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 over 2 per cent in extended trading.
Broadcom CEO Hock Tan said in a statement that Broadcom’s AI semiconductor revenue – which encompasses both the custom chips it helps firms such as Google to build, as well as networking chips used in AI data centers – is expected to double to $8.2 billion in the fiscal first quarter.
The company 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. Â
It 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.Â
Source: CNA
