Broadcom Gives Strong Forecast on Data Center Chips Demand
- CEO says company isn’t letting customers hoard inventory
- Internet service providers need chips to improve home access
Broadcom Inc., one of the world’s largest chipmakers, gave a bullish forecast for quarterly sales, boosted by demand for chips used in data centers and equipment needed to improve consumer home internet speeds.
Revenue in the fiscal third quarter will be about $6.75 billion, the San Jose, California-based company said Thursday in a statement. That compares with an average analyst estimate of $6.59 billion, according to data compiled by Bloomberg.
A succession of acquisitions by Chief Executive Officer Hock Tan have made Broadcom one of the world’s top semiconductor makers by market value. He’s also added a software division that makes his company’s earnings a broader indicator of trends in corporate spending across the economy.
“Due to the strength in demand for semiconductors across our multiple end markets, we delivered 20% year-over-year increase in semiconductor revenue,” Tan said in the statement.