(AOF) – Marvell Technology presented a performance slightly above expectations. In the second quarter, ending July, of fiscal 2024, the chipmaker posted a net loss of $207.5 million, or 24 cents per share, compared with a loss of $88.2 million, or 13 cents per share. action a year earlier. Excluding exceptional items, earnings per share stood at 33 cents, against a consensus of 32 cents. Revenue fell 12% to $1.34 billion, beating market expectations of $1.33 billion.
“Marvell delivered revenue in the second quarter of fiscal 2024 above the midpoint of guidance, and we expect sequential revenue growth to accelerate in the third quarter. cloud infrastructure,” said Matt Murphy, president and CEO of Marvell. “Demand for AI applications continues to strengthen, pushing our overall AI revenue outlook for the current fiscal year even higher than previously reported.”
The turnover linked to artificial intelligence would represent more than 500 million dollars over the financial year against a previous estimate of more than 400 million dollars.
For the current quarter, the group expects earnings per share, excluding exceptional items, of between 35 and 45 cents, and an average turnover of 1.4 billion. Analysts are targeting EPS of 40 cents and revenue of 1.39 billion.
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Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.
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Another historic decline in computer sales
After having already suffered a sharp setback last year, the market is faced with demand that remains weak. Supply is suffering from excess inventory, which is impacting prices. According to IDC, PC sales fell another 29% in the first quarter, to less than 57 million units. This is much less than the 59.2 million devices sold over the same period in 2019, before the Covid. Demand is down for individuals and businesses, which have equipped themselves with the boom in teleworking. The continued rise in interest rates in the United States and Europe, and its impact on inflation, is also penalizing. Among the market leaders, Lenovo, Dell and Asus posted volume declines of more than 30%. HP recorded sales down 24%. Apple faced the biggest drop, with sales plummeting more than 40% year-on-year. The Californian group could suffer from its rather high-end positioning.