Key Takeaways ADI's data center business grew 50% in fiscal 2025, accelerating into fiscal 2026.ADI benefits from rising AI power needs across analog, mixed-signal and optical portfolios.ADI sees ATE and data center topping a $2B run rate, about 20% of revenues.Analog Devices (ADI) is experiencing robust traction for its data center products. ADI’s data center business is emerging as a key AI-driven growth engine and has increased 50% year over year in fiscal 2025 and continued to accelerate in the first qu ...

A strong stock as of late has been Analog Devices (ADI) . Shares have been marching higher, with the stock up 13.6% over the past month. The stock hit a new 52-week high of $363.2 in the previous session. Analog Devices has gained 33% since the start of the year compared to the 0.2% gain for the Zacks Computer and Technology sector and the 27.8% return for the Zacks Semiconductor - Analog and Mixed industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having ...

Core Insights - Analog Devices (ADI) shares have increased by 13.2% in the past month, outperforming the Zacks Semiconductor - Analog and Mixed industry which rose by 9.8% and the Zacks Computer and Technology sector which declined by 1.7% [1][4] Financial Performance - ADI reported a revenue growth of up to 63% in Q1 FY26, with significant contributions from the data center segment, which has been growing in double digits year over year [7][10] - The company expects Q2 revenues of $3.5 billion, indicating a year-over-year growth of 21.4% compared to the Zacks Consensus Estimate of $3.21 billion [11] - The gross margin expanded to 71.2%, up 140 basis points sequentially and 240 basis points year over year, while the operating margin reached 45.5%, up 200 basis points sequentially and 500 basis points year over year [12] Segment Growth - ADI's industrial segment grew by 38%, communications by 63%, consumer by 27%, and automotive by 8% year-over-year in Q1 FY26 [9] - The industrial and communications segments have been benefiting from AI-driven infrastructure demand, particularly in automatic test equipment systems and electro-optical interfaces [8][9] Competitive Landscape - ADI faces competition from Texas Instruments, STMicroelectronics, and NXP Semiconductors, which are also active in analog, digital, and mixed-signal markets [13][14] - Despite rising competition and increased spending on research & development and sales & marketing, ADI has managed to protect its margins through strong revenue growth [14] Earnings Outlook - The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is projected at $2.48, reflecting a year-over-year growth of 34% [15] - Recent upward revisions in earnings estimates indicate positive investor sentiment and confidence in ADI's growth trajectory [15][19]

Core Insights - Analog Devices (ADI) reported quarterly earnings of $2.46 per share, exceeding the Zacks Consensus Estimate of $2.3 per share, and showing a significant increase from $1.63 per share a year ago, resulting in an earnings surprise of +6.96% [1] - The company achieved revenues of $3.16 billion for the quarter ended January 2026, surpassing the Zacks Consensus Estimate by 1.36% and up from $2.42 billion year-over-year [2] - Analog Devices has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $2.45 on revenues of $3.21 billion, and for the current fiscal year, it is $10.01 on revenues of $13.04 billion [7] Industry Context - The Semiconductor - Analog and Mixed industry is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Company Performance - Monolithic Power (MPWR) has gained approximately 29.3% year-to-date, significantly outperforming the average loss of 2.6% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for MPWR's full-year earnings has increased by 5.8% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Monolithic Power holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised for strong performance in the near term [3] Industry Context - Monolithic Power is part of the Semiconductor - Analog and Mixed industry, which has seen an average gain of 24.5% this year, indicating that MPWR is performing better than its industry peers [6] - The Zacks Sector Rank places the Computer and Technology group at 6 out of 16, reflecting its relative strength within the broader market [2] - Another notable stock in the Computer and Technology sector is Ericsson (ERIC), which has returned 14.7% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Core Insights - The article discusses the concept of momentum investing, emphasizing the strategy of buying stocks that are trending upwards with the hope of selling them at even higher prices [1] - Monolithic Power (MPWR) is highlighted as a strong momentum stock, currently holding a Momentum Style Score of A and a Zacks Rank of 2 (Buy) [3][4] Company Performance - MPWR shares have increased by 9.4% over the past week, outperforming the Zacks Semiconductor - Analog and Mixed industry, which rose by 7.78% during the same period [6] - Over the past month, MPWR's price change is 21.67%, significantly higher than the industry's 11.65% [6] - In the last quarter, MPWR shares have risen by 35.28%, and over the past year, they have gained 71.09%, while the S&P 500 has only increased by 1.65% and 15.6%, respectively [7] Trading Volume - The average 20-day trading volume for MPWR is 710,006 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 7 earnings estimates for MPWR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $20.91 to $21.63 [10] - For the next fiscal year, 3 estimates have also moved upwards, indicating positive sentiment regarding future earnings [10] Conclusion - Given the strong performance metrics and positive earnings outlook, MPWR is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12]

Core Insights - Microchip Technology (MCHP) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing a significant increase from $0.20 per share a year ago, resulting in an earnings surprise of +3.38% [1] - The company achieved revenues of $1.19 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.08% and increasing from $1.03 billion year-over-year [2] - Microchip Tech shares have appreciated approximately 22.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48, with projected revenues of $1.23 billion, and for the current fiscal year, the EPS estimate is $1.52 on revenues of $4.6 billion [7] - The estimate revisions trend for Microchip Tech was favorable ahead of the earnings release, contributing to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Semiconductor - Analog and Mixed industry, to which Microchip Tech belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Core Insights - Monolithic Power (MPWR) reported quarterly earnings of $4.79 per share, exceeding the Zacks Consensus Estimate of $4.73 per share, and showing an increase from $4.09 per share a year ago, resulting in an earnings surprise of +1.30% [1] - The company achieved revenues of $751.16 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.41% and up from $621.66 million year-over-year [2] - Monolithic has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Monolithic's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.64, with projected revenues of $741.03 million, while the estimate for the current fiscal year is $21.07 on $3.28 billion in revenues [7] Industry Context - The Semiconductor - Analog and Mixed industry, to which Monolithic belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Core Viewpoint - Analog Devices (ADI) has been trending in stock searches, indicating potential interest in its future performance [1] Earnings Performance - For the current quarter, Analog Devices is expected to report earnings of $2.30 per share, reflecting a year-over-year increase of +41.1% [5] - The Zacks Consensus Estimate for the current fiscal year is $9.97, indicating a +28% change from the previous year [5] - For the next fiscal year, the consensus earnings estimate is $11.35, representing a +13.9% increase [6] - The company has consistently beaten consensus EPS estimates in the last four quarters [13] Revenue Growth - The consensus sales estimate for the current quarter is $3.12 billion, showing a year-over-year increase of +28.7% [11] - Revenue estimates for the current and next fiscal years are $12.9 billion and $14.05 billion, indicating changes of +17.1% and +8.9%, respectively [11] Valuation Metrics - Analog Devices has a Zacks Rank of 2 (Buy), suggesting it may outperform the broader market in the near term [7][18] - The company is graded D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17]

分组1 - M/A-Com reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of $0.99 per share, and up from $0.79 per share a year ago, representing an earnings surprise of +2.69% [1] - The company achieved revenues of $271.61 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.00%, and an increase from $218.12 million year-over-year [2] - M/A-Com has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 25.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] - The company's earnings outlook, including consensus earnings expectations for upcoming quarters, will be crucial for future stock performance [4] - Current consensus EPS estimate for the next quarter is $1.02 on revenues of $274.54 million, and for the current fiscal year, it is $4.18 on revenues of $1.12 billion [7] 分组3 - The Semiconductor - Analog and Mixed industry, to which M/A-Com belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - M/A-Com currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]