Updated from 5:12 p.m. EST

Broadcom

(BRCM)

on Wednesday pushed its first-quarter guidance up sharply, saying that revenue will grow by 16% to 18%.

In late January, Broadcom predicted first-quarter sales would rise by up to 10% from the fourth quarter, implying revenue of $527 million -- far above the first-quarter then-consensus estimate of $463.9 million. Now, the company expects revenue to range from $555 million to $565 million.

The chipmaker said the gains are broad-based, driven by strong demand for broadband, wireless and mobile products. The company said that the upside to revenue did not seem to be a result of inventory build, an indication management believes its underlying business is improving.

Broadcom executives didn't offer EPS guidance, but did say gross margins should improve by as many as 100 basis points from the fourth quarter.

Broadcom surprised the market

late Tuesday with an announcement that it would hold a conference call "to discuss its stronger business outlook."

The announcement, which seemed to signal the raised guidance, was unusual. Typically, companies either issue quarterly guidance without giving prior notice, or schedule a mid-quarter update without commenting ahead of time on whether the direction of their business is up or down.

Although the market was prepared for higher guidance, the extent of Broadcom's revenue growth was still surprising, and the shares tacked on $1.45, or 3.4%, to $43.91 in after-hours trading. The stock added $3, or 7.6%, to $42.46 in regular trading Wednesday.

At least one hedge fund manager expected more gains on Thursday. "With lots of blowout numbers and impressive guidance all over the place tonight, this call and the guidance in it should be more than enough to get this stock popping

Thursday," wore Cody Willard on

StreetInsight

, the professional investor sister site of

TheStreet.com.