Chip maker Marvell technology (MorleyLate Thursday it beat Wall Street’s fiscal first-quarter targets and expectations. But MRVL stock jumped in extended trading after the company named artificial intelligence a major growth engine.
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The Santa Clara, California-headquartered company earned 31 adjusted cents per share on sales of $1.32 billion for the period ended April 29. Analysts polled by FactSet had expected earnings of 29 cents a share on sales of $1.3 billion. On an annual basis, Marvell’s profits are down 40% while sales are down 9%.
For the current quarter, Marvell expects adjusted earnings of 32 cents per share on sales of $1.33 billion. This depends on the middle of the outlook. Wall Street called for a profit of 30 cents per share on sales of $1.31 billion in the second quarter of the fiscal year.
“We expect revenue growth to accelerate in the second half of this fiscal year, accompanied by an expansion of gross operating profit margin,” said CEO Matt Murphy. New release.
MRVL Stock Jumps On Artificial Intelligence Expectations
Murphy said Marvel also expects to benefit from increased investments in artificial intelligence.
“Artificial intelligence has emerged as a key growth driver for Marvell, which we are enabling through our groundbreaking networking products and emerging cloud-optimized silicon platform,” he said.
“While we are still in the early stages of our path to artificial intelligence, we expect AI revenues in fiscal year 2024 to at least double from the previous year and continue to grow rapidly in the years to come,” added Murphy.
In today’s stock market after-hours trade, MRVL stock jumped 14.1% to 56.43. During the regular session on Thursday, MRVL stock rose by 7.6%, closing at 49.47.
MRVL stock is approaching a buy point at 49.58 cup bottom, according to IBD MarketSmith charts.
Marvell makes networking and data storage chips used in cloud computing, automotive, telecom and other applications.
Marvell stock ranks 10th out of 37 stocks in IBD’s fabless semiconductor industry group, according to IBD stock check. MRVL stock has a composite IBD rating of 83 out of 99.
Follow Patrick Seitz on Twitter at @employee For more stories on consumer technologies, software and semiconductor stocks.
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