50 Analog Devices (ADI.O) has forecasted third-quarter revenue exceeding Wall Street expectations, buoyed by increased demand for its industrial chips following a prolonged period of sluggishness. The optimistic outlook has propelled the company’s shares up by over 8%. The positive forecast suggests that the chipmaker’s clients, having worked through existing inventory, are now initiating new orders amidst indications of an improving economy. CEO Vincent Roche remarked that the company perceives a stabilization in inventory rationalization across its broad customer base, paving the way for sequential growth in the third quarter. Roche also noted that Analog Devices is witnessing the early stages of a cyclical recovery. For the third quarter, the company anticipates revenue of $2.27 billion, with a potential variation of plus or minus $100 million. This projection surpasses analyst estimates of $2.16 billion, based on data from LSEG. Analog Devices emphasized its initiatives in artificial intelligence during a post-earnings conference call. Additionally, the company expects its chip testing segment to achieve “record revenues” in the near to mid-term, fueled by robust demand for high-bandwidth memory chips. You Might Be Interested In Zambia to Revise Budget Amid Drought Threat to Food Production Republican Attorneys General Sue to Halt EPA’s Carbon Rule ESG spending leads to higher profits, Infosys report finds JPMorgan Makes Move into Booming Private Credit Market Apple’s AI Push: A Bid to Reignite iPhone Sales U.S. Dollar Strengthens Amid Strong Data, Diminished Rate Cut Expectations
