Broadcom (NASDAQ:AVGO) shares surged in after-hours trading on Thursday and continued gaining in Friday's pre-market session, rising +11.08% to $199.33 as of 06:49 ET, after the company posted better-than-expected first-quarter results and guidance, signaling strong AI-related demand.

For the quarter ended February 2, Broadcom reported adjusted earnings of $1.60 per share, beating analysts' estimates of $1.50. Revenue climbed 25% year-over-year to $14.92 billion, surpassing the $14.61 billion consensus. Semiconductor solutions revenue was $8.21 billion, while infrastructure software revenue reached $6.7 billion.

CEO Hock Tan credited record revenue and adjusted EBITDA growth to AI semiconductor demand, with Q1 AI revenue soaring 77% year-over-year to $4.1 billion. Infrastructure software revenue also jumped 47% to $6.7 billion.

For the second quarter, Broadcom expects revenue of approximately $14.9 billion, ahead of the $14.59 billion estimate, with adjusted EBITDA projected at 66% of total revenue. AI semiconductor revenue is forecast to hit $4.4 billion as hyperscale firms continue investing in AI-focused chips and connectivity solutions.