Dec 11 (Reuters) – Broadcom (AVGO.O) on Thursday projected first-quarter income above Wall Avenue estimates, betting that sustained, sturdy demand for its specialised synthetic intelligence chips would energy one other 12 months of development and assist quell investor worries of a spending slowdown.
Shares of the Palo Alto, California-based firm rose over 2% in prolonged buying and selling.
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Broadcom CEO Hock Tan stated in an announcement that Broadcom’s AI semiconductor income – which encompasses each the customized chips it helps corporations equivalent to Google (GOOGL.O) to construct, in addition to networking chips utilized in AI knowledge facilities – is predicted to double to $8.2 billion within the fiscal first quarter.
The corporate has emerged as a significant beneficiary of the expertise trade’s rush to construct out AI capabilities. The corporate provides high-speed networking chips, equivalent to its Tomahawk and Jericho sequence, which can be crucial for transferring huge quantities of information inside AI knowledge facilities.
It forecast income of about $19.1 billion for the quarter, in contrast with analysts’ common estimate of $18.27 billion, in keeping with knowledge compiled by LSEG.
Reporting by Juby Babu in Mexico Metropolis; Modifying by Maju Samuel
Our Requirements: The Thomson Reuters Belief Ideas.
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