Marvell Technology (MRVL) shares climbed Monday after the company said its artificial intelligence (AI) accelerator chips (XPUs) are now better able to increase the performance of AI servers.
The company said its co-packaged optics technology boosts server performance by increasing XPU density from tens of chips within one server rack to hundreds across multiple racks. The integrated technology is now available for Marvell's clients, namely cloud hyperscalers, to develop custom XPU designs.
The news comes after Marvell posted a current-quarter revenue forecast last month that significantly exceeded Wall Street expectations. On the company’s fiscal third-quarter earnings call, Chief Executive Officer (CEO) Matt Murphy said that Marvell was on track to exceed its previous expectation that AI network and custom processor chip sales would reach $2.5 billion by fiscal 2026.
Shares of Marvell rose nearly 2% intraday Monday to $120.22, and have doubled over the past year.
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