Broadcom forecast second-quarter revenue above Wall Street expectations on Thursday due to strong demand for its custom artificial intelligence chips from companies processing big data. Its forecast eased some of the concerns about the thirst for AI chips after Marvell Technology's spooked the market on Wednesday.

The strong results helped to ease concerns about beaten-down AI stocks, which surfaced yesterday after fellow chipmaker Marvell Technology Inc. only just delivered to expectations and fell sharply Thursday morning. Broadcom’s stock surged more than 12% after-hours.

Broadcom Inc., a chip supplier for Apple Inc. and other big tech companies, soared in late trading after an upbeat forecast reassured investors that spending on artificial intelligence computing remains healthy.