FPA Crescent Fund on Analog Devices, Inc.
Thesis
Analog Devices is benefiting from rising semiconductor requirements across AI infrastructure, industrial applications and communications. The company reported record quarterly revenue of $4.0 billion and management expects stronger demand to continue in the next quarter. An improving analog semiconductor cycle and exposure to several end markets support the long position.
“ADI reported a record $4.0bn of revenue”
Key risks
- The analog semiconductor cycle is cyclical
- Demand across industrial and communications markets could weaken