Cantor Weekly Muse ings Updated Thoughts on Semis and Previewing ADI into Earnings

Semiconductors & Semiconductor Equipment EQUITY RESEARCH Industry Report August 15, 2026 Weekly Muse-ings: Updated Thoughts on Semis and Research Analysts: C.J. Muse Previewing ADI into Earnings Semiconductor stocks have traded roughly in-line with the S&P (following Matthew Prisco prior 5+ week drawdown), enabling ~20% recovery from 7/29 bottom and bringing the SOX back to +75% YTD (vs. 6/22 peak 107%). We continue Jamison Phillips-Crone, CFA to recommend adding to positions aggressively, as we view today's AI Infrastructure buildout as durable and elongated, though recognize the rate of change from here is important too and that data points are no longer going to be uniformly positive. Thus, selectivity will matter. But with peak- to-trough declines of 32% for SMID Cap SPE, 27% for Memory, 25% for Analog, and 24% for Large Cap SPE, we view the sell-off as overdone. Our rank order of preference remains Memory/Storage, then Compute, and then SPE. Our Top Picks are MU & SNDK in Memory, WDC & STX in Storage, NVDA, AVGO, & AMD in AI Compute, and ASML, AMAT, LRCX, KLAC, TER, MKSI, & ONTO in Semi Cap. Potential Catalysts: A quiet week on the earnings front, with a report from covered company ADI on Wednesday. Other notable events include Hot Interconnects (Aug 19-21) and Hot Chips 2026 at Stanford (Aug 23-25). ADI - Numbers Moving Higher and This Print May Prove "Good Enough": We expect ADI to post a very solid beat and raise (Oct Q $4.25B+/$3.75+ vs. cons $4.07B/$3.54), better than peers in terms of magnitude and vs. typical seasonality (with the Oct Q likely representing the 10th consecutive Q of above-seasonal growth). Add in commentary that is likely to support continued cyclical strength, coupled with ongoing growth in AI-related revs (we estimate ~19% of revs last Q; expect ADI to talk up all 3 buckets here), and there is a lot to like about this report as numbers push higher. On the flip side, it's been a challenging Analog earnings season, and peers have set a pretty consistent bar for 3Q growth of +6-8% vs. ADI's typical seasonality of +LSD% - so we may have to see a guide of +8% Q/Q or better to get investors excited (which is within the realm of possibilities and compares to our base case of +6%). Elsewhere, we expect GMs to come in better- than-expected, which should be well-received (think guide 73%+), though the magnitude of upside is somewhat constrained, as ADI already operates at best-in-class levels (so don't expect a MCHP-like pop from this dynamic). But overall, there is no change to our view for EPS upside to $18 in CY27 (vs. cons of $15.59 today). And at a 25x multiple (which we view as a very fair mid-cycle multiple), this would result in fair value of $450. We believe there is upside from both a multiple and EPS perspective as investors shift focus to CY28 where EPS upside is closer to $20 - supporting our price target of $550. We reiterate our Overweight rating. Please see important disclosures, analyst certifications, and information regarding the status of non-US analysts in the disclosure section of this report found on pages 8 - 10.

ADI Reports on Wednesday, August 19th – Numbers Moving Higher and This Print May Prove “Good Enough” (Previously Published on July 8th; Now Including Updated Thoughts) Previously published thoughts in “black” font – updated thoughts in “blue”

 July Q – A Typical Beat: ADI has been beating in the LSD-MSD% range and we see no reason to expect differently this Q – leading to revs tracking to ~$4.0B (cons $3.90B). Expect strength to be broad-based, led by DC, ATE, and ADEF business lines (~40% of revs) as ADI achieves a 9th consecutive Q of above-seasonal growth. With GMs contracting slightly Q/Q after Apr Q channel reprice, we see EPS tracking towards ~$3.45 vs. cons $3.31. o Update: No change to view for a typical beat, though cons has moved up a bit since our initial preview. So we look for revs/EPS of $4.00B/$3.43 vs. cons of $3.92B/$3.34 – we note that this is already at the high end of the company’s guide, though if there were risk, it’s probably a smidge higher.

Exhibit 1: ADI July Q Results Preview JULY QUARTER RESULTS CF Cons Mgmt Guide Comments Preview Revenues…