By Priyanka G

May 29 (Reuters) - Marvell Technology ( MRVL ) forecast

second-quarter revenue above Wall Street estimates on Thursday,

betting on strong demand for its custom chips powering

artificial intelligence workloads in data centers.

Demand for custom AI chips continues to fuel growth,

while networking chips and electro-optics have also seen robust

order momentum. These advancements help hyperscalers seeking to

scale their infrastructure to support AI workloads.

Marvell ( MRVL ) said in its post-earnings call that it expects

AI tailwinds to remain strong, driven by robust hyperscaler

spending, new sovereign data center projects, and the expansion

of emerging market players expanding the market, opening up

growth opportunities.

Revenue from Marvell's ( MRVL ) data center segment, which

accounts for 76% of the company's total revenue, stood at $1.44

billion in the first quarter.

The company's carrier and enterprise networking segments

have also gradually recovered following a period of inventory

correction.

"We believe the custom silicon business will be the

primary growth driver over the next 3-5 years, contributing

positively to operating profits despite lower gross margins,"

said Angelo Zino, analyst at CFRA Research.

Zino added that the upcoming custom silicon webinar on

June 17 could serve as a catalyst by potentially showcasing TAM

expansion opportunities and new customer wins in CY26.

However, the consumer end market remained weak for the

company, with revenue falling 29% sequentially to $63.1 million

due to seasonality in gaming demand. The industrial segment also

struggled, reporting a 12% sequential decline in revenue.

Shares of the company fell about 2% in extended trading.

The company expects second-quarter revenue to be $2 billion,

plus or minus 5% compared with analysts' average estimate of

$1.98 billion, according to data compiled by LSEG.

In May, Marvell ( MRVL ) said it was postponing its previously

scheduled investor day conference due to a "dynamic

macroeconomic environment."

It reported revenue of $1.9 billion for the quarter ended

May 3, compared to analysts' average estimate of $1.88 billion.