By Zaheer Kachwala and Max A. Cherney (Reuters) -Broadcom CEO on Thursday assuaged investor worries about AI chip demand with a strong second-quarter forecast and hinted about new potential customers that could boost revenue in a highly competitive market.

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.

Broadcom Inc., a chip supplier for Apple Inc. and other big tech companies, soared in late trading after an upbeat forecast reassured investors that spending on artificial intelligence computing remains healthy.