Semiconductor firm Broadcom Inc. reported higher-than-expected revenue today thanks to huge demand for its computer chips.

It offered a bullish forecast too, saying demand from cloud infrastructure companies and service providers shows no sign of slowing down.

The company reported a second-quarter profit before certain costs such as stock compensation of $6.62 per share. Overall revenue rose 15% from a year ago, to $6.61 billion. Wall Street had been modeling a profit of $6.43 per share on revenue of $6.5 billion.

Broadcom Chief Executive Hock Tan said customers have been clamoring for the company’s computer chips in multiple markets, helping its semiconductor revenue grow by 20% year-over-year.

Broadcom is primarily a chipmaker, and its products are used in numerous industries ranging from data centers and networking gear to wireless devices and industrial equipment. The company also has a smaller infrastructure software business focused on mainframes, cybersecurity, automation and monitoring.

The semiconductor unit reported revenue of $4.82 billion, comfortably ahead of the $4.68 billion forecast by analysts. Infrastructure software revenue added an additional $1.8 billion to the company’s bottom line as it grew 4% from the same quarter one year ago.

Broadcom is seeing enormous demand for its products thanks to a global shortage of semiconductors that’s unlikely to end anytime soon. So that might explain why the better-than-expected performance today didn’t raise too many eyebrows, and its stock barely moved in after-hours trading.

Holger Mueller, an analyst with Constellation Research Inc., said he was impressed with Broadcom’s quarterly revenue and profit growth. “It did so while digesting a $1.5 billion-plus investment into its research and development, which is quite remarkable,” Mueller pointed out. “Now, the market will be watching to see if it can continue executing throughout the chip shortage.”

Analyst Patrick Moorhead of Moor Insights & Strategy told SiliconANGLE that Broadcom’s strong results were mostly the result of its experienced leadership.

“If anyone knows how to best squeeze blood from a stone during a chip supply crisis, it’s Broadcom CEO Hock Tan,” Moorhead said. “While Broadcom isn’t any better than its larger rivals in optimizing its supply chain, the company knows how to strategically raise prices.”

Looking ahead, Broadcom said it sees third-quarter revenue of $6.75 billion, ahead of Wall Street’s forecast of $6.57 billion in sales. It didn’t provide any guidance on earnings.

“Our third-quarter outlook projects this year-over-year growth to sustain, as we continue to see strong demand from service providers and hypercloud,” Tan said.

Photo: Broadcom