Broadcom Inc (NASDAQ: AVGO) stock surged over 8.7% on 7 Sep, (as of 10:55 AM GMT-4 ; Source: Google finance) after the company has beaten the earnings estimates for the third quarter and gave better than expected quarterly sales forecast due to strong demand for data-center semiconductors. Overall, Broadcom’s third-quarter profit surged to $1.2 billion from $481 million a year earlier.

AVGO in the third quarter of FY 18 has reported the adjusted earnings per share of $4.98, beating the analysts’ estimates for the adjusted earnings per share of $4.83. The company had reported the adjusted revenue growth of 13 percent to $5.06 billion in the third quarter of FY 18, which is  as per the analysts’ estimates for revenue of $.506 billion. In the third quarter, the wired infrastructure and enterprise storage segments again drove revenue growth, offsetting continued weakness in wireless communications segment. For the third quarter 2018, enterprise storage revenue was $1.25 billion, representing 25% of revenue. In the third quarter, the industrial segment represented 5% of total revenues. Excluding IP licensing, the industrial business was up over 10% year-on-year. Distribution resales continued to be strong with double-digit Q3 year-on-year growth.

For the fourth quarter, Broadcom expects revenue to be in the range of $5.33 billion to $5.48 billion, while analysts expect revenue of $5.37 billion. Further, the company for the fourth quarter, expect networking and compute offload to continue to grow double digits year-on-year as strong demand from both the cloud and traditional enterprise sustain. However, cyclical headwinds the company have seen in video access including cable and satellite are persisting into the fourth quarter. And as a result, in the fourth quarter, AVGO expect wired to grow only mid single digits year-on-year. The wireless communications segment is expected to return to double-digit revenue growth in fiscal 2020, after a temporary dip in fiscal 2019. In addition, AVGO expect demand environment for industrial to remain strong and industrial resale to maintain double-digit year-on-year growth during the fourth quarter.

Meanwhile, the proposed $19 billion takeover, months after its $117 billion-plus hostile bid for Qualcomm Inc. was blocked by President Trump, represents a strategic move for Broadcom and would roughly triple the size of its current opportunity in the estimated $200 billion market for infrastructure technology

Additionally, In December, AVGO haad raised the dividend payouts to $1.75 a share from $1.02 a share.