- Revenue forecast beats analyst expectations
- Management revises up full-year AI guidance
Computing and software conglomerate Broadcom (US:AVGO) beat broker expectations in the second quarter as artificial intelligence (AI) investment pushed up revenue from its networking business.
The semiconductor designer makes chips for ethernet switches used in AI data centres. Demand has surged as AI computing companies have ramped up spending. In the three months to May, Broadcom’s underlying revenue rose 12 per cent year on year, driven by a 280 per cent increase in AI revenue. It now makes $3.1bn (£2.4bn) from AI computing, which is around a quarter of the business.