ADI stock sinks on warning of slowing sales

Shares of Analog Devices fall on warnings of slowing sales expected later in 2023.

Video transcript

RACHELLE AKUFFO: Taking a look at chipmaker Analog Devices reporting second quarter earnings before the bell, beating the Street's expectations for earnings and revenue and seeing a record sales of industrial and automotive chips. Now, despite the solid numbers, you can see shares sinking over 7%, more than 8% right now, the company warning of slower sales in the second half of the year.

Now, CEO Vincent Roche and the report saying looking to the second half, we expect revenue to moderate given the continued economic uncertainty and normalizing supply chains. Now, this isn't far off from what other semiconductor companies have been seeing, as well. You have AMD and Intel both reporting declining chip sales and major losses in their most recent quarters, as well.