Chipmaker Analog Devices forecasts third-quarter revenue above estimates amid AI boom

Chipmaker Analog Devices forecast third-quarter revenue above Wall Street estimates on Wednesday, a sign of growing demand for its power-management semiconductors and sensor components amid the AI boom.

Increasing investments in AI infrastructure have boosted demand ‌across data ⁠centers and ⁠automotive systems, where higher processing speeds and complex data ​flows require more advanced components from suppliers like Analog Devices.

​The Wilmington, Massachusetts-based company expects third-quarter revenue of $3.9 billion, plus or minus $100 million, above analysts' average ​estimate of $3.62 billion, according to ⁠data compiled ‌by LSEG.


Revenue of $3.62 billion for ​the ​second quarter exceeded analysts' estimates of $3.51 billion.

⁠Analog Devices announced on Tuesday it would acquire Empower Semiconductor for about $1.5 billion in cash in a bid to expand its AI-focused power management portfolio.

The company reported adjusted earnings per share of $3.09 for the second quarter, beating estimates of $2.90.

"We continued to see growing demand ‌in the second quarter with record bookings across our B2B markets of Industrial, ​Automotive, and ​Communications," CFO ⁠Richard Puccio said in a statement.

The company said it expects third-quarter adjusted EPS of $3.30, plus or minus $0.15, ​compared with estimates of $3.00 per share.

Shares of the company have risen about 53% so far this year. They were largely unchanged in volatile premarket trading on Wednesday.