(Reuters) -Broadcom forecast its first-quarter revenue above Wall Street estimates on Thursday, betting on booming demand for its custom artificial intelligence chips and networking gear from cloud providers doubling down on GenAI infrastructure adoption.
The company forecast revenue of about $14.6 billion for the first quarter, compared with analysts’ average estimate of $14.57 billion according to data compiled by LSEG.
Shares of the Palo Alto, California-based company rose 4.1% in extended trading, having gained about 60% so far this year as one of the largest beneficiaries of a rally in AI-linked shares.
Demand for the company’s networking chips that help move around vast amounts of data used by applications such as OpenAI’s ChatGPT has also increased, as businesses double-down on investments in GenAI infrastructure.
The company recorded net income of $4.32 billion in the fourth quarter, up around 23%. Analysts expected $3.56 billion.
