Business

Broadcom forecasts upbeat current-quarter sales on 5G ramp up

Broadcom Inc forecast current-quarter revenue above Wall Street expectations on Thursday, as the semiconductor firm is set to benefit from the rising adoption of 5G technology.

The Broadcom Limited company logo is shown outside one of their office complexes in Irvine, Califor
FILE PHOTO: The Broadcom Limited company logo is shown outside one of their office complexes in Irvine, California, U.S., March 4, 2021. REUTERS/Mike Blake

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REUTERS: Broadcom Inc forecast current-quarter revenue above Wall Street expectations on Thursday, as the semiconductor firm is set to benefit from the rising adoption of 5G technology.

As the global roll-out of 5G ramps up, strong demand for higher-priced chips used in smart phones will benefit Broadcom, which counts iPhone maker Apple Inc as a major customer.

The company, which makes chips for data centers and servers, estimates third-quarter revenue to be about US$6.75 billion, compared with analysts' estimates of US$6.6 billion, according to Refinitiv IBES data.

Revenue rose to US$6.61 billion in the second quarter ended May 2, from US$5.74 billion a year earlier. Analysts had expected revenue of US$6.51 billion.

(Reporting by Eva Mathews and Chavi Mehta in Bengaluru; Editing by Amy Caren Daniel)

Source: Reuters