Marvell shares climb 12% on bullish AI chip forecast
Marvell shares rose 12% Friday after forecasting $15 billion in 2028 revenue. The outlook reflects strong demand for custom AI chips and networking hardware.
Shares of Marvell Technology, Inc. surged nearly 12% before the opening bell on Friday as investors reacted to an upgraded long-term forecast driven by the rapid expansion of artificial intelligence infrastructure. The company is benefiting from significant demand for its custom AI chips and high-speed interconnect technologies, which are essential for modern data centers.
The broader industry is experiencing a surge in AI-related capital expenditure. Broadcom Inc., a key provider of networking silicon and custom accelerators, recently projected that its AI-related sales would top $100 billion next year. This outlook suggests that demand is broadening beyond industry leaders like Nvidia to include extensive build-outs by major cloud service providers.
