Analog Devices receives Buy rating due to expanding content in AI infrastructure: Roth

What happened

Roth initiated coverage of Analog Devices with a Buy rating and set a $505 price target, citing the company’s growing role in AI infrastructure. Roth expects Communications revenue to rise 43% in fiscal 2027 and 25% in fiscal 2028; the company is due to report fourth-quarter fiscal 2026 results on November 24.

Confirmed

Global impact / market context

If Roth’s growth expectations are met, higher demand for data-center communications components could lift Analog Devices’ sales and support its reported 74% gross margins, the share of revenue remaining after direct production costs. The rating and target reflect the analyst’s view, not a guaranteed outcome.

Analyst inference

The article links the outlook to strong recent Communications growth, with data centers making up about 80% of that segment, and to rising optical and power demand. Investors can compare the coming results with forecasts, while recognizing Roth’s projections differ from confirmed results.

Analyst inference

What to watch

1. Analog Devices’ November 24 fiscal fourth-quarter report could show whether revenue and adjusted earnings are tracking the article’s consensus estimates of $4.32 billion and $3.88 per share. Confirmed
2. Roth expects Communications revenue to grow 43% in fiscal 2027 and 25% in fiscal 2028; these are analyst forecasts, not company-reported results. Confirmed
3. Check whether optical and power demand, including data-center designs, translates into reported sales growth and sustained gross margins; weaker conversion could undermine the rating’s growth rationale. Analyst inference

Evidence

• seekingalpha.com