Marvell Jumps the Most in Two Decades on AI Sales Growth
(Bloomberg) -- Marvell Technology Inc. surged as much as 28% — the biggest intraday increase since October 2001 — after the chipmaker said it expects revenue from artificial intelligence to soar this year.
Most Read from Bloomberg
Wall Street Banks Are Using AI to Rewire the World of Finance
Debt-Limit Deal Passes the House, Easing US Default Concerns
Billionaire Perot Warns of Real Estate Recession as Loans Dry Up
Shares of Marvell climbed as high as $63.42 in New York on Friday, bringing its year-to-date gain to more than 70%.
Sales of AI-related products will at least double in its current fiscal year, Marvell said in a statement Thursday, as it capitalizes on a spending boom that also sent Nvidia Corp. on a record-setting rally this week. Adjusted earnings for the first quarter also came in just above analysts’ estimates.
“AI has emerged as a key growth driver for Marvell, which we are enabling with our leading network connectivity products and emerging cloud optimized silicon platform,” Chief Executive Officer Matt Murphy said in the statement. “While we are still in the early stages of our AI ramp, we are forecasting our AI revenue in fiscal 2024 to at least double from the prior year and continue to grow rapidly in the coming years.”
Chip investors are piling money into companies with AI growth prospects. A rosy forecast by Nvidia helped send its market value past $930 billion Thursday and lifted shares of other providers of semiconductors and artificial intelligence technology.
Read More: Nvidia’s Blowout Forecast Sparks Huge Rally in All Things AI
Marvell said revenue this quarter will be about $1.33 billion, roughly in line with analysts’ predictions.
(Updates shares starting in first paragraph.)
Most Read from Bloomberg Businessweek
Harvard MBA Grads Enter a Tepid Job Market Hoping for the Best
Goldman CEO Loves Summer Camp So Much He’s Expanded His Portfolio
Can Workplace Ketamine Retreats Improve Vibes in the Office?
Assault Allegations Plague a $1.4 Billion Home Eldercare Startup
©2023 Bloomberg L.P.