By Jesus Calero (Reuters) -Norwegian chipmaker Nordic Semiconductor on Wednesday reported consensus-beating second-quarter results and gave a revenue guidance above market expectations for the third
Nordic Semiconductor Shares Surge to Two-Year High on Strong Q2 Results
Nordic Semiconductor's Strong Performance
By Jesus Calero
Market Reaction
(Reuters) -Norwegian chipmaker Nordic Semiconductor on Wednesday reported consensus-beating second-quarter results and gave a revenue guidance above market expectations for the third quarter, citing stronger demand from major customers and momentum in its new nRF54 product platform.
Financial Highlights
WHY IT'S IMPORTANT
Future Growth Prospects
The company's bullish Q3 revenue guidance of $165 million to $185 million comes amid optimism in its end markets. It supplies Bluetooth and cellular IoT components for devices from PC accessories to industrial asset trackers.
Logitech recently reported better than expected demand for computer peripherals from both consumer and industrial customers. This reads as a sign of recovery in the semiconductor market after last year's inventory glut.
MARKET REACTION
Nordic Semiconductor's shares rose around 14% in early trading, taking their 2025 gains to 57.8% and touching their highest price in more than two years.
CONTEXT
Nordic Semiconductor's short-range wireless business, including the flagship nRF52 and nRF53 series, remains its main revenue driver, while newer nRF54 products are being rolled out to more customers.
The company said the nRF54 series would only trickle into 2025 sales, before kicking growth into higher gear next year.
BY THE NUMBERS
It reported revenue of $164 million and core earnings (EBITDA) of $21 million for the second quarter, topping average forecasts of $158.9 million and $15.8 million, respectively, from analysts polled by LSEG.
The company is targeting average annual growth above 20% in this decade, seeing the nRF54 platform as a key long-term growth engine.
The management said that ongoing trade tensions had not impacted the company's half-year performance, but they remain a risk factor going forward.
(Reporting by Jesus Calero in Gdansk, editing by Milla Nissi-Prussak)
