(Reuters) – Chipmaker Broadcom (AVGO) raised its revenue forecast for artificial intelligence in fiscal 2024, citing increased demand for networking equipment and growing orders for its custom chip business.
However, the company reported a loss of $1.88 billion in the quarter on a GAAP basis, compared with a profit of $3.30 billion a year ago.
Shares of the Irvine, Calif.-based company fell more than 3% in extended trading.
The net loss includes a one-time non-cash tax provision of $4.5 billion, resulting from an intra-group transfer of certain intellectual property rights in the United States as part of a supply chain realignment.
Its third-quarter revenue was $13.07 billion, beating estimates of $12.97 billion, according to LSEG data.
The company expects AI revenue to be $12 billion for the year, up from its previous forecast of $11 billion.
Broadcom’s custom chips, used to move large amounts of data, have seen a surge in orders from companies looking to streamline their data operations.
The company has benefited from the rise of AI, which has driven demand for massive processing power with the emergence of applications like OpenAI’s ChatGPT.
The company faces stiff competition from Nvidia’s InfiniBand technology, which rivals its own Ethernet switching chip, Jericho3-AI.
(Reporting by Zaheer Kachwala in Bangalore; Editing by Tasim Zahid)
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
