Nordic Semiconductor shares jump 10% on Q2 sales beat, rosy guidance

Published 13/08/2025, 08:30
© Reuters

Investing.com -- Nordic Semiconductor (OL:NOD) surged more than 10% in early European trading on Wednesday after the company reported better-than-expected results for the second quarter, driven by strong performance in its Consumer segment. 

The Norwegian fabless semiconductor firm posted second-quarter sales of $164 million, up from $127.95 million a year earlier and ahead of the $154.6 million consensus estimate.

Sequential growth was led by a 14% quarter-on-quarter increase in Consumer segment revenue, while Industrial and Healthcare revenues were broadly flat.

Gross margin came in at 50.7%, slightly above expectations of 50% and up 120 basis points from the previous quarter.

EBIT margin reached 7.0%, compared with the consensus at 3.1%.

For the third quarter of 2025, the company expects revenue between $165 million and $185 million, about 7% above pre-earnings consensus at the mid-point, supported by “continuing gradual recovery amongst large key customers and small customers.”

Gross margin guidance for the period is projected to be around 50%, in line with expectations.

"Overall, a strong set of Q2’25 results, however, we still remain concerned on the sustainability of a 20% growth rate beyond 2025," Jefferies analyst Om Bakhda wrote in a note. The brokerage reiterated its Underperform rating on Nordic.

Separately, Morgan Stanley (NYSE:MS) analysts said they expect the shares to outperform mid-single digits, adding that the 7 a.m. U.K. call "is likely to focus on channel health and dynamics in Industrial and Healthcare.”

 

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