Analog Devices Shares Rally After $1.5B AI Power Deal Ahead of Earnings

New York, May 19, 2026, 19:04 (EDT)

Analog Devices Inc. shares moved higher after the bell on Tuesday. The chipmaker said it’s buying Empower Semiconductor in a $1.5 billion cash deal. ADI had slipped 1.02% to $414.31 by the close, but after hours the stock was up 1.36% at $419.95. That comes just ahead of the company’s quarterly report. After-hours trading refers to trading that happens after the regular U.S. market session.

ADI gets another opening in AI infrastructure with the deal, an area where power delivery is turning into a top concern along with computing. Power-management chips control the way electricity flows inside hardware. ADI said Empower’s tech pushes power conversion closer to the processor, which means a shorter route and better efficiency.

ADI earnings are due Wednesday. The chip maker said it will post fiscal Q2 results at 7:00 a.m. Eastern on May 20, with a call set for 10:00 a.m. Google Finance had the consensus at $2.91 a share, $3.52 billion revenue.

ADI agreed to buy Empower, paying $1.5 billion in cash to Empower stockholders under a deal approved by both boards. The companies said they plan to close in the second half of calendar 2026, pending usual conditions and waiting for the U.S. Hart-Scott-Rodino antitrust review.

ADI is focusing on a specific tech area with its move. Integrated voltage regulators, or IVRs, handle voltage control right next to the processor. ADI said Empower CEO Tim Phillips will continue leading the IVR effort once the deal is done.

ADI CEO Vincent Roche called energy “the most persistent constraint” in next-gen systems. Phillips said Empower’s tech was designed to tackle the “hardest problem in AI power delivery,” bringing “power density, speed and efficiency” to AI processors. Analog Devices

Empower’s silicon capacitors are in production now. Its IVR programs are still being worked on with hyperscalers and AI chip makers. ADI said buying Empower will make its power delivery market for AI compute bigger.

Cantor Fitzgerald stuck with its Overweight call and $510 price target on ADI, saying July-quarter revenue and earnings guidance might beat the Street, according to Investing.com. Stifel upped its price target to $450 while maintaining a Buy. Wall Street had already shifted toward ADI heading into earnings.

Chip stocks tied to analog and AI finished the session uneven. MarketWatch said ADI slipped 1.02% as the S&P 500 gave up 0.67%. Broadcom was off 2.29%. Texas Instruments logged a 0.57% gain.

ADI shares slid earlier as markets pulled back and with earnings on deck a day later, but bounced after the firm announced a set price on an AI power density deal. The move gave investors something concrete, though the tape stayed choppy.

But the risks are out there. The deal needs regulators to sign off, and any closing hangups could block it. ADI said costs, headaches bringing the companies together, keeping key people, and slower payoffs could all be trouble. If earnings on Wednesday come in soft or guidance is guarded, focus could shift back to the business itself and margins instead of the deal.

ADI has taken the bet that’s been on investors’ radar—when it comes to AI infrastructure, it’s not just processors that matter. The chips that supply data to those processors are in focus too.

Khadija Saeed Latest posts

A dedicated markets reporter, she covers stocks, macroeconomics, and major business developments with a sharp eye for detail and accuracy.

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