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Marvell Technology Q1 results: Revenue boosted by AI demand

May 30, 2024 4:32 PM

Investing.com - Marvell Technology Inc (NASDAQ: MRVL) slipped 1.7% in after-hours trade on Thursday after the company announced its results for the first quarter of the fiscal year 2025.


The company reported earnings per share (EPS) at 24 cents, while revenues came in at $1.16 billion, marking a 12% year-on-year decline.


However, revenue figures still remained $11.0 million above the mid-point of the company's guidance provided earlier in March 2024.


Marvell's Chairman and CEO Matt Murphy noted that the revenue for the first quarter was driven by higher-than-expected demand from the AI sector. The company's data center revenue saw growth of 87% year over year, thanks to the initiation of their custom AI programs and their substantial base of electro-optics revenue.


Murphy also said, "We see a favorable setup for the second half of this fiscal year, driven by continued growth in data center and the beginning of a recovery in enterprise networking and carrier infrastructure."


The company's cash flow from operations for the first quarter amounted to $324.5 million.

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