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.

Revenue from the company’s custom AI chips is soaring, with more potential customers in the pipeline.

Broadcom remains resilient despite market challenges, driven by strong AI prospects. Learn why AVGO stock is a buy amid recent market dislocation.

The AI chipmaker offered an upbeat second-quarter outlook that was a silver lining in the otherwise downtrodden AI trade.

Hock Tan on Broadcom earnings $4 billion AI sales, chips, VMware and VCF, cloud hyperscalers, software infrastructure and semiconductor tariff impact.

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Nvidia sells the lion’s share of the parallel compute underpinning AI training, and it has a very large – and probably dominant – share of AI inference.

Broadcom shares are surging in premarket trading Friday after the chipmaker posted quarterly results and an outlook that topped analysts’ expectations on the back of robust demand for its artificial intelligence semiconductors.

Broadcom's custom AI chips appeal to cloud companies as a cheaper option for high-volume AI work.