May 24, 2024 /SemiMedia/ -- According to the report, Analog Devices recently expected third-quarter revenue to be higher than Wall Street expectations because of rising demand for its industrial chips after a long period of sluggishness.

The report pointed out that ADI's customers are accelerating consumption of existing inventory and starting to place new orders.

"We believe that inventory rationalization across our broad customer base is stabilizing, clearing the way for us to return to sequential growth in the third fiscal quarter," said Vincent Roche, CEO of Analog Devices.

Vincent Roche added that the company is at the beginning of a cyclical recovery.

ADI also expects record revenue for its chip testing division in the short to medium term due to strong demand for HBM (high bandwidth memory) chips from AI.

The report pointed out that ADI's performance followed Texas Instruments' strong forecast, bringing optimism to rising demand for analog chips.