Chipmaker Broadcom raised its forecast for fiscal 2024 artificial intelligence revenue, citing higher demand for networking equipment and growing orders for its custom chips business.

However, the company reported a loss of $1.88 billion in the quarter on a GAAP basis, compared with a profit of $3.30 billion a year ago.

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

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

Its third-quarter revenue came in at $13.07 billion, beating estimates of $12.97 billion, according to LSEG data.

The company expects AI revenue to be $12 billion for the year, up from its earlier expectation of $11 billion.

Broadcom's custom chips, which are used to move around large quantities of data, have seen increased orders from companies looking to streamline their data operations.

The company has benefited from the AI boom, which has driven demand for significant processing capacity with the emergence of applications like OpenAI's ChatGPT.

The company does face stiff competition from Nvidia's InfiniBand technology which rivals its own ethernet switch chip, Jericho3-AI.