Shares of Marvell Technology (MRVL) are up 13% after the chipmaker reported third-quarter financial results that beat Wall Street forecasts on the top and bottom lines.
The company reported earnings per share (EPS) for the July through September quarter of $0.43 U.S. That surpassed the consensus estimate of $0.41 U.S. among analysts.
Revenue in Q3 totaled $1.52 billion U.S., which was ahead of the $1.46 billion U.S. expected on Wall Street. Sales were up 19% from a year earlier.
Management at Marvell Technology attributed the strong results to demand for the microchips that power artificial intelligence (A.I.) models and applications.
Specifically, management said most of the Q3 growth came from sales of new custom A.I. acceleration chips to e-commerce giant Amazon (AMZN) and other owners of data centres that run large A.I. models.
Looking ahead, Marvell forecast earnings of $0.59 U.S. a share, plus or minus five cents. That was ahead of Wall Street forecasts that called for Q4 earnings of $0.52 U.S.
The company added that it expects Q4 revenue of $1.80 billion U.S., plus or minus 5%, which is ahead of consensus estimates of $1.65 billion U.S.
Before today (Dec. 4), the stock of Marvell had risen 65% in 2024 to trade at $95.91 U.S. per share.
