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Analog Devices

SDS 14/20 · [2 · 3 · 3 · 3 · 3] · ordinal

Demanding signal-chain applications inside a broader industrial and automotive portfolio.

Reviewed 2026-09-17 · Next review 2026-12-16 · released speg-index-2026-09-17-v1

Five judgments

Constraint · Low

2/4

Qualified alternatives appear credible across too much of the portfolio to support C3 company-wide.

Counterevidence: Texas Instruments also supports long product lives, limiting the inference that continuity alone is a unique constraint.

Substitution resistance · Moderate

3/4

Embedded designs can impose material requalification work, although application-level evidence is incomplete.

Counterevidence: Texas Instruments also supports long product lives, limiting the inference that continuity alone is a unique constraint.

Economic capture · Moderate

3/4

Current operating and cash economics are positive across periods; scarcity attribution remains incomplete.

Counterevidence: Texas Instruments also supports long product lives, limiting the inference that continuity alone is a unique constraint.

Persistence · Moderate

3/4

Long product lives support persistence in selected designs, but the scarce perimeter is not established.

Counterevidence: Texas Instruments also supports long product lives, limiting the inference that continuity alone is a unique constraint.

Cost of defense · Moderate

3/4

Reported economics remain after capital spending, without a complete split between growth and defense.

Counterevidence: Texas Instruments also supports long product lives, limiting the inference that continuity alone is a unique constraint.

Admission gates

  • dimension floors: fail — At least one dimension is unknown or below its floor.
  • materiality: fail — Company-level materiality is unassessable.
  • decisive confidence: fail — At least one decisive dimension is below Moderate confidence.
  • source packet: fail — Minimum admission packet is incomplete.
  • current review: pass — Structural review is current at the research cutoff.
  • material event: fail — A material perimeter or eligibility event remains unresolved.

Rationale, falsifiers, and next observation

14/20; watchlist Q3 FY2026 revenue was $4.022bn with GAAP operating margin 40.1%; trailing company-defined FCF was $4.937bn after $607.8m capex. ADI describes long product lives and discontinuation notice. TI also describes long product lives, so continuity alone is not unique. [D1–D3] **Judgment:** S3/E3/P3/D3 recognize embedded design continuity and retained economics. C2 and Low confidence in whole-company scarcity prevent admission despite total 14. Industrial and automotive categories cannot be labeled entirely scarce. The September 9 announced Alif acquisition is an additional perimeter-review item, not credited as an established capability. [D4] **Admission evidence needed:** identify demanding signal-chain applications, qualified substitutes and requalification burdens, then demonstrate material company exposure. Review after that packet or at next results/by December 16. Commodity-like replacement or deterioration after normal cycle adjustment would weaken the case further.
  • Commodity-like replacement across claimed applications
  • Cycle-normalized economics deteriorate despite normal defense spending
  • The acquisition changes the relevant perimeter without a completed review

Next: Identify demanding applications, qualified substitutes, requalification burdens, and their material company exposure.

Valuation context

PEG: unavailable (qualified reference path not assembled). Economic sPEG: unavailable (paired valuation uncalibrated). SDS is not a valuation input.

Source packet

D1 · Analog Devices · ADI Q3 results — Reported capture, company-defined FCFD2 · Analog Devices · ADI lifecycle policy — Issuer continuity policy, not observed switching costD3 · Texas Instruments · TI lifecycle policy — Rival continuity counters uniqueness inferenceD4 · Analog Devices · ADI investor news — Event flag only; no deal economics incorporated