:max_bytes(150000):strip_icc()/GettyImages-1547230579-2095d47f001942deba4fda1ecf38579d.jpg?w=1024&resize=1024,1024&ssl=1 "Marvell Technology Stock Surges on Better-Than-Expected Sales, Boosted by AI Demand")
Key Takeaways
- Marvell Technology reported better-than-expected sales for the second quarter, boosted by demand for artificial intelligence.
- CEO Matt Murphy said the company saw strong growth from its electro-optics products and that its custom AI programs began to ramp up.
- Marvell Technology shares surged nearly 5% in early trading Friday and have gained over one-fifth of their value since the start of the year.
Marvell Technology (MRVL) shares surged nearly 5% in early trading Friday after the maker of networking circuits posted better-than-expected quarterly sales, driven by demand for equipment to support artificial intelligence (AI).
The company reported fiscal 2025 second-quarter revenue fell 5.1% from a year ago to $1.27 billion, slightly above estimates compiled by Visible Alpha. Marvell’s adjusted loss of 30 cents per share was in line with forecasts.
Data Center Growth Driven by AI Demand
CEO Matt Murphy said the results were driven by AI demand, as the company saw “strong growth from our electro-optics products and our custom AI programs began to ramp.”
Murphy added that in the current quarter, “we expect our combined enterprise networking and carrier end markets to return to growth, while our data center end market growth accelerates.”
Marvell said it anticipates third-quarter diluted earnings per share of 40 cents, plus or minus 5 cents, and revenue of $1.45 billion, plus or minus $5 billion. That compares to consensus estimates of 38 cents and $1.40 billion, respectively.
Marvell Technology shares were up close to 5% at $73.26 in early trading Friday and have gained over one-fifth of their value since the start of the year.
TradingView
Source link