(Reuters) -Marvell Technology forecast second-quarter revenue above Wall Street estimates on Thursday, betting on robust demand for custom chips powering artificial intelligence workloads in data centers.
Demand for custom AI chips continues to fuel growth, while high-performance networking chips and electro-optics have also seen robust order momentum. These advancements help hyperscalers manage the exponential increase in data traffic generated by AI applications.
Revenue from Marvell’s data center segment, which accounts for 76% of the company’s total revenue, stood at $1.44 billion in the first quarter.
The company expects second-quarter revenue to be $2 billion, plus or minus 5% compared with analysts’ average estimate of $1.98 billion, according to data compiled by LSEG.
(Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)
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