Marvell Technology (MURLY) is the latest tech firm to claim to benefit from the boom artificial intelligence (AI)and shares soared Friday after the company reported its first-quarter results.
Marvell, which makes networking chips used in data centers, said in its earnings report that revenue would “accelerate” in the second half of the year due to demand for its AI products.
“AI has proven to be a key growth driver for Marvell,” said CEO Matt Murphy. He added that while Marvell is still in the early stages of ramping up AI production, “we predict that AI revenue will at least double in fiscal year 2024 from the prior year, and will continue to grow rapidly in the coming years.”
Marvell expects AI revenue to be about $400 million this year and $800 million in 2024. Yesterday Nvidia (NVDA) shares surged after the semiconductor maker also saw sales of its AI products rise.
Q1 results beat estimates
In its fiscal first quarter, Marvell posted earnings per share (EPS) $0.31, which beat analysts’ estimates. Revenue fell 8.7% to $1.32 billion, but also beat estimates. Following the news, analysts at Deutsche Bank and KeyBanc raised their price targets on the stock.
Marvell shares rose more than 30% today to their highest level in more than a year. They are up 34% year-to-date, more than double the 16% rise in the broader Consumer sector sector over the same period.
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