Marvell Technology Inc., a leading chipmaker for data centres and cloud computing, announced on Thursday that it expects its revenue from artificial intelligence (AI) to at least double in fiscal year 2023, as it ramps up its production of chips that enable faster and smarter data processing.
Marvell’s AI Chips Power Breakthrough Applications
Marvell’s AI chips are designed to handle complex tasks such as natural language processing, computer vision, and deep learning, which are essential for emerging applications such as autonomous vehicles, smart cities, and healthcare. Marvell’s AI chips are based on its Octeon platform, which combines Arm-based processors with custom accelerators and memory controllers. Marvell claims that its AI chips can deliver up to 10 times the performance of competing solutions while consuming less power and space.
Marvell’s AI chips have been adopted by several leading customers, including Microsoft Corp., which uses them for its Azure cloud services and Bing search engine. Marvell also recently partnered with Nvidia Corp., another AI chip giant, to integrate its Octeon platform with Nvidia’s BlueField data processing units (DPUs), which are specialized chips that offload networking, security, and storage functions from the main processors. The collaboration aims to create a unified platform that can handle both AI and data centre workloads.
Marvell Beats Revenue Estimates and Raises Guidance
Marvell reported its first-quarter results on Thursday, beating analysts’ estimates for both revenue and earnings. The company posted revenue of $832 million, up 20% year-over-year and above the consensus estimate of $804 million. The company also reported adjusted earnings per share of $0.29, beating the consensus estimate of $0.27.
Marvell attributed its strong performance to the robust demand for its products across all its end markets, especially cloud and 5G. The company said that it expects the demand to continue in the second quarter and beyond, as it benefits from the secular trends of data growth and AI adoption.
Marvell raised its guidance for the second quarter, projecting revenue of $1.07 billion, well above the consensus estimate of $845 million. The company also expects adjusted earnings per share of $0.34, higher than the consensus estimate of $0.28.
Marvell’s shares soared 17.2% to $57.96 in after-hours trading on Thursday, following the upbeat results and outlook. The stock has gained 43% year-to-date, outperforming the broader semiconductor sector.