Marvell Technology's (MRVL) artificial intelligence-led growth remains intact and is on track to accelerate in H2, Oppenheimer said in a fiscal Q1 preview.

The firm said in a research note Thursday it sees upside to the company's fiscal Q1 results due next week and also expects a stronger outlook for fiscal Q2, both driven by AI demand across connectivity and ASIC segments.

While management recently narrowed fiscal Q1 revenue guidance to about $1.875 billion plus or minus 2%, the brokerage said it expects strength from the data center segment to support potential outperformance.

Oppenheimer expects Marvell to post $0.61 in fiscal Q1 diluted earnings per share.

By segment, the firm forecasts Marvell's data center business, which makes up roughly 75% of total revenue, to rise 76% year-over-year and 5% quarter-over-quarter in fiscal Q1, led by demand for AI-related optics and custom chips.

Management expects AI-related revenue to "easily" exceed $2.5 billion in calendar 2025, but Oppenheimer said it sees potential for AI ASIC revenue alone to reach $3 billion this year. The firm highlighted growing traction from hyperscale customers, including Amazon.com (AMZN), Microsoft (MSFT), Alphabet's Google (GOOG, GOOGL), and Meta (META).

Amazon's Trainium2 chips, which use Marvell components, could surpass 1 million units shipped this year. Microsoft's Maia chip is set to ramp in early 2026, and Google's Axion CPU is already scaling. Marvell is also developing a custom network interface chip for Meta, according to the note.

The firm reiterated its outperform rating on the stock with a $95 price target.

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