Analog Devices (ADI)

A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.

Chipmakers are likely to benefit from the One Big Beautiful Bill as they will be eligible for an investment tax credit, aiding their business.

One key metric to look for in a stock is an 80-plus Relative Strength Rating. STMicroelectronics stock clears that threshold, jumping to 81.

Analog Devices stock saw a welcome improvement to its Relative Strength (RS) Rating on Friday, with an increase from 70 to 73.

Semiconductors are the picks and shovels of modern technology. Compute-intensive AI workloads are also priming them for the next wave of secular growth, a trend that has supported the industry over the past six months as its 3.4% return has closely followed the S&P 500.

Its strength earned Microchip stock a Relative Strength Rating from 69 to 80 Monday, crossing above a key benchmark.

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the analog semiconductors stocks, including Analog Devices (NASDAQ:ADI) and its peers.

While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

Analog Devices is well-positioned to benefit from a long-term cyclical recovery in its end markets along with the AI boom.

Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.

Analysts raise ratings & price targets for Analog Devices after strong fiscal Q2 results & optimistic outlook. Industrials show solid recovery.

Join us in exploring the top gainers and losers within the S&P500 index one hour before the close of the markets on Thursday as we examine the latest happenings in today's session.