During a conference call with analysts, Tan said Broadcom was ramping up production of AI chips for hyperscalers — a term that describes giant data center operators. He said the company’s custom semiconductors can be more effective in some cases than general-purpose accelerator chips, the kind of product sold by Nvidia Corp.

Broadcom's shares soared 12% in premarket trading on Friday as the chipmaker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.

BROADCOM, a chip supplier for Apple and other big tech companies, jumped in late trading after an upbeat forecast assured investors that spending on artificial intelligence computing remains healthy.