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Analog Devices eyes August quarter revenue as AI demand lifts guidance
The chipmaker said its August quarter would bring $3.9 billion in revenue and $3.30 in adjusted EPS, alongside a 49% adjusted operating margin.
Analog Devices shares traded around $375.2 on July 16, as investors weighed whether the company is being valued for an AI-driven compute cycle. Yahoo Finance noted ADI’s trailing and forward P/E ratios were 56.6 and 26.0, respectively, in the lead-up to its latest outlook.
ADI reported fiscal second quarter revenue of $3.62 billion, with adjusted diluted EPS rising to $3.09. The company also cited sharp growth across key segments, including industrial revenue up 56% and communications revenue up 79%.
Management guided for the August quarter to revenue of $3.9 billion, an adjusted operating margin of 49.0%, and adjusted EPS of $3.30. The article tied the margin outlook to operating leverage, including higher factory utilization and a richer mix of industrial and communications products.
The bullish case also pointed to ADI’s expanded power-management portfolio, supported by its completed $1.5 billion cash acquisition of Empower Semiconductor. Yahoo Finance said Empower’s silicon capacitors are already in production and that integrated voltage regulator programs are being developed with hyperscalers and AI chip designers.