Broadcom Gives Upbeat Sales Forecast on Data-Center Growth
- Solid outlook helps counter concern chip sector heading down
- CEO Tan says he’s buying CA for access to new set of customers
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Chipmaker Broadcom Inc. gave a quarterly sales forecast that topped analysts’ estimates on strong demand for data-center semiconductors. The stock rallied in extended trading, following an earlier sell-off in chip industry shares.
Revenue will be about $5.4 billion, plus or minus $75 million, in the fiscal fourth quarter, which ends in October, the San Jose-based company said Thursday in a statement. Analysts had projected sales of $5.36 billion, according to the average of estimates compiled by Bloomberg.