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Broadcom Rallies After Forecast Suggests It’s Evading Chip Slump

  • Chipmaker says spending on infrastructure remains strong
  • Report contrasts with more pessimistic views from chip peers
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WATCH: Broadcom is giving a strong forecast and suggests the company is sidestepping a demand slump hitting other suppliers. Su Keenan reports.Source: Bloomberg
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Broadcom Inc. shares rose the most in three months after the chipmaker gave a strong sales forecast for the current quarter, allaying fears that spending on internet infrastructure is slowing. 

Revenue in the fiscal fourth quarter will be about $8.9 billion, Broadcom said in a statement Thursday, compared with an average analyst estimate of $8.72 billion. The shares advanced as much as 5.7% to $519.81 in New York following the report, the biggest intraday gain since May 27.