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

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, 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.

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’s stock rose more than 15% in extended trading. The shares had earlier closed at $179.45 in regular New York trading, leaving them down 23% in 2025.

Broadcom shares rallied after the company posted strong first-quarter earnings and guidance and signaled ongoing AI demand.

Broadcom's shares rose 6% on Friday as the semiconductor maker'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.