Broadcom forecasts revenue above Wall Street estimates as data center demand booms

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Broadcom forecasts revenue above Wall Street estimates as data center demand booms
Broadcom forecasts revenue above Wall Street estimates as data center demand booms

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

On Thursday Broadcom Inc. forecast current-quarter revenue above Wall Street estimates, signalling a 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.

In extended trading, shares in Broadcom, which are down over 20% this year, rose by 3%.

Compared with analysts’ estimates of $8.78 billion, the company forecast first-quarter revenue of about $8.9 billion.

In the fourth quarter ended 30 October, revenue rose 21% to $8.93 billion. Analysts on average had expected $8.90 billion. As supply chain constraints eased, semiconductor revenue grew 26%.

Surpassing estimates of $10.28, the company earned $10.45 per share on an adjusted basis.

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