(Reuters) – Semiconductor company Broadcom Inc forecast fourth-quarter revenue above Wall Street targets on Thursday, banking on strong demand for its chips used in servers and networking equipment.
Shares in the company rose 2.4% to $503 after the bell.
Chip firms such as Broadcom are likely to benefit from businesses worldwide increasingly investing in infrastructure to support a switch to hybrid work models following the pandemic.
“We expect solid demand across our end markets to continue in the fourth quarter, reflecting continued investment by our customers of next generation technologies in data centers, broadband, and wireless,” Chief Executive Officer Hock Tan said in a statement.
The company forecast current-quarter revenue of about $8.9 billion, compared with analysts’ estimates of $8.73 billion, according to IBES data from Refinitiv.
Revenue rose 25% to $8.46 billion in the third quarter ended July 31, surpassing expectations of $8.37 billion.
(Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath)
Source: One America News Network
