(Reuters) -Broadcom ( AVGO ) forecast fourth-quarter revenue above Wall Street estimates on Thursday, bolstered by strong demand for its custom AI chips as enterprise clients invest heavily in data centers and machine learning applications.

The company has been one of the biggest beneficiaries of the generative artificial intelligence boom, with hyperscale customers, including Google, adopting its custom accelerators due to their ability to process large quantities of data quickly.

Its chips have also emerged as an alternative to Nvidia's costly processors as companies look for hardware that can be tailored to specific needs as AI becomes increasingly advanced.

"We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4," said Broadcom ( AVGO ) CEO Hock Tan. Its AI revenue grew 63% to $5.2 billion in the third quarter ended August 3.

Broadcom ( AVGO ) has been aggressive in rolling out new chips to challenge Nvidia's dominant position in the AI semiconductor industry. This year it launched the Tomahawk Ultra networking chip and a next-generation Jericho networking chip to speed up AI compute.

Its shares were up nearly 1% in extended trading. They have risen over 30% so far this year, building on a more than threefold surge in the past two years.

Broadcom ( AVGO ) expects fourth-quarter revenue to be around $17.4 billion, compared with analysts' average estimate of $17.01 billion, according to data compiled by LSEG.

The company's third-quarter revenue of $15.95 billion beat the estimate of $15.83 billion.