Shares of Marvell Technology climbed to fresh highs, supported by strengthening ties with Amazon and rising demand for optical networking in artificial intelligence infrastructure.

The stock rose 2.9% to $132.21 on Monday, extending gains after a 7.2% surge last week that marked its first record close since early 2025. The rally reflects renewed investor confidence following earlier concerns over Marvell’s role in Amazon’s next-generation Trainium AI chips.

Sentiment has since shifted, with markets increasingly pricing in Marvell’s continued involvement as Amazon expands its in-house AI chip strategy. CEO Andy Jassy recently signaled that Amazon’s AI chip business is scaling, with the potential to supply third parties and already generating significant annual revenue.

Beyond hyperscaler demand, Marvell is benefiting from a structural tailwind in optical networking — a critical component of AI data centers. As computing workloads intensify, optical transceivers are becoming essential for efficient data transfer, driving demand for the company’s digital signal processors.

Analysts expect this segment to deliver outsized growth, with projections for sharp increases in optical-related revenue over the coming year. Combined with sustained data center demand, this positions Marvell as a key beneficiary of the AI infrastructure buildout.

With earnings expected in early June, analysts anticipate modest upside to both results and guidance, supported by continued strength across AI workloads and cloud infrastructure spending.