Analog Devices has today forecast fourth-quarter revenue and profit above Wall Street estimates, betting on continued demand for its power-management chips used across data centres 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 centres, 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 posted 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 capitalise on opportunities in the AI era.
The Massachusetts-based company expects fourth-quarter revenue of $4.3 billion, plus or minus $100m, 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 have gained about 39% so far this year.
