Marvell Technology, Inc. (NASDAQ: MRVL) has witnessed an impressive surge of 28%, marking its biggest intraday increase since October 2001. The chipmaker’s stock soared after announcing its expectations for a significant revenue boost from artificial intelligence (AI) this year.
On Friday, Marvell’s shares reached a high of $63.42 in New York, resulting in a year-to-date gain of over 70%.
Marvell revealed in a statement on Thursday that sales of AI-related products are projected to at least double during its current fiscal year. This growth is attributed to the thriving spending trend in the AI industry, which has also propelled Nvidia Corp. to a record-setting rally this week. In addition, Marvell’s adjusted earnings for the first quarter surpassed analysts’ estimates.
In the statement, Marvell CEO Matt Murphy emphasized the significance of AI as a key growth driver for the company. He highlighted the company’s leading network connectivity products and emerging cloud-optimized silicon platform that enable this growth. Murphy stated that although the AI ramp is still in its early stages, Marvell foresees doubling its AI revenue in fiscal 2024 compared to the previous year. Furthermore, the company expects continued rapid growth in the coming years.
Investors in the chip industry are actively investing in companies with promising AI prospects. Nvidia’s optimistic forecast propelled its market value beyond $930 billion on Thursday and boosted the shares of other semiconductor and AI technology providers.
Marvell also shared that its revenue for this quarter is expected to reach approximately $1.33 billion, aligning closely with analysts’ predictions.
