(Reuters) -Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips.
The company, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google.
Broadcom has seen strong demand for its custom AI and networking chips, which form the backbone of artificial intelligence infrastructure.
Many companies such as Google have reaffirmed their investments for the year on expanding AI infrastructure, underscoring strong demand for its custom chips.
“We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest,” Broadcom CEO Hock Tan said.
The company forecast third-quarter revenue of around $15.80 billion, compared with analysts’ average estimate of $15.71 billion, according to data compiled by LSEG.
Revenue from Broadcom’s semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter.
The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion.
Broadcom’s shares were down about 2% in volatile trading after the bell.
(Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Editing by Shounak Dasgupta)
Comments