If you're looking for a sign that the AI trade isn't dead, JPMorgan just gave you one. The bank is doubling down on Marvell Technology (MRVL) as one of its top semiconductor picks, and it's not hard to see why.

Analyst Harlan Sur reiterated an Overweight rating on Marvell in a Monday note, saying the company's data center growth story has only gotten stronger over the past three months. The demand for optical chips, switching products, and custom silicon is apparently firing on all cylinders.

Marvell is set to report its fiscal second-quarter earnings on Thursday, August 27, 2026, after the market close. And JPMorgan is feeling pretty good about what's coming.

AI Chip Demand Drives Outlook

The bank expects Marvell to deliver results that are in line with or slightly above consensus. The key drivers? Strong demand for optical DSPs used in 1.6T and 800G programs, plus traction for Teralynx 10 switching products. In plain English, the stuff that makes data centers run faster is selling well.

But the real kicker might be in custom silicon. JPMorgan sees Marvell benefiting from the early ramp of Amazon.com Inc.'s (AMZN) next-generation AWS Trainium 3 XPU ASIC program. Volumes are expected to pick up more meaningfully in the second half of the year, which could give Marvell a nice tailwind.

For the fiscal third quarter, JPMorgan is looking for revenue guidance above the Street's $3.03 billion estimate. The firm thinks guidance could come in closer to $3.1 billion, which would imply 13% to 14% sequential revenue growth. That's not too shabby.

Data Center Forecast In Focus

But the bigger question for investors might be what Marvell says about its calendar 2027 and 2028 data center growth. Current expectations call for 55% year-over-year growth in calendar 2027, but JPMorgan sees upside to that forecast. The reasons? Optical strength, Trainium 3 volumes, Microsoft Corp.'s (MSFT) Maia program, and broader XPU-attach opportunities.

Marvell's expanded partnership with Alphabet Inc.'s (GOOGL, GOOG) Google also supports the bull case. JPMorgan said the deal validates Marvell's role in silicon used around AI accelerators, including storage controllers, networking chips, memory-interface controllers, and AI inference offload engines. In other words, Marvell is becoming a key player in the AI infrastructure ecosystem.

All of this could give Marvell a clearer path toward calendar 2028 earnings power near $11 per share, according to JPMorgan. That's above the current Street estimate of $9.64, so there's room for upside if things go well.

As for the stock, Marvell shares were down 4.08% at $227.36 at the time of publication on Monday. But with JPMorgan's backing and a strong earnings report potentially on the horizon, the dip might be a buying opportunity for investors who believe in the AI story.