(Bloomberg) — Marvell Technology Inc. rose 16% during premarket trading in New York on Friday after the chipmaker said it expects artificial intelligence revenues to rise this year, benefiting from a spending boom that also saw Nvidia Corp. institution rally this week.
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Sales of AI-related products will at least double in the current fiscal year, Marvell said in a statement Thursday. Adjusted earnings for the first quarter also came in just above analyst estimates.
The stock ended Thursday’s session up 7.6% to $49.47 and has gained 33.6% over the year to date.
“AI has emerged as a key growth driver for Marvell, which we are enabling with our industry-leading network connectivity products and our emerging cloud-optimized silicon platform,” Chief Executive Officer Matt Murphy said in the statement. “While we are still in the early stages of our AI disaster, we forecast that our AI revenue will at least double in fiscal 2024 from the prior year and continue to grow rapidly for years to come.”
Chip investors are piling money into companies with AI growth prospects. A rosy forecast from Nvidia helped send the market value past $930 billion on Thursday and boosted shares of other semiconductor and artificial intelligence technology vendors.
Read more: Nvidia’s Blowout prediction sparks huge rally in All Things AI
Marvell said revenue this quarter will be about $1.33 billion, roughly in line with analyst forecasts.
(Updates with premarket trading in first paragraph)
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