Chipmaker Broadcom’s CEO, Hock Tan, gave a robust sales forecast for this quarter and claimed an order backlog of US$31 billion that is still expanding, allaying fears that spending on Internet infrastructure is slowing, according to Taipei Times.
Broadcom’s average lead time — the gap between getting an order and filling it — remains at 50 weeks, Tan said.
Revenue in the fiscal fourth quarter would be about US$8.9 billion, Broadcom said in a statement, compared with analysts’ average estimate of US$8.72 billion.
According to the report, the outlook suggests Broadcom is sidestepping a broader decline in chip demand, at least for now.
Broadcom is faring better than companies that focus on chips for PCs, where sales are slowing, because consumers are coping with inflation and putting off big-ticket purchases, says Taipei Times.
Nvidia revealed an additional headache this week when it said that new restrictions on exporting to China could hurt sales. Broadcom, which gets about 30 percent of its chip revenue from China, has not received a notice from the US government and does not expect to, Tan said.
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