Chip company Broadcom Inc<\/a> forecast second-quarter revenue above Wall Street estimates on Thursday, encouraged by strong demand from enterprise and cloud clients, and the ramp-up in 5G technology.
A recovery in enterprise spending and increased applications of cloud computing has benefited Broadcom<\/a>, which supplies chips for data-center storage<\/a>, servers, networking gear and broadband devices<\/a>.
The company, which counts Apple Inc<\/a> as a major customer, is also poised to gain from the global 5G rollout<\/a>, which is likely to boost demand for its chips used in handsets, telecom equipment and other devices<\/a>.
\"Broadcom's record first quarter results were driven by strong enterprise demand, and continued investments in next generation technology by hyperscale and service providers,\" said Hock Tan, president and chief executive of Broadcom, in a statement. \"Our second quarter outlook projects year-over-year growth to accelerate.\"
Adjusted revenue for the quarter ended Jan. 30 was $7.71 billion, up 16% year-on-year and slightly higher than Wall Street's expectation for $7.60 billion. Excluding items, the company earned $8.39 per share, beating estimates of $8.08.
Broadcom forecast current-quarter revenue of about $7.9 billion, compared with analysts' average estimate of $7.43 billion, according to IBES data<\/a> from Refinitiv.
The San Jose, California-based company's shares, which have declined about 12% so far this year amid a rout in tech stocks, were up about 2% in extended trading.
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