Marvell Tech Bets Big on AI Chip Boom

So, get this: Marvell Tech, the folks behind those fancy chips, think they're gonna have a pretty good next few months. They actually predict their sales will be better than what folks on Wall Street were expecting. Why the good vibes? Well, it sounds like everyone wants their custom chips, especially for all that AI stuff happening in big data centers. Yeah, like the kind that power ChatGPT and all those cool things.

Demand for these special AI chips is really driving things, and even their regular networking chips and some other tech are getting a lot of orders. This is helping those huge companies that run massive data centers beef up their systems so they can handle more AI work. Marvell even said on a call after their earnings report that they expect this whole AI excitement to stick around. They see big companies spending lots, some new data center projects popping up for, like, governments, and even new players coming into the market. Lots of chances to grow, right?

Their data center part of the business is huge, making up most of their money. They pulled in like $1.44 billion from that in the first three months of the year. Their other businesses, like carrier and enterprise networking, are also starting to pick up after things were kinda slow for a bit. One analyst guy named Angelo Zino thinks these custom chips are gonna be the main reason Marvell grows over the next few years. He says they'll help with profits, even if they don't make as much per chip.

He also mentioned that Marvell is doing a webinar on June 17th about these custom chips, and that could be a big deal. Maybe they'll show off new opportunities or even announce some new customers for next year. That would be pretty cool, huh?

Now, not everything is super sunny. The consumer market wasn't great for them, with sales dropping a bunch because people weren't buying as many gaming-related things. The industrial side also took a hit. Because of all this, their stock actually went down a little bit after hours. Bummer.

For the next three months, they're guessing sales will be around $2 billion, give or take a little. That's slightly higher than what the experts thought. Oh, and back in May, Marvell actually pushed back an event they had planned for investors. They said it was because the economy was being all shaky. Before that, they reported sales of $1.9 billion for the quarter that ended in early May, which was also a bit better than what the analysts were expecting.