Shares of Marvell Technology (NASDAQ: MRVL) were surging today after the semiconductor maker posted better-than-expected results in its third-quarter earnings report, driven in part by strong AI demand and guidance.

As of 1:03 p.m. ET, the stock was up 23.6% on the news.

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Marvell tops estimates

Year-over-year revenue growth remained modest at Marvell as it continues to work through an earlier slowdown in the chip sector, but the company still topped estimates.

Revenue in the quarter was up 7% from a year ago, or 19% from the previous quarter, to $1.52 billion, which was ahead of the expectations at $1.46 billion and its own guidance.

On the bottom line, adjusted earnings per share rose from $0.30 to $0.43, which topped the consensus at $0.41.

The fabless chip company, which is known for custom chips, networking chips, and storage solutions, said that momentum is picking up. "We are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell," CEO Matt Murphy said. He also noted that its better-than-expected growth is being driven by "custom AI silicon programs."

Murphy was also reportedly on the short list of candidates being considered for the CEO job at Intel, though he said he was committed to Marvell.

What's next for Marvell

The company's guidance seemed to be what really drove the bounce in the stock.

For the fourth quarter, management called for revenue of $1.71 billion-$1.89 billion, up 26% at the midpoint, and adjusted earnings per share of $0.54-$0.64, which compared to estimates at $0.52.

The accelerating revenue and increasing AI demand bode well for 2025, as Marvell looks set to capitalize on the AI boom.

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