(Reuters) -Israeli contract chipmaker Tower Semiconductor forecast third-quarter revenue above Wall Street expectations on Monday, driven by steady demand for its chips used in the automotive and industrial markets.
The company’s U.S.-listed shares were up 5% in early trading.
Tower Semiconductor has also seen higher demand for its advanced chip technologies used in optical fiber communications from companies building data centers and AI infrastructure.
These chips help move large amounts of data quickly and efficiently, making them essential components in the modern data centers and networks powering today’s digital world.
The company specializes in manufacturing analog and mixed-signal integrated circuits for a wide range of applications, including automotive, industrial, consumer electronics and optical communications.
“The momentum we have gained in our RF infrastructure business, driven by data centers and AI expansions, is particularly noteworthy, with customer forecasts continuing to increase,” CEO Russell Ellwanger said.
Tower Semiconductor forecast third-quarter revenue of $395 million, plus or minus 5%, while analysts expect revenue of $392.5 million, according to data compiled by LSEG.It reported 6% growth in revenue to $372.1 million in the second quarter, compared with an expectation of $371.6 million.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Pooja Desai)
