May 25 (Reuters) – Marvell Technology Inc ( MRVL.O ) on Thursday forecast its artificial intelligence (AI) revenue will double for the year, after the chipmaker beat Wall Street targets for the first quarter.

Its shares rose 13.5% to $56.15 in extended trading, as Marvell became the second US chipmaker in as many days to hitch its wagon to a boom in artificial intelligence demand.

Major Nvidia on Wednesday said its second-quarter revenue target was more than 50% above market estimates, with plans to increase supply to meet growing demand for its AI chips.

“We anticipate that our AI revenue in fiscal 2024 will at least double year-over-year and continue to grow rapidly in the coming years,” said Marvel CEO Matt Murphy.

The California-based company also forecast second-quarter revenue of $1.33 billion, topping analysts’ estimates of $1.31 billion, according to Refinitiv data.

Excluding items, it reported revenue of $1.32 billion for the quarter ended April 29, beating expectations of $1.30 billion.

Reporting by Sourasis Bose in Bengaluru; Editing by Devika Siamnath

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