Broadcom posted better-than-expected Q1 results, supported by strong growth in its artificial intelligence-related business. The group reported adjusted EPS of $2.05 and revenue of $19.31bn, above analysts' estimates. Revenue rose 29% year-on-year for the period ended February 1.

Demand for AI technologies strongly boosted activity. AI-related revenue more than doubled to $8.4bn, up 106%. According to Chief Executive Officer Hock Tan, the momentum is being driven by demand for custom AI accelerators and networking solutions for data centers. The semiconductor division generated $12.52bn in revenue, while the infrastructure software business reached $6.80bn.

For Q2, Broadcom forecasts revenue of around $22bn, well above the $20.56bn expected by the market, with an adjusted EBITDA margin of 68%. The group also announced a new share buyback program of up to $10bn and expects to generate $10.7bn in AI semiconductor revenue for the current quarter.

The stock was up nearly 0.5% in after-hours trading.