Artificial intelligence (AI) chips are specialized processors designed to accelerate AI tasks like machine learning and deep learning. Broadcom, a major semiconductor firm, is a key supplier of custom AI chips. Recent reports indicate a surge in demand for these chips, positively impacting Broadcom's financial outlook. - Broadcom's shares experienced a significant increase due to a positive revenue forecast, indicating strong demand for its custom AI chips. - The demand for Broadcom's AI chips is primarily driven by cloud computing companies seeking alternatives to Nvidia's processors for expanding their AI infrastructure. - Broadcom anticipates revenue of $4.4 billion in the second quarter specifically from its AI semiconductors. - This positive outlook from Broadcom contrasts with a more pessimistic forecast recently issued by Marvell Technology, which had initially caused concerns about the AI chip sector. - Broadcom's CEO, Hock Tan, highlighted the investment of hyperscale customers in custom AI chips for data centers as a key factor in the company's growth.