UPDATE two-Chipmaker Marvell Technologies beats income estimates on AI boom

(Adds Nvidia background in paragraph three, forecast for second-quarter in paragraph five)

May well 25 (Reuters) – Marvell Technologies Inc on Thursday forecast its artificial intelligence (AI) income would double for the year, immediately after the chipmaker surpassed Wall Street targets for 1st-quarter income.

Its shares rose 13.five% to $56.15 in extended trading, as Marvell became the second U.S. chipmaker in as a lot of days to hitch its wagon to the boom in AI demand.

Bigger peer Nvidia on Wednesday announced a second-quarter income target much more than 50% above industry estimates, with plans to enhance provide to meet surging demand for its AI chips.

“We are forecasting our AI income in fiscal 2024 to at least double from the prior year and continue to develop quickly in the coming years,” mentioned Marvell CEO Matt Murphy.

The California-primarily based firm also forecast second-quarter income of $1.33 billion, above analysts’ estimates of $1.31 billion, according to Refinitiv information.

Excluding products, it reported income of $1.32 billion for the quarter ended April 29, beating expectations of $1.30 billion.

(Reporting by Sourasis Bose in Bengaluru Editing by Devika Syamnath)