Updated from Aug. 18
The closely watched communications chipmaker boosted its forecast for September-quarter sales amid what it called strong bookings, suggesting revenue will rise 10% from the prior quarter.
Hoping to ease worries over the prospects of its server chip amid impending competition from Intel (INTC - Get Report), Broadcom also endorsed analyst consensus estimates for 2004. The company said those estimates will hold true even if the server chip subsidiary sees a worst-case scenario in revenue.The news prompted at least two equity analysts to upgrade the stock Tuesday morning. Thomas Weisel raised the shares to outperform from peer perform, saying the company "continues to emerge as the premier name in the communications IC space." CIBC raised the stock to sector outperform from sector perform, saying concerns about its ServerWorks unit have been allayed and are reflected in existing estimates. The company's shares were recently up $1.55, or 7%, to $24.31 on the Instinet premarket session. In regular trading Monday, the shares added $1.59 to $22.85 in a session that saw robust gains across techland. On the conference call, Broadcom sought to dispute perceptions of trouble in its server chip subsidiary. In March, the