Broadcom Inc (NASDAQ:AVGO) stock rose 1.35% (As on Sep 3, 11:03:36 AM UTC-4, Source: Google Finance) after the company forecast fourth-quarter revenue to be above Wall Street expectations, on the back of strong demand for its semiconductors from the adoption of 5G technology and a shift to hybrid work models. The analysts have indicated that the 5G transition, which is still in its nascent stage, is expected to boost demand for Broadcom’s radio frequency and wireless chips that help devices connect to Bluetooth and Wi-Fi. The Company’s cash and cash equivalents at the end of the third quarter were $11,105 million, compared to $9,518 million at the end of the prior quarter. During the third quarter of 2021, the Company has generated $3,541 million in cash from operations and spent $115 million on capital expenditures. The company has generated $3.4 billion in free cash flow or 51% of revenue in the quarter, and expects free cash flow to remain strong in the fourth quarter.

AVGO in the third quarter of FY 21 has reported the adjusted earnings per share of $6.96, beating the analysts’ estimates for the adjusted earnings per share of $6.88, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 16 percent to $6.78 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue by 0.32%. The revenue for the semiconductor solutions segment grew 19% to $5 billion and represented 74% of total revenue in the quarter. The revenue for infrastructure software rose 10% to $1.8 billion and represented 26% of revenue.

Additionally, the company has now declared a quarterly cash dividend on its common stock of $3.60 per share. The common stock dividend is payable on September 30, 2021 to common stockholders of record at the close of business on September 22, 2021. The company has also approved a quarterly cash dividend on its 8.00% Mandatory Convertible Preferred Stock, Series A, of $20.00 per share.

Broadcom forecast current-quarter revenue to be about $7.35 billion, compared with analysts’ estimates of $7.23 billion, according to IBES data from Refinitiv. For the fourth quarter, the company expects Adjusted EBITDA to be of approximately 61 percent of projected revenue.  In Q4, the company expects wireless revenue to ramp approximately 33% sequentially in support of the launch of next-generation smartphones and to be up 25% year on year.