According to reports, Analog Devices Chief Financial Officer Prashanth Mahendra Rajah said on April 5 that the company's revenue may exceed its previous forecast, and annual revenue is expected to grow by an average of 7% to 10% in the next five years, and demand remains strong.
The report pointed out that ADI's sales and profits have grown significantly in the past 12 months. However, the growth has fueled concerns that shipments are outstripping final demand for products that use the chips.
Mahendra Rajah said that while investors were concerned about the accumulation of chip inventories, ADI did not see that. "Customers are concerned that they don't have inventory and there is still demand to meet," he said.
Like the rest of the management team, ADI's leadership believes that the chip industry no longer relies primarily on computer and smartphone demand. Mahendra Rajah said semiconductors are used in more equipment, from industrial machinery to automobiles, and this diversification makes companies less vulnerable to sudden drops in orders in the past.
ADI CEO Vincent Roach also said that the semiconductor industry will double over the next decade, with total revenue reaching $1 trillion. It is worth mentioning that it took the semiconductor industry about 45 years to reach $500 billion in sales.
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