Broadcom forecast fourth-quarter revenue above Wall Street estimates on Thursday, bolstered by strong demand for its custom AI chips as enterprise clients invest heavily in data centers and machine learning applications.
Shares of the company were up 1.6 per cent in extended trading.
Broadcom has been one of the biggest beneficiaries of the generative artificial intelligence boom with hyperscale customers, including Google, adopting its custom accelerators due to their ability to process large quantities of data quickly.
“We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4,” said Broadcom CEO Hock Tan.
The company expects fourth-quarter revenue to be around $17.4 billion, compared with analysts’ average estimate of $17.01 billion, according to data compiled by LSEG.
