Investing.com – Marvell Technology reported Thursday better-than-expected first-quarter results and encouraging revenue guidance for the current quarter as artificial intelligence emerges as a key growth for the chipmaker.
Marvell Technology (NASDAQ:) was up 14% in afterhours trading following the report.
The chipmaker Q1 adjusted EPS of 31 cents on revenue of $1.58 billion, compared with estimates for 29 cents on revenue of $1.30B.
Data center, which services cloud and artificial intelligence customers and makes up the bulk of growth of its five end markets, saw revenue fall to $435.8 million from $640.5M a year earlier.
Looking ahead, the company forecast fiscal second-quarter adjusted EPS to be 32 cents per share, plus or minus 5 cents, while net revenue is expected to be $1.33B, plus or minus 5%. That compared with Wall Street estimates for EPS of $1.31 and revenue of $1.31B.
The company sees annual revenue related to artificial intelligence to at least double in fiscal 2024.
“While we are still in the early stages of our AI ramp, 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,” the company said.
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