(Reuters) – Chipmaker Broadcom (NASDAQ:) raised its fiscal 2024 artificial intelligence revenue forecast, citing stronger demand for networking equipment and rising orders for its custom chip business.
However, the company reported a GAAP loss of $1.88 billion, compared with a profit of $3.30 billion a year earlier.
Shares of the Irvine, California-based company fell more than 3% in evening trading.
The net loss includes a one-time tax provision of $4.5 billion resulting from the intra-group transfer of certain intellectual property rights to the United States as part of a supply chain restructuring.
The company’s third-quarter revenue was $13.07 billion, beating estimates of $12.97 billion, according to LSEG.
The company expects AI revenue to hit $12 billion this year, up from $11 billion previously.
Broadcom’s custom chips for high-volume data transfer are seeing increasing interest from companies looking to streamline their data operations.
The company has benefited from the rise of artificial intelligence (AI), which has led to an raise in demand for significant computing power thanks to the emergence of applications such as OpenAI’s ChatGPT.
The company faces stiff competition from Nvidia’s (NASDAQ:) InfiniBand technology, which competes with its own Ethernet switch chip, the Jericho3-AI.
