Analog Devices (ADI) Boosts Generative AI Efforts With New Deal

Analog Devices ADI partnered with SambaNova Systems to deploy the latter’s enterprise-scale generative artificial intelligence (AI) platform, SambaNova Suite.

Further, the company plans to use the SambaNova Suite to expedite field sales and customer enablement, which will improve data access, guide field recommendations and enhance customer relationships.

The generative AI platform also offers advanced open-source models, customer data fine-tuning and perpetual model ownership, transforming AI into valuable assets.

The latest partnership is expected to drive ADI’s momentum across industrial and automotive companies that are using its analog and mixed-signal enterprise solutions.

Analog Devices, Inc. Price and Consensus

Analog Devices, Inc. price-consensus-chart | Analog Devices, Inc. Quote

Stiff Competition

This Zacks Rank #4 (Sell) company faces stiff competition from players like Synopsys SNPS and Intel Corporation INTC, which are also making concerted efforts to integrate generative AI capabilities into their semiconductor offerings. Shares of ADI have gained 11.7% in the past year, underperforming the industry’s growth of 17.3%.

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Synopsys collaborated with Microsoft to introduce Synopsys.ai Copilot, the first generative AI-driven Electronic Design Automation suite that integrates Azure OpenAI Service into the design process of semiconductors.

The Synopsys-Microsoft partnership will boost productivity and achieve design targets, bringing the power of generative AI to semiconductor engineering.

Meanwhile, Intel collaborated with DigitalBridge Group DBRG to form Articul8 AI, an independent company offering a secure, full-stack and vertically optimized generative AI software platform for enterprise customers, offering cloud, on-prem, or hybrid deployment options.

This partnership provides the generative AI software platform for large enterprise customers, offering speed, security and cost-efficiency. Optimized on Intel hardware architectures, it supports hybrid infrastructure alternatives and is used in industries like financial services, aerospace, semiconductors and telecommunications.

Strengthening Overall Portfolio

The latest partnership is in sync with the company’s increasing efforts to strengthen its overall product portfolio, which, in turn, will bolster its overall financial performance in the upcoming period.

The Zacks Consensus Estimate for ADI’s 2024 total revenues is pegged at $61.14 billion, indicating year-over-year growth of 12.7%.

The consensus mark for 2024 earnings is pegged at $1.85 per share, indicating year-over-year growth of 94.7%.

Analog Devices launched Apollo MxFE, an advanced software-defined, direct RF-sampling and wideband mixed signal front end platform. It helps customers accelerate design cycles and bring new products to market faster and at lower cost, while future-proofing their product designs.

ADI also announced a €630 million investment in its European regional headquarters in Limerick, Ireland, to build a 45,000 sq.ft R&D facility.

The investment will triple the company’s European wafer production capacity and increase its employment footprint in the mid-west region of Ireland by 600 new positions.

Analog Devices’ launch of a fully integrated open radio unit reference design platform, which allows for hardware and software customization for macro and small cell radio units, remains noteworthy.

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