Generalized Hopf bifurcations in a laser diode system are considered. The periodic orbit immediately following the generalized Hopf bifurcation is constructed using the method of multiple scales, and its stability is analyzed. Numerical solutions reveal the existence of stable periodic attractors, attractors at infinity, and bounded chaotic dynamics in various cases. The dynamics are explained on the basis of the bifurcations occurring. Chaotic regimes are characterized using power spectra, autocorrelation functions and fractal dimensions.