Marvell Technology shares soar as company names AI a 'key growth driver'

Yahoo Finance Live discusses a rise in shares of Marvell Technology as the company cites AI as a 'key growth driver'.

Video transcript

[AUDIO LOGO]

JULIE HYMAN: Welcome back. We're a few minutes from the opening bell. Let's talk about some movers. Marvell technology soaring this Friday morning up some 19% after posting solid earnings after hours yesterday. The real news driving the stock higher is the buzz word of the season AI. Marvell CEO Matt Murphy saying in the company's earnings release that, quote, "AI has emerged as a key growth driver for Marvell." And not only that, the company says that revenue this year, in this current fiscal year from AI is going to double. Like, this is the same kind of magnitude of surprisingness that we--

DIANE KING HALL: Talked about with NVIDIA. Exactly. And we, you know, talked about the analyst we spoke to yesterday who said this would be on his list. And look at it, you know, outperforming in general. So certainly reaping the rewards of that, both that investment in AI and the future forecasts related to AI developments. So we're certainly continuing to see just that strength in the tech sector as a result of this.

JULIE HYMAN: Yeah. And a lot of the analysts' commentary is positive about this and saying that they're seeing this acceleration of demand for AI here. Harsh Kumar, a friend of the show from Piper Sandler, saying that when it comes to Marvell, it sees AI applications as the biggest driver for it. And the overall opportunity has expanded to, quote, "encompass over half of the available revenues for overall programs." So--

DIANE KING HALL: This is this generation's dot com, but hopefully not the bubble.

JULIE HYMAN: Yeah.