NEW YORK, January 21, 2026, 15:10 EST — Regular session.
- Shares of Analog Devices climbed roughly 4% in afternoon trading, riding the wave of the chip sector’s broader rebound
- BofA raised its price target to $350 ahead of semiconductor earnings season on Wall Street
- Traders are eyeing the Fed’s Jan. 27–28 meeting, expecting the next market shock
Shares of Analog Devices Inc climbed 4.1% to $307.85 in Wednesday afternoon trading, gaining roughly $12 compared to Tuesday’s close.
The rally followed a steep selloff the day before, sparked by tariff threats and new political developments. Anthony Saglimbene, chief market strategist at Ameriprise Financial, called it “indicative of a lot of headlines, a lot of uncertainty.” Reuters
Chip stocks gained momentum on upbeat sell-side commentary ahead of earnings season. JPMorgan’s Harlan Sur highlighted improving cyclical trends in the semiconductor sector alongside steady AI-driven infrastructure demand. He forecasted results to come in “in line with or modestly above expectations.” Benzinga
Bank of America lifted its price target for Analog Devices to $350 from $320, maintaining a Buy rating. The bank anticipates modest beats in the December quarter and upward revisions for March across diversified analog chip companies, particularly industrial suppliers benefiting from steady pricing and expanding AI-related demand.
The iShares Semiconductor ETF (SOXX) jumped roughly 4%, leaving the Nasdaq 100 tracker QQQ behind with a gain just under 2%. Texas Instruments, a key player in analog chips, added about 3.4%, while Broadcom dipped 0.4%.
Analog Devices slipped 1.5% on Tuesday, closing at $295.67, yet it held up better than several rivals during the wider sell-off. Trading volume exceeded its 50-day average, according to MarketWatch data.
Analog Devices, based in Wilmington, Massachusetts, makes analog and mixed-signal chips used in industrial, automotive, and communications equipment—sectors sensitive to factory output and vehicle production. In its November quarterly update, the company exceeded expectations and projected first-quarter revenue around $3.1 billion, with a $100 million margin either way. Adjusted earnings were forecasted at $2.29 per share, plus or minus 10 cents.
But the recent rebound leaves chip stocks vulnerable if rates climb again or fresh policy news stirs up volatility. A Reuters poll showed every economist surveyed expects the Fed to hold its benchmark rate steady at 3.50%-3.75% during the Jan. 27–28 meeting. “The economic outlook on the surface suggests the Fed should remain on hold,” said Jeremy Schwartz, senior U.S. economist at Nomura. Reuters
For ADI, the key issue now is if industrial demand will stay strong through the upcoming reporting period, or if analyst optimism overshoots what customers end up ordering.
Traders are eyeing the Federal Reserve’s policy meeting scheduled for Jan. 27–28, with the rate decision set for Wednesday, Jan. 28.
