Stefan Mileschin

Higher demand for data centre tech

Broadcom predicted current quarter revenue largely above estimates on higher demand for components that power data centres.

The outfit also thinks that the launch of Apple new iPhones is expected to bolster its wireless business.

Shares of Broadcom rose four percent to $224.90 in extended trading after the chipmaker also reported third-quarter profit that was better than what the cocaine nose jobs of Wall-Street predicted.

Revenue from enterprise storage business jumped 70 percent in the reported quarter as the acquisition of Brocade helped drive sales gains at the unit.

Its wireless business, which makes chips for Wi-Fi, Bluetooth, and GPS connectivity, reported flat revenue, while its wired infrastructure unit, which makes components used in telecommunication networks, posted a four percent rise from a year earlier.

Chief Executive Officer Hock Tan said: “More than half our consolidated revenue is benefiting from strong cloud and enterprise data centre spending. This, coupled with a seasonal uptick in wireless, will drive our forecast revenue in the fourth quarter.”

The company expects Apple to drive a 25 percent rise in wireless revenue from the previous quarter, although it may be down in single-digit percentage compared with a year earlier.

https://fudzilla.com/news/47141-broa...earn-more-cash