According to Zhituo Finance APP, Marvell Technology (MRVL.US) recently released its third-quarter financial report, which exceeded market expectations with an optimistic earnings forecast. The report shows that the company's third-quarter revenue was 1.52 billion dollars, a year-on-year increase of 6.84%, higher than the analyst consensus estimate of 1.46 billion dollars; the earnings per share was 0.43 dollars, with adjusted earnings per share also at 0.43 dollars, which was higher than the analyst expectation of 0.41 dollars. Among them, the datacenter division performed particularly well, with revenue increasing 98% year-on-year to 1.1 billion dollars.

In terms of business, Marvell Technology's enterprise networking and carrier infrastructure segments saw a decline in revenue, falling by 44% and 73% respectively, to 0.1509 billion dollars and 84.7 million dollars. However, the strong performance of the datacenter segment became the main driver of the company's revenue growth.

Looking ahead, Marvell Technology expects its fourth-quarter revenue to reach 1.8 billion dollars (+/-5%), above the market expectation of 1.65 billion dollars; the earnings per share is forecasted to be 0.59 dollars, higher than the analyst expectation of 0.52 dollars. Additionally, the company predicts an adjusted gross margin of 60% for the fourth quarter, slightly lower than the market expectation of 61%.

In the field of ai, Marvell Technology has also made significant progress. Although the ai processor market is primarily dominated by Nvidia (NVDA.US), Marvell Technology has successfully established long-term partnerships with technology giants such as Amazon (AMZN.US) by providing customized ai products. CEO Matt Murphy stated that Marvell Technology will benefit from the surge in ai spending across the industry and expects this year's ai revenue to double to over 1.5 billion dollars, reaching 2.5 billion dollars in the next fiscal year. Jefferies analysts estimate that by 2025, Marvell Technology's revenue from customized ai chips could reach 2.5 billion to 3 billion dollars.

It is worth mentioning that despite the significant achievements of Marvell Technology in the ai field, its customized chips typically have lower profit margins than off-the-shelf products. Furthermore, due to over-purchasing during the pandemic leading to supply excess, customers in other terminal markets have been struggling to reduce chip inventories. However, with the rise in ai-related demand, Marvell Technology will still continue to benefit from its customized ai chip business.

Additionally, it has been reported that Intel has approached Marvell Technology CEO Matt Murphy in search of a new leader. Murphy stated in a conference call that he is committed to the current company and focuses on the development of Marvell Technology. Despite facing Intel's poaching attempts, Murphy emphasized that he is 100% focused on Marvell Technology.

As Wall Street invests billions of dollars into ai-related stocks and places a hefty bet on the future of genAI technology, Marvell Technology's stock price has increased nearly 60% this year. Its larger competitor Broadcom (AVGO.US) has also risen about 50% this year. As of the time of writing, Marvell Technology's stock price has risen nearly 11% in after-hours trading to 106.20 dollars.

As companies compete to develop the most complex models, the demand for advanced chips capable of supporting the complex processing needs of genAI has surged. Marvell Technology, as a leader in the industry, has promising prospects for future development.