Marvell Technology Inc. shares reached a record high after the chipmaker reported better-than-expected results and an optimistic earnings forecast. The company cited strong demand for artificial intelligence computing as the main driver of its success.
In the third quarter, Marvell’s profit per share was 43 cents, surpassing analysts’ average estimate of 41 cents. The company now expects earnings of up to 64 cents in the current period, significantly higher than the 52-cent projection.
Marvell’s CEO, Matt Murphy, believes the chipmaker is well-positioned to benefit from the growing industry trend of AI spending. While Marvell hasn’t experienced a sales surge like Nvidia Corp., it offers essential components used by cloud-computing providers to develop advanced services.
The shares rose by as much as 23% to $117.74 in New York trading, marking the biggest intraday gain since May 2023. For the year, the shares have gained 59%. Marvell expects sales of around $1.8 billion in the fourth quarter, beating analysts’ estimates.
Source: https://finance.yahoo.com/news/marvell-rallies-demand-ai-computing-211823860.html