Broadcom Inc forecast fourth-quarter revenue above Wall Street on Thursday after growing demand for its 5G semiconductors and the shift to a hybrid work model.
The company’s wireless division is also benefiting from the latest iPhones, which are due to hit the market this month.
Analysts have noted that the switch to 5G may possibly boost demand for Broadcom’s radio frequency and wireless chips, which enable devices to connect to Bluetooth and Wi-Fi.
Broadcom expects revenue of about $7.35 billion for the current quarter, compared with analyst estimates of $7.23 billion, according to IBES data from Refinitiv.
Revenue for the third quarter ended August 1 rose 16% to $6.78 billion, beating expectations of $6.76 billion.
The company also makes chips for data centers and servers, meaning that rapid migration to the cloud and a rebound in corporate spending will boost Broadcom’s revenue in a post-pandemic world, as many companies opt for a hybrid business model.
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