(Reuters) – Chip company Broadcom Inc forecast second-quarter revenue above Wall Street estimates on Thursday, encouraged by strong demand from enterprise and cloud clients, and the ramp up in 5G technology.
A recovery in enterprise spending and increased applications of cloud computing has benefited Broadcom, which supplies chips for data-center storage, servers, networking gear and broadband devices.
On the other hand, the company, which counts Apple Inc as a major customer, is poised to gain from the global 5G roll-out, which is likely to boost demand for its chips used in handsets, telecom equipment and other devices.
The company forecast current-quarter revenue of about $7.9 billion, compared with analysts’ average estimate of $7.43 billion, according to IBES data from Refinitiv.
Adjusted revenue for the quarter ended Jan. 30 was $7.71 billion. Analysts on average had expected revenue of $7.60 billion.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee; Editing by Maju Samuel)
