The Fed Removes Reference to Further Rate Adjustments in Statement

Marvell expects total revenue to reach $20 billion for fiscal year 2028, higher than the previously stated $18 billion and exceeding Wall Street’s estimate of $18.2 billion. The company also expects fiscal year 2031 revenue to reach between $70 billion and $90 billion, far surpassing Wall Street’s forecast of $46.85 billion. Following the announcement, Marvell's share price rose by nearly 9% at one point.

San Francisco Federal Reserve President Mary Daly stated that the chip demand driven by the AI boom may spread from high-end AI chips to a broader semiconductor market. Some companies have already begun securing supplies of memory chips in advance and even redesigning products to reduce chip usage. She believes that the inflationary pressure brought on by AI may not be a one-off shock and that easing this pressure could take longer than the one-to-three-year period typically assumed by the Federal Reserve. Daly expressed her full support for the Fed’s rate hike in September, adding that whether further action is needed will depend on whether shocks such as AI developments, tariffs, and higher energy prices due to Middle East conflicts subside. If these factors persist or overlap for an extended period, further tightening may be required; however, if these shocks are only temporary, additional rate hikes may not be necessary.