Analog Devices Stock Tumbles Pre-Market After Tariff Shock – But Retail Sentiment Hits Year-High On Citi's Bullish Call
The brokerage warned that semiconductor stocks could see at least a 20% additional downside if the tariffs trigger a recession.
Analog Devices (ADI) shares declined more than 3% in pre-market trading on Thursday, dragged down by broader market weakness following the Trump administration’s sweeping trade measures.
Despite the drop, retail sentiment on Stocktwits surged to a yearly high after Citi named ADI its "top pick" amid growing market uncertainty.
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The broader sell-off came after the administration imposed a 25% tariff on auto imports and a minimum 10% tariff on all U.S. trading partners.
Citi analysts said President Trump’s tariffs on Taiwan, South Korea, China, Vietnam, and other trade partners make it "virtually impossible to fully assess" the impact on semiconductor companies due to the complex and geographically dispersed nature of the supply chain, according to TheFly.
The brokerage warned that semiconductor stocks could see at least a 20% additional downside if the tariffs trigger a recession.
However, Citi maintained its bullish stance on Analog Devices, citing its strong margins and historical outperformance during downturns.
Citi noted that lower-margin semiconductor companies such as On Semiconductor (ON), Micron Technology (MU), and GlobalFoundries (GFS) could be more vulnerable in a recession. It also added that high-multiple stocks like Broadcom (AVGO) face higher risks.
Despite the stock’s dip, retail sentiment on Stocktwits around Analog Devices’ stock surged to a year-high in the ‘extremely bullish’ (100/100) zone as chatter surged to ‘extremely high’ levels.
One user pointed out that ADI is trading at a critical support level where it has historically rebounded.
Analog Devices shares are down 7% in 2025 but have gained more than 2% over the past 12 months.
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