Marvell Technology (MRVL) is the latest tech firm to say it is benefitting from the boom in artificial intelligence (AI), and shares skyrocketed on Friday after the company released its first-quarter earnings.
Marvell, which manufactures networking chips used in data centers, said in its earnings report that revenue will "accelerate" in the second half of the year because of demand for its AI products.
"AI has emerged as a key growth driver for Marvell," CEO Matt Murphy said. He added that while Marvell is still in the early stages of its ramp-up in AI production, "we are forecasting AI revenue in fiscal 2024 to at least double from the prior year and continue to grow rapidly in the coming years."
Marvell expects AI sales to be about $400 million this year, and $800 million in 2024. Yesterday, Nvidia (NVDA) shares soared after the semiconductor maker also noted that sales of its AI products were taking off.
Q1 Results Beat Estimates
In its fiscal first quarter, Marvell posted earnings per share (EPS) of $0.31, exceeding analysts' forecasts. Revenue fell 8.7% to $1.32 billion, but also beat estimates. Following the report, analysts at Deutsche Bank and KeyBanc raised their price targets for the stock.
Marvell shares rose more than 30% today to their highest level in more than a year. They're up 34% year-to-date, more than double a 16% gain for the broader consumer discretionary sector over the same period.