** Shares of semiconductor companies rise on Wed after Marvell Technology disclosed that it was developing a new custom artificial intelligence $(AI)$-powered chip following strong demand from large U.S.-based cloud computing firms
** Philadelphia semiconductor index gains 2.5%, with some of the biggest gainers Broadcom up ~5%, Rambus
up 4.3%, Micron Technology up 4%, and Nvidia
up 3.9%
** Marvell CEO Matt Murphy said on Wed the company has in production a custom AI chip for one cloud computing company and a central processor based on technology from Arm Holdings
for another, both of which will generate revenue this year.
** MRVL, which helps customers such as Amazon.com design custom chips for their cloud computing units, also said it expects to generate $10 billion in AI chip sales
** Trading in MRVL was volatile after falling as much as 3.8% and rising as much as 3.5%, it was shares gave up earlier losses and were last up 0.2%
(Reporting by Chibuike Oguh in New York)
((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))
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