Broadcom Inc. (NASDAQ:AVGO) shares are trading higher during Monday’s premarket session as chip and mega-cap tech sentiment improves alongside a broad risk-on tape. Nasdaq futures are up 0.95% while S&P 500 futures have gained 0.79%.

The move comes as Broadcom continues to deepen its push into the artificial intelligence infrastructure market with new high-speed networking chips designed for AI data centers.

New Chip Announcement

Last week, Broadcom disclosed that its Tomahawk 6 networking chip has entered full production and is now shipping to customers. The company said the new chip can handle twice as much data as its previous version, helping companies build bigger and faster AI systems.

Also, Broadcom introduced a new chip, Taurus BCM83640, designed to help move large amounts of data more efficiently inside data centers that support AI.

The company said the chip can support 1.6-terabit data modules, which help data centers handle growing traffic from AI applications. These modules can move twice as much data per connection as previous designs, helping data centers ...