Analog Devices Posts $3.62B Quarter, Acquires Empower Semiconductor to Boost AI Power Management
ON•Analog Devices delivered record second-quarter revenue of $3.62 billion and announced the acquisition of Empower Semiconductor to enhance its AI power-management portfolio. Industrial sales rose 56% year-over-year and data-center revenue surged 90%, boosting gross margin to 73% but prompting management to forecast a slight margin decline in the third quarter.
1. Fiscal Q2 Highlights
Analog Devices posted record second-quarter revenue of $3.62 billion, driving a 5.4% weekly stock gain compared with a 1.4% rise in the S&P 500.
2. AI Power Management Acquisition
The purchase of Empower Semiconductor aims to strengthen Analog Devices’ AI-focused power-management offerings and diversify its product portfolio in a rapidly growing market.
3. Segment Growth Drivers
The industrial division expanded 56% year-over-year while data center revenue surged 90% as enterprises ramped up AI infrastructure investments.
4. Correlation and Margin Outlook
With a 0.72 correlation to the S&P 500, Analog Devices has captured 137% of market gains and absorbed 85% of losses; gross margin reached 73% in Q2 but is expected to soften slightly in the coming quarter.
