Dear Analog Devices Stock Fans, Mark Your Calendars for May 20

Ebube Jones

Tue, May 19, 2026 at 12:26 PM EDT 5 min read

The semiconductor industry is having a huge year in 2026. Research firm Omdia has raised its 2026 chip revenue forecast to 62.7% year-over-year (YOY)growth, driven by strong demand for memory and logic chips as companies keep spending heavily on AI, servers, and cloud infrastructure. Computing and data storage revenue alone is expected to jump 90% this year to more than $700 billion, which would make 2026 the first year the global semiconductor industry tops $1 trillion in total revenue.

That strong backdrop has helped quality chip stocks move higher, and few have stood out more than Analog Devices (ADI). The Wilmington, Massachusetts-based company has caught Wall Street’s attention in 2026, with the stock up 84.39% over the past 52 weeks. That beats the S&P 500 Index ($SPX), which is up 23.1% and the S&P 500 Technology Sector SPDR Fund (XLK), which has returned 46.73% over the same period.

More News from Barchart

• A $3 Billion Reason to Buy Shell Stock Here (Plus It Has a Juicy 3.5% Dividend Yield)

• Ignore the Foundry Fears and Keep Buying Taiwan Semi Stock

• Dear Intuit Stock Fans, Mark Your Calendars for May 20

• Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

The rally has been backed by solid business performance. In its first quarter of fiscal 2026, Analog Devices posted 30% YOY revenue growth and a 51% increase in adjusted EPS, helped by strength in its industrial and communications businesses. Now, with the company set to report fiscal second-quarter 2026 results at 7:00 a.m. EST on Wednesday, May 20, followed by a conference call at 10:00 a.m. EST, investors are about to get a fresh look at whether that momentum is still going strong.

With the stock already up sharply and analysts calling for another 45.7% increase in full-year adjusted EPS for fiscal 2026, can this earnings report keep the rally going, or is the bar now too high?

Breaking Down Recent Performance

Analog Devices makes the chips and signal-processing products used in areas like factory equipment, cars, and communications systems. Its wide 52-week climb has helped the stock gain 53.95% year-to-date (YTD) and 79.81% in the past six months.

Ceretainly, the stock is not cheap. Analog Devices trades at about 36.77 times forward price-to-earnings, well above the sector average of 24.36 times. And, the company keeps returning cash to shareholders, with a 0.97% dividend yield, a quarterly dividend of $1.10, an 11% recent increase in that payout, a forward payout ratio of 45.58%, and a 24-year streak of dividend hikes.