Marvell Technology shares rose on Friday after the company reported fourth-quarter results that beat Wall Street expectations. Both its custom chip and data center networking businesses are gaining momentum.

The company posted adjusted earnings of 80 cents per share on $2.22 billion in revenue, slightly above analyst forecasts of 79 cents per share and $2.21 billion in revenue. Data center revenue reached $1.65 billion, beating the $1.63 billion consensus and rising 21% year over year.

Marvell’s application-specific integrated circuit division has long attracted investors, but networking infrastructure is now also driving growth. The company expects interconnect revenue to grow by more than 50% in fiscal 2027, supported by its recent purchases of Celestial AI for $3.25 billion and XConn for $540 million.

Marvell’s first-quarter revenue guidance of $2.4 billion was much higher than the $2.28 billion analysts expected, and its earnings guidance also beat forecasts. CEO Mark Murphy said bookings are growing at a record rate, and year-over-year revenue growth should speed up each quarter through fiscal 2027.

These results highlight ongoing demand driven by large-scale infrastructure investments. Microsoft, Alphabet, Amazon, and Meta are expected to spend about $650 billion this year, which should continue to benefit data center suppliers like Marvell.

Marvell’s strong quarter comes after a positive report from Broadcom earlier in the week, where its CEO said AI-related revenue could top $100 billion by 2027. Susquehanna kept its positive view on Marvell and set a $100 price target.