(Reuters) -Broadcom forecast its first-quarter income above Wall Avenue estimates on Thursday, betting on booming demand for its customized synthetic intelligence chips and networking gear from cloud suppliers doubling down on GenAI infrastructure adoption.
The corporate forecast income of about $14.6 billion for the primary quarter, in contrast with analysts’ common estimate of $14.57 billion in response to knowledge compiled by LSEG.
Shares of the Palo Alto, California-based firm rose 4.1% in prolonged buying and selling, having gained about 60% thus far this yr as one of many largest beneficiaries of a rally in AI-linked shares.
Demand for the corporate’s networking chips that assist transfer round huge quantities of knowledge utilized by functions corresponding to OpenAI’s ChatGPT has additionally elevated, as companies double-down on investments in GenAI infrastructure.
The corporate recorded internet revenue of $4.32 billion within the fourth quarter, up round 23%. Analysts anticipated $3.56 billion.