(Reuters) -Shares of Marvell Technology slumped 11.3% in premarket trading on Friday as the chipmaker’s data center demand outlook fell short of lofty expectations after investors bet big on custom chips that power AI workloads for cloud giants such as Microsoft and Amazon.

Investor expectations for AI-focused chipmakers have been elevated, but recent results have shown signs of a cooling market. Nvidia’s latest earnings beat forecasts, but its data center growth slowed and shares fell post-report. Peer Broadcom has yet to report.

Marvell’s reliance on so-called custom application-specific integrated circuits exposes it to customer inventory-led swings in demand.

CEO Matthew Murphy said on a post-earnings call on Thursday that data center revenue in the third quarter will be flat on a s

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