We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Analog Devices, Inc. (NASDAQ:ADI) stands against the other companies that hit $100 billion in market cap in 2024.
Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
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He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician working on power management in a semiconductor factory.
Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Cramer noted that as of last Friday’s close, Analog Devices, Inc. (NASDAQ:ADI) stock was up 11%.
“Analog Devices, that’s internet of things, up 11%… But both Micron and ADI are well off their high, so the whole thing might be a bit of a comedown for them.”
Analog Devices (NASDAQ:ADI) designs and manufactures integrated circuits, software, and subsystems, offering products for data conversion, power management, amplifiers, radio frequency ICs, and micro-electromechanical systems. The company recently reported its fourth-quarter earnings, with revenue of $2.4 billion, exceeding analyst expectations. Adjusted EPS stood at $1.67, also slightly above estimates.
However, the company saw significant year-over-year declines, particularly in its industrial segment, which dropped by 21% in the quarter and 35% for the fiscal year. CEO and Chairman Vincent Roche acknowledged these challenges, attributing them to unprecedented customer inventory pressures. Despite this, he highlighted the resilience of the company’s business model, which allowed the company to maintain operating margins above 40%.
During the earnings call, Analog Devices (NASDAQ:ADI) management emphasized the company’s ongoing focus on research and development, which contributed to the double-digit growth in its design win pipeline for fiscal 2024. The company also mentioned the momentum in its Maxim revenue synergies pipeline, particularly in sectors like GMSL, healthcare, and data center power. This progress is seen as a crucial step toward the company’s goal of achieving $1 billion in revenue synergies by 2027.
Overall ADI ranks 12th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of ADI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.