Chipmaker Analog Devices forecasts strong Q4 results as demand recovers

Analog Devices forecast fourth-quarter revenue and profit above Wall Street expectations on Wednesday, as it benefits from returning demand for its chips used in consumer electronics.

A decline in surplus chip inventory across sectors, including communication, consumer and industrial, has helped chipmakers see a recovery in orders after a years-long slump.

Analog Devices’ consumer segment revenue rose 3% to $316.6 million in the third quarter, compared with analysts’ average estimate of $289.3 million, according to LSEG data.