Semiconductor stocks gain after Marvell discloses new AI chip

** Shares of semiconductor companies rise on Wed after Marvell Technology MRVL 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 SOX gains 2.5%, with some of the biggest gainers Broadcom AVGO up ~5%, Rambus RMBS up 4.3%, Micron Technology MU up 4%, and Nvidia NVDA 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 ARM for another, both of which will generate revenue this year.

** MRVL, which helps customers such as Amazon.com AMZN 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%