Marvell Technology delivered a strong signal for the AI sector Wednesday, forecasting second-quarter revenue above Wall Street estimates. The networking and custom silicon chip maker credited robust demand for its AI data center technology.
Shares jumped over 6% in extended trading. The stock has more than doubled this year.
Marvell expects revenue of $2.70 billion for the second quarter, plus or minus 5%, beating the analyst consensus of $2.60 billion. Adjusted profit is forecast at 93 cents per share, above estimates of 90 cents.
The company competes with Broadcom in designing custom chips for cloud-computing giants. Marvell’s technology is crucial for high-speed connectivity in data centers.
For the first quarter, revenue rose 28% to $2.42 billion, with adjusted profit of 80 cents per share, both topping estimates.
U.S. tech giants are projected to invest over $700 billion in AI infrastructure this year, up sharply from $400 billion in 2025.