By Adam Clark

Marvell Technology is setting new highs for the first time in more than a year. The chips-and-networking company is getting a boost from Amazon.com, as well as excitement about its optical business.

Marvell was up 3.7% at $133.30 in premarket trading Monday. That was set to add to a 7.2% gain on Friday, which saw it set its first record closing high since January 2025, according to Dow Jones Market Data.

The stock has been on a wild ride since the start of 2025. Worries that it might lose out on designing the next generation of Amazon's Trainium artificial-intelligence chips sent the shares down more than 50% to around $50 early last year.

However, Wall Street has gradually become more convinced that Marvell will retain its position with Amazon, which is increasing its own AI chip ambitions. Amazon CEO Andy Jassy said last week the technology giant could begin to sell more of its own AI processors to third parties and that the business was already generating annual sales of $20 billion.

Additionally, Marvell has been lifted by excitement about the growing need for optical networking within AI data centers.

Ever-larger AI data centers require optical transceivers to more efficiently transfer data by converting electrical signals into light and Marvell makes the digital signal processors within those transceivers. Marvell's optical-networking revenue could grow by as much as 90% this year and next, according to Barclays analyst Tom O'Malley, who upgraded the stock to Overweight last week.

Investors should trust in both Amazon and optical-networking as catalysts for Marvell's next earnings report, which is expected in early June, according to KeyBanc analyst John Vinh.

"We expect Marvell to post slightly better results and slightly higher guidance, driven by continued outsized data center demand across both traditional and AI workloads, including hyperscaler AI ASICs (Trainium) and optical networking," wrote Vinh in a research note on Sunday.

Vinh has an Overweight rating and a $130 target price on Marvell stock.

Write to Adam Clark at adam.clark@barrons.com

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April 13, 2026 07:35 ET (11:35 GMT)

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