By Juby Babu<\/p>\n
Dec 11 (Reuters) – Broadcom on Thursday projected first-quarter revenue above Wall Street estimates, betting that sustained, robust \u200bdemand for its specialized artificial intelligence<\/a> chips would power \u200canother year of growth and help quell investor worries of a spending slowdown.<\/p>\n Shares of \u200cthe Palo Alto, California-based company rose over 2% in extended trading.<\/p>\n Broadcom CEO Hock Tan said in a statement that Broadcom’s AI semiconductor revenue – which encompasses both the custom chips it helps firms such \u2060as Google to build, \u200cas well as networking chips used in AI data centers – is expected to double to $8.2 billion in \u200dthe fiscal first quarter.<\/p>\n The company has emerged as a major beneficiary of the technology industry’s rush to build out AI capabilities. The company supplies \u200bhigh-speed networking chips, such as its Tomahawk and Jericho series, \u200cthat are critical for moving vast amounts of data within AI data centers.<\/p>\n “Given Google’s position, Broadcom stands to benefit from increased interest in specialized, energy-efficient chips, while its networking portfolio makes it a key supplier for the massive data center buildouts powering AI infrastructure,” \u2060said Emarketer analyst Jacob Bourne.<\/p>\n