Broadcom forecasts strong current-quarter sales on chip demand
(Reuters) - Broadcom Inc on Thursday forecast current-quarter revenue slightly above expectations, betting on higher demand for its chips that help power 5G technology and data centers.
The ramp up in 5G technology adoption is expected to boost demand for higher-priced chips used in phones and is likely to benefit semiconductor firms such as Broadcom.
The company, which also makes chips for data centers and servers, stands to benefit from an extended remote working trend as people wait for vaccines to roll out.
Broadcom forecast second-quarter revenue of about $6.5 billion, compared with analysts' estimates of $6.33 billion, according to IBES data from Refinitiv.
Revenue rose to $6.66 billion in the quarter ended Jan. 31 from $5.86 billion a year earlier. Analysts had expected revenue of $6.62 billion, according to IBES data from Refinitiv.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shounak Dasgupta)
© Copyright Reuters Ltd. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of Reuters Ltd.