Broadcom's shares soared 12% in premarket trading on Friday as the chipmaker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.

Revenue from the company’s custom AI chips is soaring, with more potential customers in the pipeline.

The AI chipmaker offered an upbeat second-quarter outlook that was a silver lining in the otherwise downtrodden AI trade.

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Broadcom shares rose after the chip maker said quarterly revenue jumped. Artificial-intelligence revenue jumped 77% from a year earlier to $4.1 billion last quarter. Overall, revenue grew 25% to $14.9 billion,

Uncertainty about the impact of new U.S. tariffs weighed on stocks, along with worries about tightening chip export curbs, and competition from China as Alibaba unveiled its latest AI reasoning model, which it said rivals offerings from DeepSeek and ChatGPT maker OpenAI. Alibaba shares climbed about 1%.

While Broadcom may be a darling in the market's eyes, it's clear that Nvidia is still the better stock to buy right now. With Nvidia's stock a bit weak following earnings, investors should use this opportunity to scoop up shares of this dominant AI player.

The S&P 500 added 0.6% on Friday, March 7, after the February jobs report showed a slight recovery in hiring from the previous month.

Intel is rising on a report that two leading AI names are running manufacturing tests using its chipmaking technology.