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 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 total revenue in the near future.

Oppenheimer said Marvell has announced four major AI custom chip design wins across Amazon, 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 Maia accelerator, built on a 3nm process, is set to begin ramping in calendar 2026. The brokerage believes Marvell 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 stock with a $95 price target.

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