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)
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