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Jensen Huang, CEO, Nvidia, Called Marvell "The Next Trillion-Dollar Company," and the Stock Immediately Exploded
A single sentence from Nvidia's CEO at Computex in Taipei sent Marvell Technology surging more than 25% in a matter of hours, reigniting the AI chip frenzy all over again.
Nvidia's CEO delivered a bombshell at the Computex technology trade show in Taipei on Monday when he joined Marvell Technology CEO Matthew Murphy onstage and declared his company to be "the next trillion-dollar company." The market's response was immediate and emphatic, Marvell shares surged more than 25% in premarket trading Tuesday, extending a year-to-date gain that has already reached 158%.
Huang's case for Marvell centered on a simple but fundamental point about how modern AI computing actually works. As computing tasks are broken up and distributed across thousands of interconnected chips inside massive data centers, the connective tissue holding all of that together, the networking and connectivity silicon Marvell specializes in, becomes indispensable. "What makes it possible is connectivity," Huang said. "That's the reason why Marvell is so essential."
"The next trillion-dollar company, ladies and gentlemen."
The gap between where Marvell stands today and that milestone is substantial, the Santa Clara-based chipmaker currently carries a market value of roughly $191 billion, meaning it would need to climb more than 400% to crack the trillion-dollar club, which counts about 15 members globally.
But Nvidia's backing gives the ambition credibility. Earlier this year, Nvidia committed $2 billion to Marvell as part of a broader strategic partnership, and Marvell last week forecast its custom AI chip business would surpass $10 billion in annual revenue by fiscal 2029.
Marvell's most recent quarterly results already showed momentum, with data center operations accounting for roughly 76% of total revenue. For Huang, a company that keeps AI's vast infrastructure connected and running at speed is not a side bet, it is the infrastructure. And if Tuesday's trading action is any indication, investors are listening closely.
