Dec 8 (Reuters) – Broadcom Inc forecast current-quarter revenue above Wall Street estimates on Thursday, signaling strong demand for chips used in data centers and networking equipment.
Companies are increasingly investing in the infrastructure needed to support a switch to hybrid work models, giving Broadcom – which makes chips for data centers, routers and Wi-Fi modems – an edge over competitors with more exposure to smartphones and PCs.
Broadcom, which counts iPhone maker Apple Inc as a major customer, also stands to gain from the global rollout of 5G and its foray into the lucrative software arena.
Shares in Broadcom, which are down over 20% this year, rose 3% in extended trading.
The company forecast first-quarter revenue of about $8.9 billion, compared with analysts’ estimates of $8.78 billion, according to Refinitiv data.
Revenue rose 21% to $8.93 billion in the fourth quarter ended Oct.30. Analysts on average had expected $8.90 billion. Semiconductor revenue grew 26%, as supply chain constraints eased.
On an adjusted basis, the company earned $10.45 per share, surpassing estimates of $10.28. (Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta and link slot Maju Samuel)