Analog Devices sees strong second-quarter as AI boom fuels chip sales

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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