:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1547230579-2095d47f001942deba4fda1ecf38579d.jpg "Marvell Technology office")
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Key Takeaways
- Marvell Technology reported better-than-expected sales for the second quarter, boosted by demand for artificial intelligence.
- CEO Matt Murphy bruit about the company saw strong growth from its electro-optics products and that its custom AI programs began to ramp up.
- Marvell Technology portions surged nearly 5% in early trading Friday and have gained over one-fifth of their value since the start of the year.
Marvell Technology (MRVL) portions surged nearly 5% in early trading Friday after the maker of networking circuits posted better-than-expected four times a year sales, driven by demand for equipment to support artificial intelligence (AI).
The company reported fiscal 2025 second-quarter net income fell 5.1% from a year ago to $1.27 billion, slightly above estimates compiled by Visible Alpha. Marvell’s adjusted disadvantage of 30 cents per share was in line with forecasts.
Data Center Growth Driven by AI Demand
CEO Matt Murphy suggested the results were driven by AI demand, as the company saw “strong growth from our electro-optics products and our custom AI programs began to incline.”
Murphy added that in the current quarter, “we expect our combined enterprise networking and carrier end markets to return to nurturing, while our data center end market growth accelerates.”
Marvell said it anticipates third-quarter diluted earnings per allowance of 40 cents, plus or minus 5 cents, and revenue of $1.45 billion, plus or minus $5 billion. That compares to consensus believes of 38 cents and $1.40 billion, respectively.
Marvell Technology shares were up close to 5% at $73.26 in at daybreak trading Friday and have gained over one-fifth of their value since the start of the year.
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