Broadcom's shares soared 12% in premarket trading on Friday as the chipmaker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.

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's share price rose by as much as 14% in extended trading, after the firm reported healthy demand for its custom AI chips.

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.

Broadcom stock rallied after the company posted better-than-expected earnings. The strong results from the semiconductor maker could provide some relief to the beaten-down artificial-intelligence trade.

Broadcom shares rallied after the company posted strong first-quarter earnings and guidance and signaled ongoing AI demand.

Broadcom's shares rose 6% on Friday as the semiconductor maker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.