Under the wave of AI, there is a surge in demand for power management semiconductors. Analog Devices, Inc. (ADI.US) Q3 performance guidance exceeds expectations.

Analog Devices, Inc. reported higher-than-expected third-quarter revenue forecast on Wednesday, signaling a growing demand for its power management semiconductors and sensor components driven by the artificial intelligence boom. According to the financial report, the company's second-quarter revenue was $3.62 billion, a 37.1% increase compared to the same period last year, surpassing analysts' expectations of $3.51 billion; adjusted earnings per share were $3.09, beating analysts' expectations of $2.90. With increased investments in artificial intelligence infrastructure, demand in data centers and automotive systems is boostedhigher processing speeds and more complex data flows require suppliers like Analog Devices, Inc. to provide more advanced components. The company expects third-quarter revenue to be around $3.9 billion (plus or minus $100 million), higher than the analysts' average expectation of $3.62 billion; it also predicts adjusted earnings per share for the third quarter to be $3.30 (plus or minus $0.15), while analysts expected $3.00 per share. Analog Devices, Inc. announced on Tuesday that it will acquire Empower Semiconductor for approximately $1.5 billion in cash to expand its portfolio of power management products for artificial intelligence. Chief Financial Officer Richard Puglio stated, "In the second quarter, we continued to see growth in demand, with record orders in B2B markets such as industrial, automotive, and communications." In addition to the quarterly performance report, the board of directors of Analog also announced a dividend of $1.10 per share.