Is ADI (Analog Devices, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ADI is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (4.95% vs ≤33% threshold), interest income ratio (0.96% vs ≤5% threshold), and cash & securities ratio (2.08% vs ≤33% threshold).

Analog Devices, Inc. ( ADI) is a global leader in the semiconductor industry, specializing in high-performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits. Their technology is crucial for bridging the physical and digital worlds, with core products like data converters and power management systems serving the automotive, industrial, and communications markets. Rather than consumer gadgets, ADI focuses heavily on the ' B2B' infrastructure that powers modern electronics, giving them a distinct and resilient market position. For Muslim investors, ADI is a strong candidate as it passes all four Shariah screening criteria under AAOIFI standards. The company's core business of manufacturing hardware components is inherently permissible (Halal), free from prohibited activities like gambling, alcohol, or conventional banking. This clean business model simplifies the screening process, allowing investors to focus primarily on the financial ratios which ADI clears with significant margin. Financially, ADI demonstrates prudence that aligns well with Islamic finance principles. Their interest-bearing debt is remarkably low at just 4.9% of their market capitalization, and their liquid assets (cash and securities ) sit at 2.1%, both well within the 33% safe zone. Additionally, the income generated from interest is minimal (0.96%), meaning the need for purification of dividends is very low, making this a hassle-free stock for portfolio inclusion. Investors should continue to monitor ADI's acquisition strategy, as large mergers in the semiconductor space can sometimes alter debt structures temporarily. However, given their current strong balance sheet and clear operational focus, ADI remains a robust and compliant option for those seeking exposure to the technology sector without compromising on faith-based values. Analog Devices, Inc. operates in the Technology sector under the Semiconductors industry and is headquartered in Wilmington, MA, US. The company is led by CEO Vincent T. Roche and employs approximately 24,000 people.

ADI was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ADI passed 4 of these 4 screens.

Although ADI passes all shariah screens, it does earn $105.3M in interest income (0.96% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.96 to purify the income.

ADI was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.