Analog Devices agreed to buy Alif as Analog Devices stock sits 11.77 percent below target

Published on 10/09/2026 at 16:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q3 revenue hit USD 4.02 billion, up 40.00 percent year over year. Analog Devices stock costs EUR 359.78 on October 9, 2026 versus EUR 362.08.

Key points in brief

Analog Devices agreed to acquire Alif Semiconductor for USD 1.35 billion on September 9, 2026.
Fiscal Q3 2026 revenue reached USD 4.02 billion, up 40.00 percent year over year, with adjusted EPS of USD 3.45.
Analog Devices stock was at EUR 359.78 at Lang & Schwarz on October 9, 2026, versus a EUR 362.08 prior close and minus 0.64 percent.
The average analyst target cited by MarketBeat was USD 460.09, leaving the USD 405.93 primary-market price 11.77 percent below that target.

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Analog Devices (ISIN US0326541051) had agreed on September 9, 2026 to acquire Alif Semiconductor for USD 1.35 billion upfront, while Analog Devices stock was at EUR 359.78 at Lang & Schwarz on October 9, 2026 at 4:10 p.m. CEST, down 0.64 percent versus the prior close. Analog Devices said the transaction could add as much as USD 200 million in contingent consideration, subject to regulatory approval.

What does Alif add to ADI?

The September 9 agreement combines Analog Devices sensing, signal processing and power technologies with Alif's AI-native microcontrollers and fusion processors. The deal is expected to close before the end of calendar year 2026, according to Analog Devices.

The strategic attraction is physical AI, where systems process sensor data locally. Alif's platform adds low-latency inference and integrated neural processing, while the acquisition expands the addressable markets listed by Analog Devices across industrial, defense, energy, robotics and digital health.

Three milestones and their figures

On July 7, 2026, Analog Devices completed the USD 1.50 billion cash acquisition of Empower Semiconductor, as management said in the fiscal third-quarter call. On August 19, 2026, fiscal third-quarter revenue reached USD 4.02 billion, up 40.00 percent year over year, while adjusted EPS reached USD 3.45, up 68.00 percent year over year, according to Yahoo Finance. On September 9, 2026, the Alif agreement set upfront consideration at USD 1.35 billion.

Revenue growth meets high expectations

The latest quarter also showed a 72.50 percent non-GAAP gross margin and a 50.00 percent non-GAAP operating margin. Management guided to fiscal fourth-quarter revenue of USD 4.30 billion, plus or minus USD 100 million, with adjusted EPS of USD 3.86, plus or minus USD 0.15, in the call dated August 19, 2026.

MarketBeat reported on October 8, 2026 that the consensus rating was Moderate Buy with an average target of USD 460.09. Its reported primary-market price of USD 405.93 puts the stock 11.77 percent below that target, while the target remains a separate US-dollar comparison from the Lang & Schwarz euro quote.

Upcoming reporting date

InvestPane lists November 24, 2026 as the next earnings date. The near-term test is whether fiscal fourth-quarter revenue can reach the USD 4.30 billion midpoint while the Alif transaction moves through its approval process.

Stock price and investor perspective

Analog Devices stock was trading at EUR 359.78 at Lang & Schwarz on October 9, 2026 at 4:10 p.m. CEST, minus 0.64 percent versus the EUR 362.08 prior close. The primary-market quote was USD 403.75 on Nasdaq at 2:20 p.m. UTC on October 9, 2026, with a market capitalization of USD 196.7 billion and a 52-week range of USD 223.47 to USD 445.91.

The further course of trading is shown by the continuously updated real-time quote of Analog Devices stock.