Broadcom's shares soared 12% in premarket trading on Friday as the chipmaker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.

Broadcom's share price rose by as much as 14% in extended trading, after the firm reported healthy demand for its custom AI chips.

Broadcom shares surged in after-hours trading on Thursday as the chip designer announced better than expected revenue and a confident outlook around artificial intelligence. The company, which designs custom AI chips and infrastructure for the biggest tech companies,