June 12 (Reuters) - Tech conglomerate Broadcom ( AVGO )

raised its annual revenue forecast on Wednesday, betting on

higher demand for its networking equipment and custom chips from

businesses investing in artificial intelligence infrastructure.

Shares of the Palo Alto, California-based company, which

also unveiled a stock split, rose more than 9% in extended

trading.

The company will carry out a 10-for-1 forward stock split,

effective after markets close on July 12, with split adjusted

trading beginning on July 15.

Broadcom's ( AVGO ) shares have rallied more than 30% so far this

year, after almost doubling in 2023, as investors bet heavily on

chip stocks, anticipating towering gains at the back of

generative AI technology.

Broadcom ( AVGO ) manufactures advanced networking chips that help

move around vast amounts of data used by AI applications such as

OpenAI's ChatGPT, making it one of the big beneficiaries of

increased spending by tech giants.

Its custom chips unit has also attracted orders from large

cloud providers looking to reduce their dependence on Nvidia's ( NVDA )

pricey processors, which are in short supply.

The company expects full-year revenue of about $51 billion,

including contribution from VMware, compared with its prior

forecast of about $50 billion. Analysts on average expect fiscal

2024 revenue at $50.42 billion, according to LSEG data.

It reported net revenue of $12.49 billion for the second

quarter, compared with analysts' estimate of $12.03 billion.