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)