By Om Jaiswal
Publication Date: 2026-03-26 13:33:00
Analog devices ADI highlighted data centers as one of its strongest growth areas in its first quarter fiscal 2026 earnings release. Analog Devices’ automated test equipment (ATE) and data center businesses now collectively account for nearly 20% of total revenue and represent a return on sales of more than $2 billion. The company’s data center business grew approximately 50% in fiscal 2025 and again experienced accelerated growth in the first quarter of fiscal 2026. This suggests that demand for AI data centers is becoming a more significant driver of ADI’s business.
The main driver is higher power requirements in AI data centers. AI servers require more power and tighter control as workloads become more complex. This drives demand for ADI’s hot-swap and protection products, which help transport larger amounts of power safely across racks. In addition, ADI is also seeing increasing demand for point-of-load converters, high-performance regulators, power system management ICs and multi-phase controllers. FDI has…