Broadcom rides on AI chip demand to deliver upbeat revenue forecast

Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips.

However, the company’s shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology.

Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts’ average estimate of $15.71 billion, according to…