Tech conglomerate Broadcom beat market estimates for first-quarter revenue on Thursday , as cloud providers continue to upgrade data centers to support artificial intelligence, helping drive demand for its advanced networking chips.
Broadcom did not update its annual revenue forecast of US$50 billion , which still falls just shy of expectations, likely disappointing investors.Broadcom and Marvell sell technology providing fast communication between high-end computers, and the two have been viewed on Wall Street as big potential winners from the explosive growth in AI computing.
A generative AI push across the tech landscape has prompted firms to increase spending on infrastructure, pushing demand for Broadcom’s chips which allow different parts of large cloud companies' systems to communicate with one another.