Marvell Technology expects strong AI chip demand

Hey, so guess what? Marvell Technology, those folks known for their chips, are feeling pretty good about the next few months. They're expecting to make more money than the experts thought they would in the second quarter.

Why? Well, it's all about those fancy custom chips they make that help power all that artificial intelligence stuff in big data centers. People need more and more of these to handle all the AI work, and Marvell is seeing a ton of demand. It's not just the AI chips, either. Their networking chips and some other cool tech are getting a lot of orders too. This helps those huge companies that need to grow their systems to keep up with AI.

Marvell even said after they shared their latest numbers that they think this whole AI thing will keep boosting their business. They're seeing big companies spending a lot, plus new projects popping up, and even new players entering the market, which means more chances for them to grow. Their data center business, which is where most of their money comes from, made a cool $1.44 billion in the first quarter.

Also, their businesses that deal with phone companies and businesses are slowly getting better after a bit of a rough patch. One analyst guy, Angelo Zino, thinks these custom chips will be the main reason Marvell grows over the next 3 to 5 years. He says they'll even help make more money even if they aren't the most profitable chips per item. He also mentioned this online event they have coming up in June about custom chips. Maybe they'll show off some cool new things there and announce some new customers for 2026. Who knows?

Now, it wasn't all rainbows. The part of their business that sells to regular folks, like for gaming, wasn't doing so hot. Sales went down a bit because gaming demand changes with the seasons, I guess. Their industrial business also saw a dip in sales. Because of all this, their stock price went down a little after the market closed.

They're guessing their second-quarter sales will be around $2 billion, give or take 5 percent. This is a little higher than what analysts were expecting, which was about $1.98 billion. Back in May, they actually put off a meeting they had planned for investors because they said things were a bit uncertain in the economy. For the quarter that ended in May, they brought in $1.9 billion, which was just a tiny bit more than the experts thought.