Broadcom’s raised AI chip forecast lifts tech stocks across Asia

Technology and semiconductor stocks across Asia rallied on Thursday after Broadcom ↗ 0.21% reported blowout quarterly results and forecast strong artificial intelligence chip demand over the next two years, reinforcing investor confidence in the AI spending cycle.

Broadcom Fuels AI Optimism

Broadcom said on Wednesday that it expects AI chip revenue of about $115 billion in fiscal 2027, up from a prior forecast of $100 billion, and projected that figure would roughly double to $230 billion in fiscal 2028. Third-quarter AI chip sales more than tripled year over year to $16.7 billion, helping total revenue reach $29.6 billion and beat analyst estimates. Bookings for Broadcom's custom AI accelerators topped $30 billion in the quarter alone.gurufocus+1

The results underscored how AI infrastructure spending is broadening beyond Nvidia ↗ 0.84% to benefit suppliers of custom chips and networking components. Dell Technologies ↗ 1.50% added to the positive sentiment earlier in the week, surging 15.8% on Wall Street after reporting record quarterly revenue of $47 billion, up 58% year over year.investors.delltechnologies+1

Asian Markets Rebound

The upbeat guidance rippled across Asian trading floors on Thursday. The MSCI Asia Pacific Index rose 1.1%, rebounding from Wednesday's sell-off. South Korea's SK Hynix ↗ 8.14% was among the top gainers, while the Kospi closed higher. In Tokyo, SoftBank Group rose 2.9% and Tokyo Electron gained 0.8%, helping the Nikkei 225 advance modestly. Japan's trading houses also rallied, with Mitsubishi Corp. surging nearly 5% after Berkshire Hathaway ↘ 0.41% CEO Greg Abel reaffirmed the firm's commitment to Japanese investments.wbal+1

Jason Lui, head of APAC equity derivatives strategy at BNP Paribas, said Asian equities were "staging a modest recovery from yesterday's sell-off, benefiting from upbeat guidance from US tech companies overnight, with semiconductor and AI-related stocks rebounding".finance.biggo

Broader Context

The tech-led rebound came against a backdrop of easing geopolitical tensions after President Donald Trump said he did not expect the U.S. bombing campaign against Iran to last "much longer," helping oil prices pull back from recent highs. Bond yields also stabilized, with the U.S. 10-year Treasury yield holding near 4.77% after a global sell-off earlier in the week. Market attention now turns to Friday's U.S. nonfarm payrolls report, which could shape expectations around Federal Reserve policy.wbal+1