Analog Devices (NASDAQ:ADI) is in advanced talks to acquire AI chip firm Empower Semiconductor for $1.5 billion in cash, Bloomberg reported on Monday.
Empower manufactures high-voltage chips for AI processors and data centers.
Analog Devices and Empower Semiconductor did not respond to Benzinga‘s request for comments
Analysts See Continued Momentum
Analog Devices reported first-quarter results above Wall Street estimates, with EPS of $2.46 beating the $2.31 consensus and revenue of $3.16 billion topping expectations of $3.12 billion. Revenue rose 3% sequentially and 30% year over year, driven by strong AI infrastructure-related data center demand and continued wireless momentum.
The company also issued second-quarter EPS guidance ahead of estimates, with analysts highlighting sustained strength in data center and industrial markets, along with pricing increases supporting continued momentum.
The company is due to report its second-quarter results on Wednesday.
ADI Price Action: On a year-to-date basis, Analog Devices stock surged 52.91%, as per Benzinga Pro. On Monday, it rose 0.26% to close at $418.58.
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