During a conference call with analysts, Tan said Broadcom was ramping up production of AI chips for hyperscalers — a term that describes giant data center operators. He said the company’s custom semiconductors can be more effective in some cases than general-purpose accelerator chips, the kind of product sold by Nvidia Corp.

BROADCOM, a chip supplier for Apple and other big tech companies, jumped in late trading after an upbeat forecast assured investors that spending on artificial intelligence computing remains healthy.

Broadcom shares surged in after-hours trading on Thursday as the chip designer announced better than expected revenue and a confident outlook around artificial intelligence. The company, which designs custom AI chips and infrastructure for the biggest tech companies,