(Reuters) -Onsemi beat Wall Street estimates for third-quarter revenue and profit on Monday, helped by an artificial intelligence boom that has boosted demand for its chips used in data centers.
The company’s products that manage power consumption in AI data centers have shown growth, even as automotive clients are spending cautiously on the company’s silicon carbide chips amid sluggish electric vehicle demand in Europe and North America.
“We’re seeing continued signs of stabilization across our core markets, as well as positive growth in AI,” Onsemi Chief Executive Hassane El-Khoury said in a statement.
For the third quarter, Onsemi reported a revenue of $1.55 billion, beating analysts’ average estimate of $1.52 billion, according to data compiled by LSEG.
Quarterly adjusted profit came in at 63 cents per share, beating analysts’ average estimate of 59 cents.
The company expects fourth-quarter revenue between $1.48 billion and $1.58 billion, the mid point of which was largely in line with the estimate of $1.53 billion.
Onsemi expects fourth-quarter profit between 57 cents and 67 cents per share, in line with estimates of 62 cents.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Shinjini Ganguli)
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