(Reuters) -Analog Devices ( ADI ) forecast third-quarter revenue and profit above Wall Street expectations on Thursday, betting on upbeat demand for its chips used in the automotive and industrial sectors.

The Wilmington, Massachusetts-based chipmaker projected third-quarter revenue of $2.75 billion, plus or minus $100 million, above estimates of $2.62 billion, according to data compiled by LSEG.

It also forecast adjusted per-share earnings of $1.92, plus or minus 10 cents, which was above Wall Street estimates of $1.83 per share.

Shares of the company rose 2.5% in premarket trading.

The analog chip industry is seeing a gradual recovery in demand from key sectors such as automotive and industrial demand, while demand for AI-upgraded devices has also boosted orders from the consumer electronics segment.

Chip companies such as Texas Instruments, Onsemi and Microchip Technology have also reported a relatively steady performance in recent quarters.

Analog Devices ( ADI ) supplies semiconductors across sectors including automotive, aerospace, industrial automation and consumer electronics and counts companies such as Boeing and Siemens among customers.

For the second quarter ended April 30, the company reported revenue rose 22% to $2.64 billion, beating analysts' estimate of $2.51 billion.