- Shares of Marvell Technology jumped 29% on Friday, nearing its largest single-day gain.
- The chipmaker credited AI for its upbeat second-quarter outlook.
- The big upside move follows Nvidia’s huge rally on Thursday, as the AI boom helped fuel a huge first quarter.
Marvell Technology stock jumped as much as 29% on Friday after it released glowing second-quarter guidance, citing artificial intelligence technology as a “key growth driver” for the U.S. chipmaker.
Shares of the company were trading at $64.54 as of 2:20 p.m. ET, on track for their biggest one-day gain on record.
In a call with analysts on Thursday, chief executive Matthew Murphy said Marvell was looking at the “tremendous” potential that AI could hold for the company.
“AI has become a key growth driver for Marvell, which we enable through our leading network connectivity products and our emerging cloud-optimized silicon platform,” Murphy said in a statement.
He added, “While we are still in the early stages of our AI ramp, we expect our AI revenue in fiscal year 2024 to at least double from the prior year and continue to grow. grow rapidly in the years to come.”
Marvell’s jump follows Nvidia’s massive rally on Thursday, which added nearly $200 billion to its market value.
“The computing industry is going through two simultaneous transitions – accelerated computing and generative AI,” said Nvidia CEO Jensen Huang.
Huang added, “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as enterprises strive to apply generative AI to every product, service and business process. .”