Broadcom on Thursday forecast current-quarter revenue largely above estimates on higher demand for components that power data centers, while the launch of Apple's new iPhones is expected to bolster its wireless business.
Shares of Broadcom rose 8.8 percent to $234.96 on Friday after the chipmaker also reported third-quarter profit that topped analysts' estimates.
Revenue from enterprise storage business jumped 70 percent in the reported quarter as the acquisition of Brocade helped drive sales gains at the unit.
Its wireless business, which makes chips for Wi-Fi, Bluetooth, and GPS connectivity, reported flat revenue, while its wired infrastructure unit, which makes components used in telecommunication networks, posted a 4 percent rise from a year earlier.
"More than half our consolidated revenue ... is benefiting from strong cloud and enterprise data center spending," Chief Executive Officer Hock Tan said on a post-earnings call with analysts.