June 5, 2023 5:23 pm

Might 25 (Reuters) – Marvell Technologies Inc (MRVL.O) on Thursday forecast its artificial intelligence (AI) income would double for the year, just after the chipmaker surpassed Wall Street targets for very first-quarter income.

Its shares rose 13.five% to $56.15 in extended trading, as Marvell became the second U.S. chipmaker in as quite a few days to hitch its wagon to the boom in AI demand.

Bigger peer Nvidia on Wednesday announced a second-quarter income target a lot more than 50% above market place estimates, with plans to increase provide to meet surging demand for its AI chips.

“We are forecasting our AI income in fiscal 2024 to at least double from the prior year and continue to develop swiftly in the coming years,” stated Marvell CEO Matt Murphy.

The California-primarily based firm also forecast second-quarter income of $1.33 billion, above analysts’ estimates of $1.31 billion, according to Refinitiv information.

Excluding products, it reported income of $1.32 billion for the quarter ended April 29, beating expectations of $1.30 billion.

Reporting by Sourasis Bose in Bengaluru Editing by Devika Syamnath

Our Requirements: The Thomson Reuters Trust Principles.

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