By Dhirendra Tripathi

Investing.com – Marvell Technology stock (NASDAQ:) surged 22% Friday as the company gave a robust forecast for the current quarter, citing strong potential in 5G and data center businesses.

Marvell Designs and manufactures chips that are used in data centers, vehicles and other areas. This is a huge market but has had to be constrained by supply. Taiwan Semiconductor, NYSE:), also receives designs.

Marvell’s CEO Matt Murphy said that the company expects sequential revenue growth to 9 percent in the fourth quarter. This is led by 5G which is projected by increasing by 30% sequentially. The data center, however, is forecast to continue growing in the double figures on a percentage basis.

Marvell anticipates that second quarter net revenue will be $1.32billion with an annual plus or minus of 3%. The adjusted gross margin should remain around 65%.

This comes after the company’s third-quarter revenue rose 61% to $1.21 billion, exceeding the top end of its previous estimate as well as analysts’ expectations.

Data centers led the growth of all its business segments. Data centers, Marvell’s largest contributor at 41% of its total revenue, grew 15% from the prior quarter and 109% year-over-year.

The adjusted profit per share rose 72% to 43 cents and was higher than expected.