Marvell Technology Inc’s shares rose by 13.5% to $56.15 in extended trading on Thursday after the company forecast that its artificial intelligence revenue would double for the year. This came after the company’s first-quarter revenue surpassed estimates.
Excluding items, Marvell Technology reported first-quarter revenue of $132 billion for the three months ended April 29, thereby exceeding an expected $1.30 billion revenue for the period.
“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 CEO Matt Murphy announced after the company’s quarterly financials were released.
The California-based tech company forecasted a second-quarter revenue of $1.33 billion, thereby exceeding analysts’ estimates of a $1.31 billion revenue according to Refinitiv data.
Marvell’s announcement came after larger rival Nvidia confirmed its second-quarter revenue target that was over 50% more than market estimates.