Key Highlights
- Shares rose 2.2% to finish at $131.28, achieving back-to-back record closing prices for the first time since January 2025
- Amazon’s homegrown AI processor division now generates $20 billion in annual sales, bolstering Marvell’s outlook
- Earlier concerns about losing the Amazon Trainium chip design partnership had sent shares plummeting over 50% to approximately $50 in 2025
- Barclays projects Marvell’s optical-networking segment revenue could surge up to 90% over the next two years
- B. Riley elevated its price target to $156 from $135 while reaffirming its Buy recommendation
Marvell Technology has experienced a remarkable turnaround after navigating turbulent market conditions throughout the past year. The semiconductor company’s shares reached $131.28 during Monday’s trading session, gaining 2.2% and establishing its second straight record closing price since the beginning of 2025, based on data from Dow Jones Market Data.
Marvell Technology, Inc., MRVL
The recovery represents a dramatic reversal for the chipmaker. During the early months of 2025, MRVL experienced a brutal selloff that saw its value plunge more than 50% from peak levels, bottoming out near $50 per share. The downturn stemmed from widespread speculation that Marvell might be replaced as the designer for Amazon’s upcoming Trainium AI processor generation.
Those concerns have now largely dissipated. The investment community shows growing conviction that Marvell will maintain its critical position within Amazon’s artificial intelligence chip ecosystem.
A major catalyst arrived when Amazon CEO Andy Jassy disclosed that the e-commerce giant’s proprietary AI chip division has already achieved a $20 billion annual revenue run rate. Additionally, Amazon intends to expand external sales of these processors to outside customers. This announcement reinforced investor confidence in Marvell’s strategic value.
KeyBanc’s John Vinh maintains an Overweight stance with a $130 price objective. He anticipates Marvell’s upcoming quarterly results, scheduled for early June release, will modestly exceed Wall Street’s consensus forecasts.
“We anticipate Marvell will deliver results and guidance that slightly surpass expectations, propelled by sustained exceptional data center demand across both conventional and AI-oriented workloads, including hyperscaler AI ASICs (Trainium) and optical networking,” Vinh stated in a research report published Sunday.
Optical Networking Segment Provides Additional Momentum
Beyond the Amazon relationship, Marvell is experiencing significant tailwinds from its optical-networking product line. As artificial intelligence data centers expand in scale and sophistication, they require optical transceivers to facilitate faster, more efficient data transmission by converting electrical signals into optical light.
Marvell manufactures the digital signal processors embedded within these transceivers — a specialized but crucial component of AI infrastructure architecture. Barclays analyst Tom O’Malley recently upgraded MRVL to Overweight status and forecasts the company’s optical-networking sales could potentially expand by as much as 90% during this year and the following year.
Such aggressive growth estimates capture significant market attention. The optical networking segment has quietly emerged as one of the more compelling investment themes within the broader AI technology landscape.
Analyst Price Objectives Trending Upward
B. Riley increased its price objective on MRVL to $156 from $135 on Monday while maintaining its Buy rating. The firm referenced Taiwan Semiconductor’s March revenue figures as providing constructive signals for Marvell’s first-quarter and early second-quarter performance.
TSMC’s supply chain metrics offered analysts enhanced visibility into semiconductor demand patterns across the industry, and the implications for Marvell appeared decidedly positive.
Marvell’s stock price has more than doubled during the trailing twelve-month period, despite enduring the sharp correction earlier in 2025.
The forthcoming June earnings release will represent the next critical milestone. Wall Street will be scrutinizing management commentary regarding both the Trainium design contract status and optical-networking revenue trajectory.
B. Riley’s revised $156 target exceeds the current trading price, suggesting potential upside if positive momentum continues.
