Broadcom Up Most in 12 Weeks as AI Growth Fuels Upbeat Forecast – Yahoo Finance

(Bloomberg) — Broadcom Inc. shares were on track for their biggest gain in 12 weeks in early trading after the chip supplier for Apple Inc. and other big tech companies gave an upbeat forecast, reassuring investors that spending on artificial intelligence computing remains healthy.

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Sales will be about $14.9 billion in the three-month period ending May 4, Broadcom said in a statement Thursday. Analysts had estimated $14.6 billion on average, with some projections surpassing $15.1 billion.

The report suggests that a historic boom in AI spending is still going strong. Broadcom has been a major beneficiary of those expenditures, with its data center customers pouring money into new infrastructure.

The AI frenzy had helped push up the company’s market value above $1 trillion last year. But investors have grown more cautious in 2025, and they’ve been looking for evidence that the AI surge has legs.

On that front, Broadcom’s results delivered. Chief Executive Officer Hock Tan cited AI spending as a key driver during the first quarter, which ended Feb. 2. Sales from that area will total $4.4 billion in the current period, he said.

Broadcom’s stock rose about 13% in premarket trading on Friday. If the move holds, it would mark the biggest gain since Dec. 13. The shares closed at $179.45 on Thursday, down 23% so far this year.

The results follow a poorly received earnings report Wednesday from Broadcom competitor Marvell Technology Inc. That company’s revenue increased 27% in the most recent quarter, and it projected an acceleration in the current period. But the growth wasn’t enough for investors, who sent the shares down 20% on Thursday.

Broadcom’s profit was $1.60 a share in the fiscal first quarter, excluding some items, with revenue rising 25% to $14.92 billion. Analysts had estimated $1.50 a share in earnings and sales of $14.6 billion, according to data compiled by Bloomberg.

Though Broadcom makes a variety of chips — including connectivity components for the iPhone and networking technology — investors have focused lately on its custom design business. That division helps data center clients create chips that can create and run artificial intelligence software and services. The company is also now a major provider of software used by corporations to run their businesses and networks.