Yazılar

Analog Devices Forecasts Strong Sales, But Auto Segment Tariff Boost Raises Sustainability Questions

/in /tarafından

Analog Devices (ADI) on Thursday projected third-quarter revenue of $2.75 billion (± $100 million), beating Wall Street estimates of $2.62 billion, according to LSEG data. However, investor concern over tariff-driven demand in the automotive segment led to a 5% dip in shares after the announcement.

The chipmaker cited high-single-digit “pull-in” demand from automakers looking to stockpile semiconductors ahead of U.S. tariff changes, contributing to a 24% year-on-year jump in automotive sales, which reached $849.5 million for the May quarter. Yet, Analog Devices warned that auto revenue is expected to decline sequentially in the third quarter, triggering concerns about the durability of the rebound.

“While it’s difficult to delineate what was pull-in versus normal, our estimate for pull-in upside is in the high-single digit range,” said an ADI executive during the earnings call.

Broader Trends in Analog Chip Demand

The report follows a broader industry trend, with Texas Instruments last month also forecasting above-consensus revenue, signaling a revival in analog chip demand after quarters of inventory correction. Analysts believe restocking activity is now underway.

“Inventory had been really drawn down, so now we are seeing a restocking,” said Daiwa analyst Lou Miscioscia.

Despite the strong headline numbers, Stifel analyst Tore Svanberg noted investor concern around the temporary nature of auto demand driven by tariff policy rather than organic growth.

Consumer Segment Surges

ADI also reported a 30% jump in sales in its consumer segment, fueled by a rebound in personal electronics demand. According to Canalys data, global PC shipments rose 9.4% in Q1 2025 as manufacturers accelerated deliveries ahead of expected tariff hikes.

For Q3, Analog Devices forecast adjusted earnings per share of $1.92 (± $0.10), also ahead of consensus.

Tower Semiconductor Predicts Strong Q1 Revenue Amid Robust Auto Sector Demand

/in /tarafından

Tower Semiconductor (TSEM.TA), an Israeli contract chipmaker, has forecasted slightly higher-than-expected first-quarter 2025 revenue, driven by steady demand for its chips, particularly from the automobile sector. The company’s U.S.-listed shares rose by 1% in premarket trading following the announcement.

Tower specializes in manufacturing analog and mixed-signal semiconductors, which are primarily used in the automobile industry by “fabless” firms that design chips but outsource their production. Despite challenges within the automobile sector, such as difficulties in clearing excess inventory built up during the pandemic and a recent slowdown in demand for electric vehicles, Tower Semiconductor has remained resilient, continuing to supply its chips.

The company is now forecasting first-quarter revenue of $358 million, with a 5% margin of variability. This projection slightly exceeds analysts’ expectations of $357.5 million, according to LSEG data. For the fourth quarter, Tower reported revenue of $387.2 million, meeting analyst forecasts. However, its net profit for the quarter ending December 31 came in at $55.1 million, below the expected $58.7 million, mainly due to increased costs from its new greenfield chipmaking facility in Agrate, Italy.

On an adjusted basis, the company posted quarterly profit of 59 cents per share, surpassing analyst estimates of 52 cents per share.