(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, stands to gain from the global roll-out of 5G that will boost demand for higher-priced chips used in smart phones.
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 revenue of $8.90 billion.
(Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.