Analog Devices, Inc. (NASDAQ:ADI) shares traded higher in Wednesday premarket trading after the semiconductor company reported second-quarter results that topped Wall Street estimates, issued stronger-than-expected third-quarter guidance and announced a $1.5 billion acquisition of AI power management company Empower Semiconductor.

Analog Devices Q2 Earnings Beat Expectations

Analog Devices reported second-quarter adjusted earnings of $3.09 per share, beating analyst estimates of $2.90. Revenue rose 37.2% year over year to $3.62 billion, ahead of the $3.51 billion consensus estimate.

Earnings increased 67% from the prior-year quarter, supported by strong growth across the semiconductor company’s business segments.

Analog Devices forecast third-quarter adjusted earnings of $3.15 to $3.45 per share, above the analyst consensus estimate of $3.00. The company also projected revenue of $3.8 billion to $4 billion, topping estimates of $3.62 billion.

The company expects GAAP earnings of $2.45 to $2.75 per share for the quarter, compared with Wall Street expectations of $2.23 per share.

Empower Semiconductor Acquisition Expands AI Portfolio

On Tuesday, Analog Devices announced a $1.5 billion all-cash acquisition of Empower Semiconductor to expand its AI power management portfolio.

The deal strengthens ADI’s integrated voltage regulator and ...