Shares of the chipmaker Marvell Technology (NASDAQ: MRVL) have been on a rollercoaster ride over the past few weeks. Since the start of this month, the stock gained more than 50%. Marvell is mainly known as the leading supplier of chips for hard disk drives (HDD) used in PCs. The company also develops integrated circuits and related technologies for various applications, including storage, networking, and connectivity solutions.

The ongoing bullish rally is fueled by several factors including Marvell’s robust earnings report, Nvidia’s huge rally and booming demand for artificial intelligence. Marvell delivered better-than-expected financial results for the first quarter on Thursday. Revenue and earnings came in above consensus estimates driven by solid demand for the chips that power AI technology. The company also expects its revenue from AI-related endeavours to grow steadily over time.

• Earnings per share: $0.31 vs. $0.29 expected

• Revenue: $1.32 billion vs. $1.30 billion expected

“AI has emerged as a key growth driver for Marvell, which we are enabling with our leading network connectivity products and emerging cloud-optimized silicon platform,” he said. “While we are still in the early stages of our AI ramp, we are forecasting our AI revenue in fiscal 2024 to at least double from the prior year and continue to grow rapidly in the coming years.” – Marvell CEO, Matt Murphy said.

Near its Q1 2023 reports, Marvell's stock price was trading at nearly $50, which grew to its Friday closing price of $65. This growth is almost 32% after the release of the company’s first-quarter report, sending its market capitalization past $56 billion. The stock surged another 4% in pre-market trading on Tuesday.

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