Marvell Technology is the latest firm to outline its opportunities in artificial intelligence, forecasting its AI revenue to double in fiscal 2024 and continue to increase rapidly in the next few years. CEO Matt Murphy said AI is now a “key growth driver” for the firm.
- Marvell sells chips and hardware products for the data center, 5G infrastructure, networking, and storage markets. Shares jumped as much as 20% in after-hours trading. Management cited the evolution in cloud computing as a benefit for Marvell’s product line.
- After beating profit estimates for the April quarter, with revenue of $1.32 billion, Marvell forecast a range of potential revenue for the current quarter with a midpoint of $1.33 billion. That is also above the current consensus estimate.
- A surprisingly strong revenue forecast from Nvidia on Wednesday ignited a rally in stocks of companies that stand to benefit from AI demand. Palantir Technologies shares rose 5% on Thursday and Arista Networks surged 10.6%.
What’s Next: Commerce Secretary Gina Raimondo and her Chinese counterpart met Thursday in Washington to help restart dialogue between the two nations as pressure builds on the Biden administration to respond to China’s blacklisting of American chip maker Micron Technology, The Wall Street Journal reported.
—Tae Kim and Liz Moyer from Barrons