Broadcom forecast third-quarter revenue above Wall Street estimates Thursday, betting on strong demand for its networking and custom AI computing chips.

The company's shares fell 2.8% in extended trading as the forecast failed to impress investors.

Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG.

The company, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google.

"We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said.