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.
