Feb 18 (Reuters) – Analog Devices On Wednesday, forecast second-quarter results above Wall Street estimates, driven by robust demand from industrial and data center customers as the artificial intelligence boom continues to drive semiconductor sales.
Shares of Wilmington, Massachusetts-based chipmaker rose nearly 8% in premarket trading.
The company forecast second-quarter revenue of $3.5 billion, plus or minus $100 million, compared with the analysts’ average estimate of $3.23 billion, according to LSEG data.
Surging investment in data center infrastructure for generative AI workloads is helping offset a challenging macroeconomic and geopolitical backdrop, supporting demand for Analog Devices’ semiconductors as hyperscalers expand capacity.
“While the macro and geopolitical backdrop remains challenging, our revenue outlook for the second quarter reflects a new high-watermark for ADI, underscoring our strong execution against cyclical and secular growth tailwinds,” Analog Devices CFO Richard Puccio said.
The chipmaker forecast adjusted earnings of $2.88 per share, plus or minus 15 cents, compared with the analyst consensus of $2.31 per share.
First-quarter revenue came in at $3.16 billion, topping estimates of $3.12 billion.
(Reporting by Kritika Lamba in Bengaluru; Editing by Tasim Zahid)
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