Analog Devices, Inc. (ADI) reported significant growth in its data center segment during the first quarter of fiscal 2026, with revenues from automated test equipment and data center operations accounting for nearly 20% of total revenues, exceeding a run rate of $2 billion. This segment experienced approximately 50% growth in fiscal 2025 and has continued to accelerate, driven by increasing power demands from AI servers.
As of fiscal 2026, the Zacks Consensus Estimate for ADI’s revenues is projected at $13.79 billion, representing a year-over-year increase of 25.1%. ADI’s focus on power and optical solutions to support AI data centers could establish it as a long-term growth driver in the semiconductor industry.
In comparison, ADI faces competition from Broadcom and Advanced Micro Devices (AMD) in the AI infrastructure sector. Both companies have also reported substantial growth in their custom silicon and AI solutions. ADI’s stock has gained 31.5% over the past six months, outperforming the Analog and Mixed Semiconductor industry average growth of 20%.
