(Reuters) -Broadcom ( AVGO ) said on Monday it was launching a new share buyback program of up to $10 billion, set to run through the end of the year.

Shares of the chipmaker rose nearly 3% in extended trading.

During buybacks, firms buy their own shares on the stock exchange, reducing the proportion of shares held by investors, offering a way for companies to return cash to shareholders.

CEO Hock Tan said the move reflects confidence in Broadcom's ( AVGO ) semiconductor and infrastructure software franchises, particularly its position in artificial intelligence-related investments.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)