(Adds Nvidia background in paragraph three, Q2 forecast in paragraph five)

May well 25 (Reuters) – Marvell Technologies Inc forecast on Thursday that its artificial intelligence (AI) income will double for the year, soon after the chipmaker beat Wall Street targets for the initially quarter.

Its shares rose 13.five% to $56.15 in extended trading, as Marvell became the second US chipmaker in as quite a few days to hitch its wagon to a boom in artificial intelligence demand.

Main Nvidia on Wednesday stated its second-quarter income target was far more than 50% above industry estimates, with plans to enhance provide to meet expanding demand for its AI chips.

“We anticipate that our AI income in fiscal 2024 will at least double year-more than-year and continue to develop quickly in the coming years,” stated Marvel CEO Matt Murphy.

The California-primarily based organization also forecast second-quarter income of $1.33 billion, topping analysts’ estimates of $1.31 billion, according to Refinitiv information.

Excluding products, it reported income 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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