Analog Devices expands AI footprint as growth accelerates

Analog Devices Inc. (NASDAQ: ADI) is stepping up its push into AI, agreeing to acquire privately held Alif Semiconductor for $1.35 billion as chipmakers seek to bring more intelligence to devices at the edge. The deal will add Alif’s AI-native microcontrollers and fusion processors to ADI’s portfolio of sensing, signal processing and power-management technologies, targeting applications from industrial equipment and robotics to digital health and wearables. The transaction is expected to close by the end of 2026.

The acquisition comes as ADI’s growth outlook strengthens. Visible Alpha consensus shows analysts expect revenue to rise 37% year-on-year to $15.1 billion in 2026, more than doubling the 17% growth recorded last year. The growth is expected to be broad-based across its business-to-business markets, with industrial revenue forecast to increase 49% to $7.4 billion and communications revenue to jump 76% to $2.4 billion, helped by demand for power-management and optical solutions used in AI data centers.

The communications business is also benefiting from ADI’s expansion of its power portfolio. The company completed its $1.5 billion acquisition of Empower Semiconductor in July, adding integrated voltage regulators and silicon-capacitor technology aimed at the power-density challenges of AI infrastructure.

Automotive revenue is forecast to grow a relatively modest 12% to $3.7 billion.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.