Networking chips designer Marvell Technology has projected first-quarter revenue of US$1.88 billion, slightly above Wall Street estimates of US$1.87 billion, according to LSEG data.

Despite this alignment with expectations, the company’s shares fell by 15% in after-hours trading on Mar.5, due to investor concerns over expected growth in AI segments.

In the fourth quarter, Marvell reported a 78% year-on-year increase in data center revenues, reaching US$1.37 billion. This growth was driven by rising demand for custom AI chips designed for optimizing AI workloads.

In December 2024, Marvell signed a five-year chip agreement with Amazon, which includes custom AI chips. This indicates its expanding presence in the AI sector.