Semiconductor firm Broadcom reported 15 percent increase in revenue to $7.41 billion and net income of $1,989 million in fourth-quarter.
Broadcom forecast first-quarter revenue of about $7.60 billion, anticipating around 14 percent growth — banking on a rebound in enterprise spending and sustained demand from cloud computing companies.
Analysts have pointed to strong near-term demand for Broadcom’s radio frequency and wireless chips as telecom firms spend more to roll out 5G technology, and strength in its broadband division. The company counts smartphone giants Apple and Samsung Electronics among major customers.
The San Jose, California-based Broadcom is also poised to benefit from higher demand for its data-center and server chips, aided by a rise in hybrid working models and a rapid shift to cloud by businesses during the pandemic.
Enterprise demand rebounded sharply over 30 percent in the reported quarter, while revenue from semiconductor solutions is expected to grow 17 percent in the current quarter, Chief Executive Hock Tan said on a conference call with analysts.
Broadcom has diversified beyond its core chip business and forayed into the lucrative software arena, at a time when the world grapples with supply chain disruptions and an industry-wide chip shortage. Its infrastructure software revenue grew 8 percent to $1.77 billion in the fourth quarter.
