ADI vs TXN Stock Comparison: AI Score, Valuation, Performance and Upside
Analog Devices and Texas Instruments are the two largest US analog semiconductor companies, both in inventory correction recovery after a 2022–2024 industrial and automotive destocking cycle. TI is larger, with a broader product portfolio and owned manufacturing giving structural cost advantages. ADI focuses on higher-performance analog applications in precision measurement, communications, and automotive. Both are exceptional analog semiconductor franchises at different positions on the performance-price spectrum.
ADI vs TXN is high-performance analog semiconductor specialist with industrial, automotive, and communications signal chain leadership (Analog Devices) versus the world's largest analog chip portfolio with owned manufacturing cost advantages and decades of dividend compounding (Texas Instruments) — precision performance specialist vs scale-and-cost analog infrastructure leader.
ADI holds the edge across 3 of 5 key metrics in this comparison. ADI leads on both 1-year return (+50.86%) and forward P/E quality (23.17x vs 24.30x for TXN), a relatively favorable combination of momentum and valuation. On fundamentals, ADI is growing revenue faster (39.60%), while TXN maintains the higher operating margin (42.58%) — a classic growth-versus-profitability split. Analyst consensus implies similar upside for both: +24.27% for ADI and +25.55% for TXN.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- prefer the higher-performance end of analog semiconductors where ADI's precision converters and signal chains face less commodity competition
- value ADI's industrial and healthcare end markets for quality analog exposure with longer product design-in cycles and less commoditization pressure
- want analog semiconductor recovery exposure with communications infrastructure and automotive growth as ADI's Maxim acquisition broadens the combined company's automotive content
- are comfortable with prolonged industrial inventory destocking, communications capex variability, and TXN scale competition in commodity analog markets
- prefer the largest analog chip portfolio with owned 300mm manufacturing creating structural cost advantages over all fabless analog competitors
- value TI's 20+ year dividend growth track record and disciplined capital allocation focused on free cash flow per share growth over multi-year cycles
- want the most defensible long-term analog semiconductor compounding from TI's broad design-in installed base of 80,000+ products with 10–20 year lifecycles
- are comfortable with near-term gross margin pressure from inventory normalization, 300mm fab capex headwind to free cash flow, and China market exposure
| Metric | ADI | TXN |
|---|---|---|
| AI scorei | 65.0 | 54.9 |
| AI ranki | #81 | #284 |
| Latest closei | $375.72 | $266.64 |
| 1M returni | +0.66% | -0.30% |
| 6M returni | +21.03% | +41.61% |
| 1Y returni | +50.86% | +46.81% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ADI | TXN |
|---|---|---|
| 1Y ago | $15.09K (+50.9%) started 2025-09-18 | $14.68K (+46.8%) started 2025-09-18 |
| 5Y ago | $25.18K (+151.8%) started 2021-09-20 | $17.3K (+73.0%) started 2021-09-20 |
| 10Y ago | $84.64K (+746.4%) started 2016-09-19 | $63.91K (+539.1%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | ADI | TXN |
|---|---|---|
| Market capi | $183.54B | $236.2B |
| Trailing P/Ei | 45.04 | 39.37 |
| Forward P/Ei | 23.17 | 24.30 |
| Price/Salesi | 11.23 | 10.89 |
| EV/Revenuei | 13.71 | 12.51 |
| Analyst targeti | $470.72 | $324.71 |
| Target upsidei | +24.27% | +25.55% |
| Metric | ADI | TXN |
|---|---|---|
| Revenue growthi | 39.60% | 22.80% |
| Earnings growthi | 163.50% | 51.80% |
| EPS growthi | +163.50% | +51.80% |
| FCF margini | +29.88% | +18.22% |
| Operating margini | 39.50% | 42.58% |
| Profit margini | 29.79% | 31.11% |
| ROIC proxyi | 12.23% | 35.18% |
| Return on equityi | 12.23% | 35.18% |
| Dividend yieldi | 1.16% | 2.20% |
| Payout ratioi | 49.64% | 85.41% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.21 | 1.32 |
| Debt/equityi | 27.31 | 78.04 |
| Current ratioi | 1.25 | 4.86 |
| Quick ratioi | 0.83 | 3.25 |
Over the past year, ADI and TXN have moved strongly in the same direction (correlation of 0.81), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | ADI | TXN |
|---|---|---|---|
| 1Y | Growthi | +50.86% | +46.81% |
| CAGRi | +50.90% | +46.85% | |
| Volatilityi | 36.13% | 42.48% | |
| Sharpe ratioi | 1.20 | 1.01 | |
| Sortino ratioi | 1.79 | 1.72 | |
| Max drawdowni | 20.68% | 23.76% | |
| Current drawdowni | 15.66% | 19.75% | |
| Avg drawdowni | 6.68% | 8.25% | |
| Ulcer Indexi | 9.15% | 10.74% | |
| Max daily dropi | 8.58% | 8.46% | |
| Max wkly dropi | 12.05% | 14.08% | |
| 5Y | Growthi | +136.01% | +54.37% |
| CAGRi | +18.76% | +9.08% | |
| Volatilityi | 34.07% | 33.69% | |
| Sharpe ratioi | 0.54 | 0.29 | |
| Sortino ratioi | 0.81 | 0.44 | |
| Max drawdowni | 32.20% | 33.41% | |
| Current drawdowni | 15.66% | 19.75% | |
| Avg drawdowni | 8.64% | 11.60% | |
| Ulcer Indexi | 10.72% | 13.46% | |
| Max daily dropi | 9.37% | 13.34% | |
| Max wkly dropi | 18.34% | 17.97% | |
| 10Y | Growthi | +608.49% | +387.69% |
| CAGRi | +21.64% | +17.18% | |
| Volatilityi | 33.19% | 31.76% | |
| Sharpe ratioi | 0.62 | 0.52 | |
| Sortino ratioi | 0.91 | 0.76 | |
| Max drawdowni | 33.62% | 33.41% | |
| Current drawdowni | 15.66% | 19.75% | |
| Avg drawdowni | 7.21% | 8.55% | |
| Ulcer Indexi | 9.44% | 11.04% | |
| Max daily dropi | 16.61% | 13.34% | |
| Max wkly dropi | 18.34% | 17.97% |
| Category | ADI | TXN |
|---|---|---|
| Company | Analog Devices, Inc. | Texas Instruments Incorporated |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Analog Devices designs and manufactures high-performance analog and mixed-signal semiconductors — chips that convert real-world signals (temperature, pressure, sound, light) into digital data. ADI's products span data converters, amplifiers, signal chains, and power management. Key markets include industrial automation, communications infrastructure, automotive (ADAS), and healthcare equipment. ADI's 2021 acquisition of Maxim Integrated created the second-largest analog semiconductor company by revenue. | Texas Instruments is the world's largest analog semiconductor company by revenue, producing analog chips and embedded processors for industrial, automotive, personal electronics, and communications markets. TI's competitive differentiation is its enormous product portfolio (80,000+ chips), 14 manufacturing plants providing internal capacity advantages, and disciplined capital allocation through decades of consistent free cash flow generation and dividends. TI's analog chips are found in virtually all electronic equipment. |
| Investor focus | Investors track end-market recovery in industrial (ADI's largest market), inventory correction cycles (analog chips went through severe inventory destocking in 2023–2024), and automotive/communications growth recovery. | Investors track free cash flow per share growth over 4–5 year cycles (TI's primary capital allocation metric), inventory levels at customers (leading indicator of ordering normalization), and the pace of automotive and industrial end-market recovery. |
- High-performance analog leadership at the demanding end of the spectrum — ADI's chips go into the most precise measurement and control applications where performance matters more than price
- Industrial and automotive end markets provide better revenue quality than consumer electronics — ADI's industrial customers are generally less cyclical than PC or smartphone chipmakers
- Maxim Integrated acquisition doubled ADI's scale and added automotive and IoT markets — the combined company has broader coverage across analog applications
- World's largest analog chip portfolio (80,000+ products) — design engineers specify TI parts for new products, creating long product lifecycles where the same chip earns revenue for 10–20 years
- 14 owned manufacturing plants including 300mm wafer fabs provide structural cost advantage over fabless analog competitors — TI produces chips at lower cost per die than companies outsourcing to foundries
- Decades of consistent free cash flow and disciplined capital return (dividends increased 20+ consecutive years) make TI a high-quality dividend growth compounder in semiconductor infrastructure
- Analog semiconductor inventory destocking has been prolonged — industrial customers over-ordered during the pandemic and are working through excess inventory more slowly than expected
- TXN's larger scale and more aggressive pricing in commodity analog compete in some of ADI's addressable markets
- Communications infrastructure (5G base stations) has been a weaker than expected end market for ADI — telco capex cycles are unpredictable
- Analog chip inventory correction has lasted longer than expected — TI's utilization rates have been below optimal, pressuring gross margins until demand normalizes
- TI's capital expenditure in 300mm fab expansion (Sherman, TX fab) will pressure near-term free cash flow — the payoff is future cost reduction when demand normalizes
- China end market revenue is significant for TI — geopolitical tensions around semiconductor supply chains create risk to Chinese customer demand
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