(Reuters) -Analog Devices forecast fourth-quarter revenue above analysts’ expectations on Wednesday, as the company anticipates stable demand for its products despite tariff uncertainty. The chipmaker has benefited from increased demand in its industrial segment, resulting in healthy bookings trends and growth in its order backlog, as manufacturers pulled forward shipments amid shifting U.S. tariff policies. Shares of the Wilmington, Massachusetts-based company rose about 4% in premarket trading. The company forecast fourth-quarter revenue of $3.00 billion, plus or minus $100 million, above analysts’ estimates of $2.82 billion, according to data compiled by LSEG. On an adjusted basis, the company expects fourth-quarter, profit per share to be $2.22, plus or minus 10 cents, above analysts’ estimates of $2.03. "We closed the third quarter with continued backlog growth and healthy bookings trends, notably in the Industrial end market," said CEO Vincent Roche. Industrial revenue, which accounts for 45% of the company’s total sales, rose 23% to $1.29 billion in the third quarter. The industrial segment focuses on providing advanced semiconductor solutions that power automation, sensing and control systems across various industries. The company posted third-quarter revenue of $2.88 billion, above analysts’ estimates of $2.77 billion. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago. Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year. ProPicks AI offers 6 model portfolios from Investing.com which identify the best stocks for investors to buy right now. For example, ProPicks AI found 9 overlooked stocks that jumped over 25% this year alone. The new stocks that made the monthly cut could yield enormous returns in the coming years. Is ADI one of them?

Investing.com -- With the potential introduction of section 232 tariffs, Bernstein has analyzed the U.S. supply and demand balance in analog and discrete semiconductors, focusing on the implications for major players including Texas Instruments (NASDAQ:TXN), Analog Devices (NASDAQ:ADI), Infineon (OTC:IFNNY) Technologies (ETR:IFXGn), and Renesas (TYO:6723). The U.S. already holds a strong position in analog semiconductors. Bernstein estimates the country accounts for around 18% of global analog capacity, ranking second behind China, and slightly exceeding domestic demand at roughly 16%. “Analog is the biggest market (~$80bn value in 2024), followed by discretes ($31bn) and MCU ($22bn),” the analysts said. In contrast, the U.S. has only 4% of global discrete capacity versus 11% demand, creating a modest shortfall in that segment. “If the U.S. manages to bring more manufacturing of end applications onshore, the demand may increase further, but at the moment, there is not a big gap that would result in a large wave of capacity expansion of analog/discrete in the U.S.,” analysts led by David Dai said in a note. Infineon and Renesas face the largest exposure risk to potential tariffs, given their relatively small U.S. production footprint. Infineon has virtually no significant U.S. capacity, while Renesas operates with mid-single-digit U.S. capacity against low-teens U.S. revenue. Bernstein notes that “both companies can mitigate it by outsourcing production to U.S. foundries,” with Renesas already outsourcing 65% of its output compared with Infineon’s more limited approach. “Infineon only outsources its MCU production, and all other products are in-house produced. The exact impact won’t be known until the official tariff is announced,” the note states. In contrast, U.S.-based TXN, ADI, and even Netherlands-headquartered NXP (NASDAQ:NXPI) appear well positioned. TXN operates nearly 80% of its front-end manufacturing in the U.S., compared with less than 40% U.S. revenue in 2024, leaving it with more than enough capacity to meet domestic needs. ADI and NXP each maintain roughly 60% of internal manufacturing in the U.S. and outsource around 40%, providing flexibility to support their domestic sales if required. Bernstein concludes that while any tariff move would be negative for non-U.S. analog suppliers—more so for Infineon than Renesas—the impact should be manageable. U.S. suppliers, meanwhile, “are benefiting from the supply chain shifts and have sufficient capacity to support their U.S. demand, likely without the need for substantial further domestic capacity expansion.” With IFXGn making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed IFXGn alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including IFXGn, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is IFXGn poised for similar growth? Don't miss the opportunity to find out.

IDUN Technologies, a company from Switzerland, and a pioneer in brain-sensing in-ear technology, has joined forces with Analog Devices to advance a critical dimension in hearables. Together, the two c...