Analog Devices forecast third-quarter revenue and profit above Wall Street expectations on Thursday, betting on upbeat demand for its chips used in the automotive and industrial sectors, lifting its shares more than 3 per cent in premarket trading.
The analog chip industry is seeing a gradual recovery in key sectors such as automotive and industrial, with demand also boosted by shipments of personal electronics being pulled forward amid the U.S.’ shifting tariff policies.
“Against a backdrop of global trade volatility, our performance reflects the ongoing cyclical recovery,” CEO and Chair Vincent Roche said.
Analog Devices projected third-quarter revenue of $2.75 billion, plus or minus $100 million, above estimates of $2.62 billion, according to data compiled by LSEG.
It forecast adjusted per-share earnings of $1.92, plus or minus 10 cents, above Wall Street estimates of $1.83 per share.
Companies are also seeing a revival in analog chip demand after several quarters of clearing inventory that had accumulated during the pandemic. Peer Texas Instruments also forecast second-quarter revenue above Wall Street estimates last month.
For the second quarter ended May 3, the company reported revenue rose 22 per cent to $2.64 billion, beating analysts’ estimate of $2.51 billion.
Analog Devices supplies semiconductors across sectors including automotive, industrial automation and consumer electronics and counts companies such as Boeing among customers.
The industrial unit, its biggest by revenue share, saw sales rise 17 per cent to $1.16 billion, while automotive sales rose 24 per cent to $849.5 million in the quarter.
Sales at the consumer unit, which features chips for personal electronics, rose 30 per cent.
Global shipments of personal computers rose 9.4 per cent in the first quarter of this year as PC makers boosted consignments to the United States in anticipation of sweeping tariffs, according to data from research firm Canalys.
