May 27, 2025 Analog Devices Inc (ADI) raised its third-quarter revenue forecast, citing stabilizing chip demand across industrial and automotive markets, though it cautioned that recent strength in the automotive segment may reflect short-term pull-ins driven by U.S. tariff policy changes.
The company expects revenue of $2.75 billion, plus or minus $100 million, topping earlier projections of $2.62 billion. ADI noted that in the May-ended quarter, its automotive segment rose 24% year-over-year to $849.5 million — growth it attributes largely to accelerated customer orders ahead of anticipated tariff adjustments.
“While it's challenging to distinguish normal demand from pull-ins, we estimate that the pull-forward effect contributed a high-single-digit percentage to auto revenues,” said an ADI executive during the earnings call.
Beyond automotive, ADI observed steady recovery in analog demand, particularly in industrial applications, a sentiment echoed recently by Texas Instruments. After several quarters of inventory correction, companies are beginning to restock.
“Inventory levels have dropped significantly, and we are seeing restocking activity,” said Lou Miscioscia, analyst at Daiwa Securities.
Still, analysts warned that demand driven by policy shifts may not indicate a broad-based or sustainable recovery. “The pull-in effect in automotive should be monitored closely to gauge future quarters,” said Stifel senior analyst Tore Svanberg.
