MARVELL is drowning as Custom Custom Custom Custom Custom AI

Written by Rashika Singh

(Reuters) -Marvell technology screens decreased nearly 18 % on Friday, as the demand for the database of the chips maker decreased to noble expectations due to irregular sales of artificial intelligence chips designated to the cloud giants.

Investor expectations for chips are raised after the evaluation filmed in the sky due to the Wall Street choices, the artificial intelligence trade, but Market Belwether NafidiaThe latest profits cast doubt about the request from cloud service providers.

Matt Murphy, CEO of Marvell, said in the post -profit invitation on Thursday that the data center revenue in the third quarter will be flat successively, which worries investors and analysts about growth in the main part that reflects the demand for devices used in artificial intelligence data centers.

The network maker’s network revenues are increasingly driven through its work for cloud services services such as Amazon.com and Microsoft Those who develop internal capabilities to reduce their dependence on NVIDIA.

The recent media report said that Microsoft was delayed in the artificial intelligence chips segment in 2028 or later.

Some analysts said that the concerns were exaggerated.

William Kirwin, an Morningsar analyst, said the delay may benefit Marvell by increasing Microsoft’s dependence on her.

“In general, the most important discussion about Marvell’s shares today is the uncertainty in his ability to maintain its dedicated work in both AWS and Microsoft. We are more optimistic about this front.”

Murphy said that the “cost” was normal when adult cloud services providers build infrastructure, in reference to Marvell’s exposure to the development of unequal products and spending.

“Marvell’s size lacks size for greater peers and expected customers will follow a strategy to identify multi -resources, which can affect the margins,” said Summit Insights Kinngai Chan, who has a “comment” rating on stock.

Marvell is competing for his rival, his biggest competitor for network companies and networks for cloud services providers. Protecome has not reported the results of the quarter of July.

Marvell is scheduled to lose approximately $ 12 billion in the market value if the losses are steadfast. The price ratio to the profits is 24.24 months for a period of 12 months, compared to 39.03 of Broadcom, according to the data collected by LSEG.

But Marvell expects her designated business to be stronger in the fourth quarter, as Murphy said, which means a height later in the year with the increase in the orders of the designated chips again.

(Rachaica Singh, Archia Bajwa and Jasbit Singh in Bangaluru, was edited by Marighank Deniola, Krishna Chandra Elori and Alan Baruna)