March 7 (Reuters) - Tech conglomerate Broadcom ( AVGO )

beat market estimates for first-quarter revenue on Thursday, as

cloud providers continue to upgrade data centers to support

artificial intelligence, helping drive demand for its advanced

networking chips.

However, the company did not update its annual revenue

forecast of $50 billion, which still falls short of

expectations, likely disappointing investors.

Broadcom's ( AVGO ) recently high-flying stock dipped about 2% in

extended trade. The stock's value had almost doubled in value in

2023.

Still, a generative AI push across the tech landscape has

prompted firms to increase spending on infrastructure, pushing

demand for Broadcom's ( AVGO ) chips which allow different parts of large

cloud companies' systems to communicate with one another.

Complex data centers, which are involved in the development

of generative AI, are obsolete without networking gear from

providers such as Broadcom ( AVGO ) to support it. This has successfully

embedded Broadcom ( AVGO ) in supply chains, making it one of the larger

beneficiaries of AI.

While widely known as a chipmaker, Broadcom's ( AVGO ) portfolio has

now widened to include various tech firms such as VMware and

software company CA technologies.

Such buyouts have expanded the company's software offerings,

which analysts believe contribute significantly to its revenue

growth.

The company reported quarterly net revenue of $11.96

billion, below analysts' average estimate of $11.72 billion,

according to LSEG data.

Broadcom ( AVGO ) reported adjusted first-quarter net income of $5.25

billion, compared with analysts' estimates of $5.01 billion