In addition, the chipmaker now expects it Q4 gross margin to be down 50-75 bps Q/Q (prior guidance was for a 50-100 bps drop), and for its R&D/SG&A expenses to be up only $30M-$50M Q/Q (prior guidance was for a $30M-$50M increase). The guidance hike comes as Broadcom's analyst day gets going (webcast).
Broadcom attributes the improved top-line guidance to "better-than-expected revenue in each reportable segment, particularly in Infrastructure & Networking." It's worth noting optical component vendor Finisar recently provided strong guidance, thanks in large part to healthy data center-related sales. The major investments being made by Web/cloud service providers in their data center infrastructures could be playing a role.