Nvidia Declares Marvell Its Next Trillion-Dollar Bet as AI Infrastructure Spending Reaches New Heights
Jensen Huang called Marvell Technology "the next trillion-dollar company" at the Computex trade show in Taipei on Jun. 2, sending shares up 25% in a single session.
The stock had already risen roughly 222% year-to-date before Huang's comments. The surge gave the Santa Clara-based company a market value of $239B.
Nvidia took a $2B stake in Marvell earlier this year as part of a strategic partnership. That stake gives Huang a financial interest in the prediction he made onstage alongside Marvell CEO Matt Murphy.
"That's the reason why Marvell is so essential," Huang said, referencing the connectivity chips that link thousands of processors spread across large data center clusters.
Marvell designs networking chips, custom AI accelerators, and optical transceivers for cloud customers including Microsoft and Amazon, per Yahoo Finance.
The company's custom chip business is projected to cross $10B in revenue by fiscal 2029, driven by growing AI data center investment, per the same report.
Networking Is Now the Growth Driver
Investors once focused on Marvell's custom AI chip designs, but the latest rally is being driven by a different part of the business.
The company expects interconnect revenue to grow over 70% in fiscal 2027, according to Barron's. That's up from a prior forecast of 50%.
Barclays analyst Tom O'Malley estimates Marvell's optical-networking revenue could grow as much as 90% this year and next, per the same report.
Marvell recently acquired optical-networking firm Celestial AI for $3.25B. It also acquired interconnect company XConn for $540M.
Where the Valuation Gap Stands
Marvell's market cap sat near $192B before Huang's comments, well short of the $1T threshold.
A fivefold increase would put it in territory occupied by roughly 15 companies globally, according to Bloomberg.
All but three of those companies are tech firms. The exceptions are Saudi Aramco, Eli Lilly, and Berkshire Hathaway.
Marvell posted $2.4B in revenue for its fiscal first quarter of 2027, beating analyst estimates, per CNBC.
The broader AI chip sector is seeing wide gains this week, with Arm Holdings flagging faster-than-expected progress toward a $15B sales target, per Bloomberg.
Nvidia's $2B stake makes Marvell's success directly relevant to its own ecosystem strategy. Huang's endorsement is less a neutral forecast than a declaration of mutual interest.
