Marvell Technologies (MRVL) is the most recent tech firm to say it is benefitting from the boom in artificial intelligence (AI), and shares skyrocketed on Friday immediately after the enterprise released its initially-quarter earnings.

Marvell, which manufactures networking chips utilized in information centers, said in its earnings report that revenue will “accelerate” in the second half of the year mainly because of demand for its AI merchandise.

“AI has emerged as a crucial development driver for Marvell,” CEO Matt Murphy mentioned. He added that whilst Marvell is nevertheless in the early stages of its ramp-up in AI production, “we are forecasting AI income in fiscal 2024 to at least double from the prior year and continue to develop swiftly in the coming years.”

Marvell expects AI sales to be about $400 million this year, and $800 million in 2024. Yesterday, Nvidia (NVDA) shares soared immediately after the semiconductor maker also noted that sales of its AI merchandise have been taking off. 

Q1 Final results Beat Estimates

In its fiscal initially quarter, Marvell posted earnings per share (EPS) of $.31, exceeding analysts’ forecasts. Income fell eight.7% to $1.32 billion, but also beat estimates. Following the report, analysts at Deutsche Bank and KeyBanc raised their value targets for the stock.

Marvell shares rose extra than 30% nowadays to their highest level in extra than a year. They are up 34% year-to-date, extra than double a 16% achieve for the broader customer discretionary sector more than the very same period.

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