Marvell Technology Inc (NASDAQ:MRVL) stock surges 26.79% (As on May 26, 11:42:28 AM UTC-4, Source: Google Finance) after the company forecast its artificial intelligence (AI) revenue would double for the year, becoming the second U.S. chip company in as many days to bet on the breakthrough technology. Revenue by End Market- Data Center was $435.80 million versus $422.46 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -32% change. Revenue by End Market- Carrier Infrastructure was $289.90 million compared to the $289.82 million average estimate based on five analysts. The reported number represents a change of +15% year over year. Revenue by End Market- Automotive/Industrial was $89.30 million versus the five-analyst average estimate of $89.55 million. The reported number represents a year-over-year change of 0%. Revenue by End Market- Consumer was $142.10 million compared to the $161.73 million average estimate based on five analysts. The reported number represents a change of -20.4% year over year. Revenue by End Market- Enterprise Networking was $364.60 million versus the five-analyst average estimate of $336.69 million. The reported number represents a year-over-year change of +27.2%. Non-GAAP net income for the first quarter of fiscal 2024 was $264 million. Cash flow from operations for the first quarter was $208.4 million.

MRVL in the first quarter of FY 24 has reported the adjusted earnings per share of 31 cents, beating the analysts’ estimates for the adjusted earnings per share of 29 cents. The company had reported 8.7 percent decline in the adjusted revenue to $1.32 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.30 billion.

The company is forecasting the AI revenue in fiscal 2024 to at least double from the prior year and continue to grow rapidly in the coming years. The California-based firm also forecast second-quarter revenue of $1.33 billion, above analysts’ estimates of $1.31 billion, according to Refinitiv data. For the second quarter, the company expects Non-GAAP gross margin to be approximately 60.0% – 61.0%, Non-GAAP operating expenses are expected to be approximately $455 million and Non-GAAP diluted income per share is expected to be $0.32 +/- $0.05 per share. The company is expecting revenue growth to accelerate in the second half of this fiscal year, accompanied by gross and operating margin expansion.