Analog Devices' (ADI) fiscal Q1 results are seen to be in-line with expectations amid a weak macroeconomic environment impacting cyclical analog semiconductor demand, Oppenheimer said in an earnings preview Wednesday.

The semiconductor manufacturing company's fiscal Q1 results are scheduled for Feb. 19.

The investment firm said that the company's industrial segment is expected to decline 12% year-over-year in fiscal Q1, while management expects the segment to lead in 2025 as investment and technology spending for artificial intelligence system-on-chip and high-bandwidth memory remains "strong."

The company's automotive business is expected to increase by 8% in fiscal Q1 compared to the previous year as strength in China's electric vehicle market is helping offset broader industry softness, according to the note.

Oppenheimer expects a recovery of the communications segment in 2025 led by wireline infrastructure, with a new $100 million data center optical and power business ramping up.

The brokerage has an outperform rating on Analog Devices' stock with a price target of $245.

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