Technology shares surged after it posted solid earnings results and gave guidance slightly above Wall Street expectations.
The semiconductor firm reported adjusted earnings per share of 31 cents for the April quarter, compared with the consensus estimate of 29 cents among Wall Street analysts tracked by FactSet. Revenue came in at $1.32 billion, which was above analysts’ expectations of $1.3 billion.
Management’s financial outlook was solid, as well.
(ticker: MRVL) forecast a range of potential revenue for the current quarter with a midpoint of $1.33 billion, compared with the consensus view that revenue will be $1.31 billion.
“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,” Marvell CEO Matt Murphy said in the release. “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.”
Marvell sells a portfolio of chips and hardware products for the data center, 5G infrastructure, networking, and storage markets.
Marvell stock soared as much as 20% in after hours trading Thursday.
On the conference call, the company’s managers said the cloud computing industry was undergoing a transformation away from traditional central processing units (CPUs) servers to more complex AI cluster systems with graphics processing units (GPUs). The new AI-oriented systems require higher bandwidth data connections and low latency links, which should benefit Marvell.
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