Shares of the company rose 6.6% to $622 in extended trading.
Analysts have pointed to strong near-term demand for Broadcom<\/a>'s radio frequency and wireless chips as telecom firms spend more to roll out 5G technology, and continued strength in its broadband division. The company counts smartphone giants Apple Inc<\/a> and Samsung Electronics<\/a> among major customers.
Broadcom is also poised to benefit from higher demand for its data-center and server chips, aided by a rise in hybrid working models and a rapid shift to cloud by businesses during the pandemic.
Enterprise demand rebounded sharply over 30% in the reported quarter, while revenue from semiconductor solutions is expected to grow 17% in the current quarter, Chief Executive Hock Tan said on a conference call with analysts.
The San Jose, California-based company forecast first-quarter revenue of about $7.60 billion, well above analysts' average estimate of $7.25 billion, according to Refinitiv data.
Fourth-quarter revenue rose 15% to $7.41 billion, narrowly beating estimates of $7.36 billion, while earnings per share of $7.81 was also better than expected.
Broadcom has also diversified beyond its core chip business and forayed into the lucrative software arena, at a time when the world grapples with supply chain disruptions and an industry-wide chip shortage. Its infrastructure software revenue grew 8% to $1.77 billion in the fourth quarter.
The new share repurchase program is effective until the end of next year, the company said in a separate statement.
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