Analog Devices acquires Empower Semiconductor for $1.5B, forecasts strong revenue amid AI boom

Chipmaker Analog Devices forecasts third-quarter revenue above estimates amid AI boom

May 20 (Reuters) - Chipmaker Analog Devices (ADI.O), opens new tab forecast third-quarter revenue above Wall Street estimates on Wednesday, a sign of growing demand for its power-management semiconductors and sensor components amid the AI boom. Increasing investments in AI infrastructure have boosted demand across data centers and automotive systems, where higher processing speeds and complex data flows require more advanced components from suppliers like Analog Devices. Reporting by Jaspreet Singh in Bengaluru; Editing by Jonathan Ananda Our Standards: The Thomson Reuters Trust Principles., opens new tab

Analog Devices near $1.5bn cash deal for Empower Semiconductor's AI power chips

The Milpitas-based vertical-power-delivery firm puts more than 3,000 amps of current directly under the GPU. The deal could be announced as soon as Tuesday. Analog Devices is in advanced talks to acquire Empower Semiconductor, the closely held Californian power-management chip company, for $1.5bn in cash, Bloomberg reported on Tuesday, citing people familiar with the matter. A transaction could be announced as soon as Tuesday, US time. Neither company has publicly confirmed the discussions on the record. What Empower makes is the operationally critical piece behind the AI data-centre buildout. The Milpitas-based company, founded in 2014, designs integrated voltage regulators that sit directly under the GPU or other AI accelerator and deliver more than 3,000 amps of current up through the PCB rather than across it. The company's Crescendo platform, unveiled in October 2024, has been the most-cited example of 'vertical power delivery' (VPD), the architectural shift that the largest GPU suppliers have been pushing into their next-generation reference designs as power densities at the rack-level have outgrown traditional lateral power topology. The technical claim that has carried Empower into this category is straightforward. Placing the voltage regulator directly under the accelerator, rather than alongside it, can save approximately 20% of total system power on Empower's published estimates, by eliminating the resistive losses incurred when 3,000-amp currents are routed laterally. For a hyperscaler running tens of gigawatts of AI compute across a multi-year capex cycle, the implied operational saving is large enough to make the underlying voltage-regulator IP a strategic asset rather than a commoditised component. Empower closed a $140m+ Series D in late 2024, led by Fidelity Management & Research with participation from Maverick Silicon, CapitalG, Atreides Management, Socratic Partners, Walden Catalyst Ventures, Knollwood and an Abu Dhabi Investment Authority subsidiary. The $1.5bn price tag on the rumoured Analog Devices deal represents a meaningful step up from that round and reflects the rerating that hyperscaler-aligned AI-power suppliers have experienced through the spring. Analog Devices, the New York Stock Exchange-listed analogue and mixed-signal incumbent with a ~$140bn market capitalisation, has spent the past two years acquiring its way into the AI-infrastructure thesis. Empower would slot into ADI's power-management division alongside its existing voltage-regulation portfolio, with the strategic logic being that the bidder is buying VPD intellectual property and design talent rather than a commoditised manufacturing capacity. Whether ADI plans to integrate Empower's design into its existing roadmap or run the acquired business as a standalone unit serving hyperscaler customers will be the visible structural detail when the deal is formally announced. The macro context is the part that the financial press commentary has consistently underplayed. Big Tech 2026 capex commitments now exceed $650bn across Microsoft, Alphabet, Amazon, Meta, and Apple, with most of the spend going to AI-data-centre infrastructure. The bottleneck has been migrating progressively further upstream, from GPU supply (the Nvidia-volume problem of 2024) to data-centre site availability (the 2025 problem) to power-delivery architecture (the 2026 problem). The NextEra-Dominion $67bn utility merger announced this week is the macro version of the same trade; the ADI-Empower deal is the chip-level version. The competitive read for the broader power-semi category is the part the rest of the sector will be watching for. If $1.5bn is the clearing price for a private VPD specialist with $140m of disclosed prior funding and a Crescendo-class product, the implied multiples for the listed power-semi peers (Vicor, Texas Instruments' power-management division, Infineon, STMicroelectronics) will be visible in pre-market trading on Tuesday. Bloomberg's reporting does not include the negotiated multiple of Empower's run-rate revenue or the expected closing timeline, beyond noting that a deal could be announced 'as soon as Tuesday'.

Analog Devices to buy Empower Semiconductor for $1.5 billion to boost AI power portfolio

May 19 (Reuters) - U.S. chipmaker Analog Devices (ADI.O), opens new tab said on Tuesday it would acquire Empower Semiconductor for about $1.5 billion in cash, expanding its AI-focused power management portfolio. The companies said the deal will help advance power delivery for AI and other compute-intensive applications, for which power bottlenecks can ⁠be limiting. Here are some details: Reporting by Prakhar Srivastava in Bengaluru; Editing by Diti Pujara Our Standards: The Thomson Reuters Trust Principles., opens new tab

Chipmaker Analog Devices forecasts third-quarter revenue above estimates amid AI boom

Chipmaker Analog Devices anticipates strong third-quarter revenue, exceeding market expectations. This surge is driven by increased demand for its power-management semiconductors and sensor components. The AI boom is fueling growth in data centers and automotive systems. The company also announced a significant acquisition to bolster its AI-focused portfolio. This positive outlook reflects robust performance and future potential. Chipmaker Analog Devices forecast third-quarter revenue above Wall Street estimates on Wednesday, a sign of growing demand for its power-management semiconductors and sensor components amid the AI boom. Increasing investments in AI infrastructure have boosted demand across data ⁠centers and ⁠automotive systems, where higher processing speeds and complex data flows require more advanced components from suppliers like Analog Devices. The Wilmington, Massachusetts-based company expects third-quarter revenue of $3.9 billion, plus or minus $100 million, above analysts' average estimate of $3.62 billion, according to ⁠data compiled by LSEG. Revenue of $3.62 billion for the second quarter exceeded analysts' estimates of $3.51 billion. ⁠Analog Devices announced on Tuesday it would acquire Empower Semiconductor for about $1.5 billion in cash in a bid to expand its AI-focused power management portfolio. The company reported adjusted earnings per share of $3.09 for the second quarter, beating estimates of $2.90. "We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications," CFO ⁠Richard Puccio said in a statement. The company said it expects third-quarter adjusted EPS of $3.30, plus or minus $0.15, compared with estimates of $3.00 per share. Shares of the company have risen about 53% so far this year. They were largely unchanged in volatile premarket trading on Wednesday.

Analog Devices Cashes In On AI Infrastructure Boom - Analog Devices (NASDAQ:ADI)

The strong earnings beat likely prompted investors to lock in recent gains. The acquisition adds integrated voltage regulator and silicon capacitor technologies used in AI data centers and high-performance computing systems to ADI's portfolio. The deal is expected to close in the second half of 2026, pending regulatory approvals. Analog Devices Second-Quarter Revenue, Earnings Beat Estimates ADI reported second-quarter revenue of $3.62 billion, up 37% from a year earlier and above the analyst consensus estimate of $3.51 billion. Adjusted earnings came in at $3.09 per share, topping Wall Street estimates of $2.90 per share. Industrial revenue rose 56% year over year to $1.8 billion, while communications revenue climbed 79% to $554.73 million. Automotive revenue increased 2% to $871.57 million, and consumer revenue advanced 23% to $397.76 million. Analog Devices said industrial remained its largest business segment in the fiscal second quarter, accounting for 50% of total revenue, while automotive represented 24%, communications 15% and consumer 11%. The company also highlighted continued momentum in AI infrastructure, noting that data center now contributes more than 75% of communications revenue and grew more than 90% year over year, driven by demand for optical and power products. Margins Expand As Cash Flow Remains Strong Adjusted gross margin expanded 360 basis points to 73%, while adjusted operating margin increased 780 basis points to 49%. As of May 2, 2026, ADI held $2.44 billion in cash and cash equivalents and generated $872.04 million in operating cash flow during the quarter. ADI generated $734 million in free cash flow during the quarter and $4.6 billion over the trailing 12 months. The company also returned $1.3 billion to shareholders in the quarter through dividends and share repurchases. Analog Devices CEO Highlights AI And Industrial Demand CEO Vincent Roche said second-quarter revenue, profitability and earnings per share exceeded the high end of the company's guidance despite geopolitical and macroeconomic pressures. Roche said ADI is seeing record demand across its product portfolio, supported by the company's hybrid manufacturing model and supply-chain flexibility. The company identified AI-driven computing and connectivity, autonomy, healthcare, energy transition and immersive consumer technologies as major long-term growth drivers. Management added that ADI's data center and automated test equipment businesses continue to benefit from strong AI infrastructure spending and are positioned for further growth heading into 2027. Automation, Robotics And Energy Drive Industrial Growth Management also said industrial markets, including automation, healthcare, energy and electronic test and measurement, grew more than 40% during the first half of fiscal 2026. They cited factory automation, robotics adoption and reshoring trends as key demand drivers for ADI's sensing, connectivity and power-management technologies. Empower Semiconductor Deal Expands AI Infrastructure Exposure On the acquisition, the company said Empower Semiconductor's technologies could reduce power footprints, improve compute density and lower energy consumption in AI data centers, while broadening ADI's exposure to AI accelerator infrastructure. CFO Sees Broad-Based Demand Strength CFO Richard Puccio said industrial and communications growth was driven by demand for data center, optical and power products. He added that automotive growth benefited from gains in advanced driver-assistance systems, infotainment platforms and battery-management systems for electric vehicles. Analog Devices Issues Strong Third-Quarter Outlook For the fiscal third quarter, ADI forecast revenue of $3.80 billion to $4.00 billion, above analyst estimates of $3.62 billion. The company also projected adjusted earnings of $3.15 to $3.45 per share, ahead of the Street consensus estimate of $3.00 per share. ADI Price Action: Analog Devices shares were down 5.97% at $390.26 at the time of publication on Wednesday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Chipmaker Analog Devices forecasts third-quarter revenue above estimates amid AI boom

May 20 (Reuters) - Chipmaker Analog Devices forecast third-quarter revenue above Wall Street estimates on Wednesday, a sign of growing demand for its power-management semiconductors and sensor components amid the AI boom. Increasing investments in AI infrastructure have boosted demand across data centers and automotive systems, where higher processing speeds and complex data flows require more advanced components from suppliers like Analog Devices. o The Wilmington, Massachusetts-based company expects third-quarter revenue of $3.9 billion, plus or minus $100 million, above analysts' average estimate of $3.62 billion, according to data compiled by LSEG. o Revenue of $3.62 billion for the second quarter exceeded analysts' estimates of $3.51 billion. o Analog Devices announced on Tuesday it would acquire Empower Semiconductor for about $1.5 billion in cash in a bid to expand its AI-focused power management portfolio. o The company reported adjusted earnings per share of $3.09 for the second quarter, beating estimates of $2.90. o "We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications," CFO Richard Puccio said in a statement. o The company said it expects third-quarter adjusted EPS of $3.30, plus or minus $0.15, compared with estimates of $3.00 per share. o Shares of the company have risen about 53% so far this year. They were largely unchanged in volatile premarket trading on Wednesday. (Reporting by Jaspreet Singh in Bengaluru; Editing by Jonathan Ananda)

Analog Devices to Buy Empower Semiconductor for $1.5 Billion

Analog Devices agreed to buy Empower Semiconductor for $1.5 billion. The all-cash deal will help Analog Devices expand its total addressable market in artificial-intelligence compute power delivery as demand from AI developers climbs, the semiconductor company said Tuesday. Empower, based in Milpitas, Calif., makes technology designed to reduce the financial and energy cost of owning data centers. "AI infrastructure is fundamentally reshaping how power must be delivered, with energy now the most persistent constraint to scaling next-generation systems," Analog Devices Chief Executive Vincent Roche said. As AI's computing needs get bigger, power density has become a limiting factor, Analog said. Developers are asking for high-density, high-efficiency power. Empower's technology enables power density, speed and efficiency. Empower's silicon capacitor technology is in production, while its integrated voltage regulator programs are advancing in collaboration with AI hyperscalers. Empower Chief Executive Tim Phillips is expected to continue leading technology efforts as part of Analog Devices after the deal closes, which is slated to happen in the second half of this year.

Analog Devices in talks to buy Empower Semiconductor for $1.5 billion, Bloomberg News reports

May 18 (Reuters) - U.S. chipmaker Analog Devices is in advanced talks to acquire artificial intelligence chip company Empower Semiconductor for about $1.5 billion in cash, Bloomberg News reported on Monday, citing people familiar with the matter. Here are a few details: o Empower Semiconductor is a Silicon Valley-based power management chip company that manufactures voltage-regulating chips for AI processors and data centers, according to the company website. o The deal comes amid a surge in investment in data center infrastructure for generative AI workloads. o A deal could be announced as soon as Tuesday, according to the Bloomberg report. o Reuters could not immediately verify the report. Analog Devices and Empower Semiconductor did not immediately respond to a request for comment. o Wilmington, Massachusetts-based Analog Devices provides semiconductors to businesses in a variety of industries, including aerospace, automotive, and communications. o Analog Devices in February forecast second-quarter results above Wall Street estimates, driven by robust demand for its semiconductors. o Shares of Analog Devices have climbed more than 50% so far this year. (Reporting by Mihika Sharma in Bengaluru; Editing by Sherry Jacob-Phillips)