Broadcom’s forecast gives weary chip investors reason to cheer

Broadcom Corp headquarters in Irvine, California. (Bloomberg pic)

SAN FRANCISCO: Broadcom Inc gave semiconductor investors something to cheer about amid concerns about slowing growth.

The San Jose, California-based company’s revenue forecast for fiscal 2019 exceeded all but the highest analyst estimates, sending the shares up in extended trading.

That’s a relief for investors who have been anxious about sales of Apple Inc’s newest iPhones and weakness reported by other chipmakers this earnings season.

After two consecutive years of stellar gains, semiconductor-related companies have slumped in 2018. The Philadelphia chip index, composed of 30 companies involved in making semiconductors, has fallen 17% since its March peak.

Several chipmakers shrugged off anxieties on Thursday prompted by the arrest of a Huawei executive. Marvell Technology rose 3.8%, while Micron Technology Inc, Texas Instruments Inc and Intel Corp all gained more than 1%.

The semiconductor index fell as much as 2.6% before staging a late session reversal, closing with a loss of 0.5%.