Between NVIDIA and Analog Devices, Which Stock Looks Set to Break Out?

ADI: Analog Devices logo
ADI
Analog Devices

Analog Devices surged 19% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer NVIDIA gives you more. NVIDIA (NVDA) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Analog Devices (ADI) stock, suggesting you may be better off investing in NVDA

  • NVDA’s quarterly revenue growth was 62.5%, vs. ADI’s 25.9%.
  • In addition, its Last 12 Months revenue growth came in at 65.2%, ahead of ADI’s 16.9%.
  • NVDA leads on profitability over both periods – LTM margin of 58.8% and 3-year average of 55.8%.

These differences become even clearer when you look at the financials side by side. The table highlights how ADI’s fundamentals stack up against those of NVDA on growth, margins, momentum, and valuation multiples.

Valuation & Performance Overview

  ADI NVDA Preferred
     
Valuation      
P/EBIT Ratio 44.9 40.0 NVDA
     
Revenue Growth      
Last Quarter 25.9% 62.5% NVDA
Last 12 Months 16.9% 65.2% NVDA
Last 3 Year Average -1.4% 91.6% NVDA
     
Operating Margins      
Last 12 Months 27.2% 58.8% NVDA
Last 3 Year Average 27.2% 55.8% NVDA
     
Momentum      
Last 3 Year Return 75.1% 1014.6% ADI

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ADI Revenue Comparison | NVDA Revenue Comparison
See more margin details: ADI Operating Income Comparison | NVDA Operating Income Comparison

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See detailed fundamentals on Buy or Sell NVDA Stock and Buy or Sell ADI Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
ADI Return 27% 21% -5% 23% 9% 32% 158%    
NVDA Return 122% 125% -50% 239% 171% 30% 2874%   <===
S&P 500 Return 16% 27% -19% 24% 23% 16% 112%  
Monthly Win Rates [3]
ADI Win Rate 58% 50% 42% 58% 42% 50%   50%  
NVDA Win Rate 75% 58% 42% 75% 75% 58%   64%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 73%   65% <===
Max Drawdowns [4]
ADI Max Drawdown -30% -2% -21% -4% -7% -22%   -14%  
NVDA Max Drawdown -16% -11% -62% -2% -4% -30%   -21%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12% <===

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/19/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read NVDA Dip Buyer Analyses and ADI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Still not sure about ADI or NVDA? Consider portfolio approach.

Portfolios Beat Stock Picking

Single stocks swing wildly but staying invested matters. A well built portfolio keeps you invested, captures upside and softens the blows from individual stocks

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.