(Reuters) – Chipmaker Broadcom (AVGO) raised its fiscal 2024 revenue forecast for its artificial intelligence business, citing higher demand for networking equipment and rising orders for its custom chip business.

However, the company reported a GAAP loss of $1.88 billion for the quarter, compared to a profit of $3.30 billion a year earlier.

Shares of the Irvine, California-based company fell more than 3% in extended trading.

The net loss includes a one-time, non-cash tax provision of $4.5 billion resulting from the intra-group transfer of certain intellectual property rights to the United States as part of a supply chain realignment.

Third-quarter revenue was $13.07 billion, according to LSEG data, beating estimates of $12.97 billion.

The company expects AI revenue of $12 billion for the year, above its original expectation of $11 billion.

Broadcom’s custom chips, used to transport large amounts of data, are seeing increasing orders from companies looking to streamline their data operations.

The company has benefited from the AI ​​boom, which has increased demand for significant processing capacity with the emergence of applications such as OpenAI’s ChatGPT.

The company faces strong competition from Nvidia’s InfiniBand technology, which competes with its own Jericho3-AI Ethernet switch chip.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)