(Reuters) – Chipmaker Marvell Technology forecast first-quarter revenue below market expectations on Thursday, hurt by weak demand for its custom chips used in artificial intelligence applications.
The company’s shares fell 12% in extended trade.
Marvell also announced a $3 billion stock buyback authorization.
The company expects first-quarter net revenue to be $1.15 billion, plus or minus 5%, compared with estimates of $1.37 billion, according to LSEG data.
High interest rates and a tough macro environment have prompted clients to cut spending on Marvell’s chips and networking hardware.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)
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