Broadcom Inc. AVGO shares jumped 12.82% in after-hours trading Thursday after reporting better-than-expected first-quarter results, recovering from a 6.33% drop during regular trading hours amid a broader artificial intelligence chip selloff.

What Happened: The semiconductor giant posted first-quarter revenue of $14.92 billion, surpassing analyst estimates of $14.61 billion, along with adjusted earnings of $1.60 per share, exceeding the expected $1.49 per share, according to Benzinga Pro data.

The Future Fund LLC Managing Partner Gary Black highlighted Broadcom’s strong performance stating, “This should help AI stocks tomorrow.”

CNBC’s Jim Cramer shared a similar sentiment, writing, “Whoever is walking down Broadcom right now I think is making a mistake.”

The company expects continued AI momentum, projecting second-quarter AI semiconductor revenue of $4.4 billion as “hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.” Overall second-quarter revenue guidance stands at approximately $14.9 billion, above analyst estimates of $14.76 billion.

See Also: Jeff Bezos Brings Amazon's Hard-Charging Culture, 50-Hour Workweek To Blue Origin: CEO Says Growth Led To ‘More Bureaucracy…Less Focus'

Why It Matters: The selloff in AI chip stocks on Thursday included Nvidia Corp. NVDA, Advanced Micro Devices, Inc. AMD, and Taiwan Semiconductor Manufacturing Co. TSM, which fell in sympathy with Marvell Technology Inc.‘s MRVL weaker guidance.

Broadcom has a consensus price target of $537.08 based on 26 analyst ratings, with recent targets from Morgan Stanley, Barclays, and Mizuho averaging $255.33.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.