of a continued upward trend are 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 23, 2026. You may want to consider a long position or call options on TXN as a result. In 57 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 63%.
The 10-day moving average for TXN crossed bullishly above the 50-day moving average on September 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 18 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 39%.
Following a +1.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where TXN advanced for three days, in 180 of 291 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
The Aroon Indicator entered an Uptrend today. In 128 of 234 cases where TXN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 55%.
Bearish Trend Analysis
The 10-day RSI Indicator for TXN moved out of overbought territory on October 30, 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 27 similar instances where the indicator moved out of overbought territory. In 19 of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at 70%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TXN 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 60%.
TXN broke above its upper Bollinger Band on October 26, 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 PE Growth Rating for this company is 8 (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 Price Growth Rating for this company is 13 (best 1 - 100 worst), indicating outstanding price growth. TXN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 24 (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 SMR rating for this company is 29 (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 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 Valuation Rating of 80 (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: TXN's P/B Ratio (15.317) is slightly higher than the industry average of (5.894). P/E Ratio (45.691) is within average values for comparable stocks, (16.337). Projected Growth (PEG Ratio) (0.991) is also within normal values, averaging (3.803). Dividend Yield (0.020) settles around the average of (0.012) among similar stocks. P/S Ratio (12.255) is also within normal values, averaging (46.468).
ADI | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 25 | 24 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | 80 Overvalued | |
PROFIT vs RISK RATING 1..100 | 10 | 24 | |
SMR RATING 1..100 | 63 | 29 | |
PRICE GROWTH RATING 1..100 | 19 | 13 | |
P/E GROWTH RATING 1..100 | 69 | 8 | |
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 (73) in the Semiconductors industry is in the same range as TXN (80). This means that ADI’s stock grew similarly to TXN’s over the last 12 months.
ADI's Profit vs Risk Rating (10) in the Semiconductors industry is in the same range as TXN (24). This means that ADI’s stock grew similarly to TXN’s over the last 12 months.
TXN's SMR Rating (29) 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 (13) in the Semiconductors industry is in the same range as ADI (19). This means that TXN’s stock grew similarly to ADI’s over the last 12 months.
TXN's P/E Growth Rating (8) in the Semiconductors industry is somewhat better than the same rating for ADI (69). This means that TXN’s stock grew somewhat faster than ADI’s over the last 12 months.
| ADI | TXN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 66% | 2 days ago 70% |
| Stochastic ODDS (%) | 2 days ago 65% | 2 days ago 62% |
| Momentum ODDS (%) | 2 days ago 72% | 2 days ago 63% |
| MACD ODDS (%) | 2 days ago 58% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 65% |
| TrendMonth ODDS (%) | 2 days ago 62% | 2 days ago 59% |
| Advances ODDS (%) | 6 days ago 63% | 6 days ago 62% |
| Declines ODDS (%) | 2 days ago 57% | 16 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 50% | 2 days ago 67% |
| Aroon ODDS (%) | 2 days ago 58% | 2 days ago 55% |
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 TXN’s FA Score has 4 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- TXN’s FA Score: 4 green, 1 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 5 bullish TA indicator(s).
- ADI’s TA Score: 4 bullish, 4 bearish.
- TXN’s TA Score: 5 bullish, 4 bearish.
Price Growth
ADI (@Semiconductors) experienced а +1.21% price change this week, while TXN (@Semiconductors) price change was +1.80% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -7.29%. For the same industry, the average monthly price growth was -22.75%, and the average quarterly price growth was -21.15%.
Reported Earning Dates
ADI is expected to report earnings on Nov 24, 2026.
TXN is expected to report earnings on Jan 26, 2027.
Industries' Descriptions
@Semiconductors (-7.29% 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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TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with ADI. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then ADI could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | +0.39% | ||
| ADI - TXN | 82% Closely correlated | -1.02% | ||
| MCHPP - TXN | 81% Closely correlated | -1.50% | ||
| MCHP - TXN | 81% Closely correlated | -1.59% | ||
| ON - TXN | 75% Closely correlated | -2.18% | ||
| NXPI - TXN | 70% Closely correlated | -0.91% | ||
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