Semiconductor stocks gain after Marvell discloses new AI chip

Rambus

11/04/2024 20:49

** Shares of semiconductor companies rise on Wed after Marvell
Technology  MRVL.O  disclosed that it was developing a new
custom artificial intelligence (AI)-powered chip following
strong demand from large U.S.-based cloud computing firms 
    ** Philadelphia semiconductor index  .SOX  gains 2.5%, with
some of the biggest gainers Broadcom  AVGO.O  up ~5%, Rambus
 RMBS.O  up 4.3%, Micron Technology  MU.O  up 4%, and Nvidia
 NVDA.O  up 3.9%
    ** Marvell CEO Matt Murphy said on Wed the company has in
production a custom AI chip for one cloud computing company and
a central processor based on technology from Arm Holdings
 O9Ty.F  for another, both of which will generate revenue this
year.
    ** MRVL, which helps customers such as Amazon.com  AMZN.O 
design custom chips for their cloud computing units, also said
it expects to generate $10 billion in AI chip sales
    ** Trading in MRVL was volatile after falling as much as
3.8% and rising as much as 3.5%, it was shares gave up earlier
losses and were last up 0.2% 

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))