Marvell Technology Inc (NASDAQ:MRVL) stock rose 7.23% (As on August 30, 11:27:35 AM UTC-4, Source: Google Finance) after the company reported second-quarter revenue that topped Wall Street estimates as the chipmaker’s data center business nearly doubled revenue amid strong artificial-intelligence-led demand.

Further, Strong bookings continue for the market-leading 800-gig PAM products and 400 ZR data center interconnect, or DCI products, and the company is looking forward to starting shipments of the next-generation 200-gig-per-lane 1.6-terabit DSPs in the third quarter. As a result, the company expects the electro-optics revenue will continue to grow every quarter this fiscal year on a sequential basis. The company is also looking forward to addressing a number of new opportunities within the data center. The company has begun initial shipments of our 100-gig-per-lane 800-gig DSPs for active electrical cables, or AECs, and the company is anticipating the production ramp to accelerate in the second half. In addition, the company has recently started sampling the industry’s first 200-gig-per-lane 1.6-terabit AEC DSPs to address upcoming higher-speed short-reach copper-interconnect applications. The company is making significant progress in bringing Compute Express Link, or CXL, technology to the market, having recently introduced two new families of CXL devices to address memory bandwidth and memory capacity challenges in next-generation servers. In the cloud security business, the company is pleased that Microsoft will begin integrating Marvell’s FIPS 140 Level 3-compliant LiquidSecurity hardware modules in their Azure Key Vault offerings.

MRVL in the second quarter of FY 25 has reported the adjusted earnings per share of 30 cents, beating the analysts’ estimates for the adjusted earnings per share of 29 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 5 percent to $1.27 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue by 1.79%. Marvell’s second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. Non-GAAP gross margin was 61.9%. Cash flow from operations in the second quarter was $306 million.

Looking ahead to Q3, EPS was guided in a range of $0.35 to $0.45 on revenue of $1.45B, give or take 3%. That compared with estimates for EPS of $0.38 cents on revenue of $1.41 billion. For third quarter of fiscal 2025, Non-GAAP gross margin is expected to be approximately 61% and Non-GAAP operating expenses are expected to be approximately $465 million