Broadcom forecasts upbeat quarterly revenue on strong AI chip demand
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Dec 11 : Broadcom on Thursday projected first-quarter revenue above Wall Street estimates, betting that sustained, robust demand for its specialized artificial intelligence chips would power another year of growth and help quell investor worries of a spending slowdown.
Shares of the Palo Alto, California-based company rose 2.8 per cent in extended trading.
Broadcom has emerged as a major beneficiary of the technology industry's rush to build out AI capabilities. The company supplies high-speed networking chips, such as its Tomahawk and Jericho series, that are critical for moving vast amounts of data within AI data centers.
The company forecast revenue of about $19.1 billion for the quarter, compared with analysts' average estimate of $18.27 billion, according to data compiled by LSEG.
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