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Here's How Much a $1000 Investment in Analog Devices Made 10 Years Ago Would Be Worth Today

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Analog Devices (ADI) ten years ago? It may not have been easy to hold on to ADI for all that time, but if you did, how much would your investment be worth today?

Analog Devices' Business In-Depth

With that in mind, let's take a look at Analog Devices' main business drivers.

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Analog Devices, Inc. is headquartered in Norwood, Massachusetts. The company is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.

The product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.

The company also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products; voltage references; interface products such as isolators, translators and transceivers; wireless products and converters; broadband products including amplifiers, CODECs, chipsets, splitters.

Analog Devices has manufacturing facilities in the United States, Ireland, and Southeast Asia. The company also uses outside foundries, mainly Taiwan Semiconductor Manufacturing Company for front-end processing and third-party subcontractors for back-end operations.

Notably, the company generated $12.01 billion revenues in fiscal 2022.

The company generates revenues from four organized end-markets – Industrial, Consumer, Communications and Automotive.

In Industrial market (50.5% of fiscal 2022 revenues), Analog Devices caters to the needs of industrial and instrumentation, defense/aerospace, energy management and healthcare sectors.

In Communications market (15.7%), Analog Devices offers products required in internet infrastructures, broadband and wireless applications.

For Automotive market (20.9%), the company offers products that are utilized in infotainment, electrification, autonomous, ADAS and safety applications.

Further, the company takes care of the requirements in feature-rich, high-performance products such as portable devices and prosumer video/audio equipment in the Consumer market (12.9%).

The company caters to the growing demand for its products in these afore mentioned markets via its strong sales channels. We note that it has direct sales offices, sales representatives and distributors in more than 50 countries.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Analog Devices, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in March 2013 would be worth $4,177.46, or a gain of 317.75%, as of March 31, 2023, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 158.15% and the price of gold went up 19.23% over the same time frame.

Analysts are forecasting more upside for ADI too.

Analog Devices posted fiscal first quarter results wherein both earnings and revenues grew year over year. Strength across communication, consumer, industrial and automotive end-markets drove the results. Solid demand for high-performance analog as well as mixed signal solutions was a tailwind. Strong momentum across the electric vehicle space on the back of robust Battery Management System solutions remains a positive. Further, growing power design wins are other positives. Solid momentum of HEV platform across cabin electronics ecosystem remains a tailwind. Considering the abovementioned factors, we expect second-quarter fiscal 2023 total revenue to rise 4.9% year over year. However, pandemic induced supply-chain constraints are concerns. Further, geopolitical tensions led by Russia-Ukraine war are major overhangs.

Over the past four weeks, shares have rallied 5.21%, and there have been 13 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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