(Reuters) -Monolithic Power Systems forecast fourth-quarter revenue above estimates on Thursday, expecting strong demand for its power control products and semiconductors as the artificial intelligence boom drives data center expansion.
The growing adoption of generative AI has helped drive demand for the hardware required to help run advanced data centers, helping providers such as Monolithic, which counts AI chip heavyweight Nvidia among its customers.
Monolithic has adapted its business to “the fluid geopolitical and macro-economic environment,” the company said in a statement.
The company expects sales between $730 million and $750 million for the fourth quarter, compared with the analysts’ average estimate of $725.3 million, according to data compiled by LSEG.
During the third quarter, the company’s sales in the enterprise data market segment grew 33% to $191.5 million sequentially, driven by higher sales of its power management solutions for AI applications, Monolithic said.
Revenue for the third quarter stood at $737.2 million, compared with the consensus estimate of $722.3 million.
Adjusted per-share profit stood at $4.73 in the third quarter, beating estimates of $4.64.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
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