Broadcom forecasts third-quarter revenue above estimates on AI boost

Broadcom Inc forecast third-quarter revenue above market estimates on Thursday, as it benefits from massive corporate investments in AI-related technologies.

The viral success of ChatGPT has sparked a surge in orders for chips that underpin the technology at big data centers, driving a rally in shares of semiconductor companies that cater to the hottest slice of the market.

Broadcom chief executive Hock Tan said generative AI could account for more than 25% of the company’s semiconductor revenue in 2024.

“Our revenue today, from this opportunity, represents about 15% of our semiconductor business,” Tan said, adding that it was only 10% in fiscal 2022.