Artificial intelligence frenzy is fueling another tech stock market rally.
Technology is the latest chipmaker to join
booming as he predicts that AI will be a long-term growth engine.
Marvell (ticker: MRVL) stock rose 16% in premarket trading on Friday to $57.37. While its first-quarter earnings narrowly beat analysts’ expectations on Thursday, the real excitement was about the semiconductor company’s AI outlook.
“Growing demand for generative AI is driving network connectivity products and MRVL’s cloud-optimized silicon platform,” KeyBanc analysts wrote in a research note Friday.
KeyBanc raised its price target on Marvell to $70 from $60 and maintained an overweight rating on the stock.
For those skeptical of an AI bubble, Marvell can at least say it’s already making money from technology. The company, which makes networking chips used in data centers, said it generated $200 million in AI revenue in its last fiscal year, out of total revenue of $5.92 billion. .
Marvell expects AI-related revenue to double to around $400 million in its current fiscal year and reach $800 million in its next fiscal year.
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