Marvell Technologies (MRVL) is the most current tech firm to say it is benefitting from the boom in artificial intelligence (AI), and shares skyrocketed on Friday following the firm released its initial-quarter earnings.

Marvell, which manufactures networking chips employed in information centers, said in its earnings report that revenue will “accelerate” in the second half of the year for the reason that of demand for its AI solutions.

“AI has emerged as a essential development driver for Marvell,” CEO Matt Murphy stated. He added that whilst Marvell is nonetheless in the early stages of its ramp-up in AI production, “we are forecasting AI income in fiscal 2024 to at least double from the prior year and continue to develop quickly in the coming years.”

Marvell expects AI sales to be about $400 million this year, and $800 million in 2024. Yesterday, Nvidia (NVDA) shares soared following the semiconductor maker also noted that sales of its AI solutions had been taking off. 

Q1 Outcomes Beat Estimates

In its fiscal initial quarter, Marvell posted earnings per share (EPS) of $.31, exceeding analysts’ forecasts. Income fell eight.7% to $1.32 billion, but also beat estimates. Following the report, analysts at Deutsche Bank and KeyBanc raised their price tag targets for the stock.

Marvell shares rose much more than 30% currently to their highest level in much more than a year. They are up 34% year-to-date, much more than double a 16% acquire for the broader customer discretionary sector more than the very same period.

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