The prospect of AI growth helped cheer investors, who initially sent the shares down after the report was released. Broadcom sales are growing at the slowest pace since the early days of the pandemic, with corporate customers and telecom providers reining in their spending.
Broadcom Inc, a chip supplier for Apple Inc. and other big tech companies, expects the rapid expansion of artificial intelligence computing to help offset its worst slowdown since 2020.
Revenue from networking semiconductors used to support AI systems now accounts for 15% of the company’s total chip sales, and that portion will grow to more than 25% in fiscal 2024, Broadcom said Thursday after releasing its quarterly results.
