Broadcom said on Monday it was launching a new share buyback program of up to $10 billion, set to run through the end of the year, sending its shares up nearly 3% in extended trading.

CEO Hock Tan said the move reflects confidence in Broadcom's semiconductor and infrastructure software franchises, particularly its position in artificial intelligence-related investments.

Shares of Palo Alto Networks, California-based Broadcom, which has a market value of about $724.76 billion, closed about 5% higher on Monday, snapping a two-day losing streak amid U.S. President Donald Trump's tariff announcement .

Broadcom, which supplies semiconductors to Apple, last month forecast strong second-quarter revenue and hinted about new potential customers that could boost revenue in a highly competitive market.

The chipmaker is seeing red-hot demand for its custom AI chips from cloud computing companies looking for an alternative to the costly processors designed by NVIDIA.