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.

Nvidia and Broadcom may be fellow passengers on the AI hype train, but they occupy different carriages. Nvidia’s off-the-shelf chips, known as graphics processing units, are the state of the art. But Broadcom helps so-called hyperscalers build silicon for more narrow tasks,

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

A key driver of this growth is the integration of VMware into Broadcom's infrastructure software business unit, which posted revenue of $6.7 billion in Q1 2025

Broadcom (NASDAQ:AVGO – Get Free Report) had its price objective reduced by investment analysts at Mizuho from $260.00 to $250.00 in a report released on Friday,Benzinga reports. The brokerage presently has an “outperform” rating on the semiconductor manufacturer’s stock.

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 rose after the chip maker said quarterly revenue jumped. Artificial-intelligence revenue jumped 77% from a year earlier to $4.1 billion last quarter. Overall, revenue grew 25% to $14.9 billion,

The chip maker's shares jumped 6% Friday morning after it [reported a surge in AI revenue](