Broadcom forecast second-quarter revenue above Wall Street expectations on strong demand for its custom artificial intelligence chips from companies processing big data, sending its shares up more than nearly 9% after the bell on Thursday.

The strong results helped to ease concerns about beaten-down AI stocks, which surfaced yesterday after fellow chipmaker Marvell Technology Inc. only just delivered to expectations and fell sharply Thursday morning. Broadcom’s stock surged more than 12% after-hours.

This is what the chip sector needed!' Bloomberg Managing Editor of Technology Lynn Doan reacts to earnings from chip supplier Broadcom that sent the company's stock soaring after the market close. The stronger-than-expected forecast was fueled by Broadcom's positive outlook on AI.