02:53 PM EDT, 05/30/2025 (MT Newswires) -- Marvell Technology ( MRVL ) remains confident in its multi-generational relationship with Amazon.com's ( AMZN ) Amazon Web Services and is actively involved in next-generation AI accelerator projects, Oppenheimer said.

Data center revenue growth was driven by AI custom chips and optical products, which now account for more than half of Marvell's ( MRVL ) data center segment and nearly 40% of total revenue. The firm said in a Thursday note that it expects AI-driven revenue to surpass 50% of Marvell's ( MRVL ) total revenue in the near future.

Oppenheimer said Marvell ( MRVL ) has announced four major AI custom chip design wins across Amazon ( AMZN ), Microsoft ( MSFT ) , Google, and Meta Platforms (META).

The firm said AWS is ramping Trainium2 this year, with unit volumes potentially reaching one million, while Microsoft's ( MSFT ) Maia accelerator, built on a 3nm process, is set to begin ramping in calendar 2026. The brokerage believes Marvell ( MRVL ) is already in early discussions for Trainium4, the next generation of AWS's custom silicon.

Oppenheimer said the company maintains a leadership position in high-speed optical products and is developing new technology to support 3.2 terabit-per-second solutions, further strengthening its competitive edge.

The firm reiterated its outperform rating on Marvell's ( MRVL ) stock with a $95 price target.

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