Broadcom (AVGO) shares are surging greater than 8% in premarket buying and selling Friday after the chipmaker posted quarterly outcomes and an outlook that topped analysts’ expectations on the again of sturdy demand for its artificial intelligence (AI) semiconductors.

Broadcom reported adjusted earnings per share (EPS) of $1.60 on income that grew 25% year-over-year to $14.92 billion, each above Seen Alpha expectations. Its current-quarter projected income of $14.9 billion got here in barely forward of the consensus. 

The corporate stated its AI income jumped 77% within the quarter, with projections displaying continued enchancment in that space.

Citigroup caught with its purchase ranking on the inventory “given upside from AI” and $220 value goal, noting that the chipmaker’s AI power would offset any potential “draw back” from sanctions on TikTok mother or father ByteDance and any lack of the enterprise of supplying radio-frequency (RF) chips to Apple (AAPL) . Each China’s Bytedance and the Apple RF chip enterprise are projected at round 2% of Broadcom’s fiscal 2025 gross sales, Citi stated.

U.S. President Donald Trump has an April 5 deadline for TikTok to be bought or banned, though The Hill cited him as saying Thursday that it might be prolonged if a deal isn’t reached. Apple’s iPhone gross sales, in the meantime, have been slowing, threatening the RF chip enterprise.

Broadcom shares are up about 33% prior to now 12 months by way of Thursday, though they struggled initially of the yr given mounting considerations over tech giants’ massive AI spending and uncertainty in regards to the potential influence of the Trump administration’s insurance policies on tariffs and AI chip export curbs.