Might 25 (Reuters) – Marvell Expertise Inc (MRVL.O) on Thursday forecast its synthetic intelligence (AI) income would double for the 12 months, after the chipmaker surpassed Wall Avenue targets for first-quarter income.

Its shares rose 13.5% to $56.15 in prolonged buying and selling, as Marvell grew to become the second U.S. chipmaker in as many days to hitch its wagon to the increase in AI demand.

Bigger peer Nvidia on Wednesday introduced a second-quarter income goal greater than 50% above market estimates, with plans to spice up provide to satisfy surging demand for its AI chips.

“We’re forecasting our AI income in fiscal 2024 to at the least double from the prior 12 months and proceed to develop quickly within the coming years,” stated Marvell CEO Matt Murphy.

The California-based agency additionally forecast second-quarter income of $1.33 billion, above analysts’ estimates of $1.31 billion, in line with Refinitiv information.

Excluding gadgets, it reported income of $1.32 billion for the quarter ended April 29, beating expectations of $1.30 billion.

Reporting by Sourasis Bose in Bengaluru; Enhancing by Devika Syamnath

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