Analog Devices' quarterly forecast tops estimates on AI-fueled chip demand

Aug 19 (Reuters) - Analog ‌Devices forecast ​fourth-quarter ​revenue and profit above Wall Street estimates on Wednesday, betting on continued demand ‌for its power-management chips used across data centers ⁠and industrial applications as AI investments ramp up.

The company ‌stands to benefit from surging ‌investment in AI-driven computing, which has boosted demand for chips that regulate power and move ​vast amounts of data. Its components are widely used in data centers, factory automation equipment ⁠and modern vehicles.

• The company reported third-quarter revenue of $4.02 billion, up ​40% from a year earlier and above analysts' estimates of $3.92 billion.

• It reported adjusted ​earnings per share (EPS) of $3.45 for ‌the quarter, beating estimates of $3.33.

• CEO Vincent Roche said the company benefited from ⁠broad-based demand in the third quarter, and that investments in innovation, customer relationships and manufacturing capabilities position it ⁠to capitalize on opportunities in the AI era.

• The ​Wilmington, Massachusetts-based company expects fourth-quarter revenue of $4.3 billion, plus or minus $100 million, compared with analysts' average estimate of $4.07 billion, according ‌to data compiled by LSEG.

• It expects fourth-quarter adjusted EPS of $3.86, compared ‌with estimates of $3.54.

• Shares of the chipmaker, which ⁠have gained about 39% ‌so far this ​year, were flat in premarket trading.

(Reporting by Rashika Singh in Bengaluru; Editing by Vijay ‌Kishore)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• TJX stock drops as profit outlook falls short of analyst estimates
• European corporate outlook keeps improving as recovery goes beyond energy profits
• DA Davidson Reiterates Neutral Rating on Lowe's (LOW) as Guidance Lowered