By Benjamin Pimentel

Shares of Analog Devices Inc. (ADI) jumped more than 15% in morning trading Wednesday, one day after the chipmaker reassured investors by posting profit and revenue declines that were less severe than Wall Street had projected.

Norwood, Mass.-based ADI also drew some analyst upgrades after reporting results late Tuesday.

In Wednesday morning trading the stock was up $3.16 to $23.74 on volume of more than 11 million shares.

Caris & Co. raised its rating for ADI to a buy, saying, "Positives we have expected are coming sooner and more significantly to ADI, contributing to a strong fiscal second quarter 2009 beat down the income statement and a positive round of Street estimate changes."

Deutsche Bank also upgraded the stock to buy from a hold, noting that the company's revenue of $475 million was "significantly better than guidance of down 5% to 15% quarter-on-quarter."

The company said fiscal second-quarter net income fell to $51.8 million, or 18 cents a share, versus net income of $133.1 million, or 45 cents a share, in the year-earlier period.

ADI said revenue decreased to $474.7 million from $649.3 million. Analysts had forecast earnings of 9 cents a share on revenue of $428.3 million, according to a FactSet Research survey.

Analog Devices said it expects third-quarter adjusted earnings of 17 cents to 19 cents a share, with revenue projected to be flat compared with the second quarter.

-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com