Best Buy raises annual forecasts as AI spurs device upgrades

Aug. 27 (Reuters) - Best Buy raised its full-year sales and profit forecasts on Thursday, betting on an AI-fueled device upgrade and growth in newer businesses such as advertising and its marketplace to offset weakness in discretionary spending.

The top U.S. electronics retailer expects annual revenue of $42.3 billion to $42.8 billion, compared with its earlier forecast of $41.2 billion to $42.1 billion.

The company has benefited from an artificial intelligence-driven hardware upgrade cycle as shoppers replace older computers and smartphones with ones equipped with the latest technology.

Best Buy also raised its forecast for annual earnings per share to $6.70 to $6.90 on an adjusted basis, compared with the $6.30 to $6.60 estimated earlier.

The company's shares, which have gained about 30% so far this year, were down about 3% in choppy premarket trading.