Broadcom forecast first-quarter revenue of about $8.9 billion, 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 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.
Broadcom reported that its revenue rose 21 percent to $8.93 billion in the fourth quarter ended Oct. 30 as a result of strong demand from hyperscale, service providers, and enterprise.
Hock Tan, President and CEO of Broadcom, said: “The growth was driven by partnerships with customers and accelerated adoption of our next generation technologies. As we look into fiscal 2023, our increased R&D investments during the preceding years position us to extend our leadership in next generation products within the end markets we address.”