Morgan Stanley analyst Craig Hettenbach expects Analog Devices' stock to rise, driven by the "strength" of its "core business" and accretion from its acquisition of Linear. Although analysts didn't raise their estimates for the company due to its declining revenue per iPhone, there is now a better chance that its multiple will increase based on its lower customer concentration and increasing gross margins, according to Hettenbach. The analyst keeps a $96 price target and an Overweight rating on the stock.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.