Marvell Technology stock hit $272.49 in premarket trading on Tuesday, a 24% jump, after Nvidia CEO Jensen Huang made a bold public call at the Computex conference in Taipei.
Marvell Technology, Inc., MRVL
Speaking alongside Marvell CEO Matt Murphy, Huang pointed to Marvell’s role in networking infrastructure as essential to powering AI data centers.
“That’s the reason why Marvell is so essential,” Huang said. “That’s why you’re going to be the next trillion-dollar company.”
Marvell closed Monday at $219.43, up 7%, giving it a market cap of around $192 billion. A fivefold increase from current levels would push that past $1 trillion. If premarket gains hold, Tuesday’s move alone would add more than $47 billion in market cap.
The stock has more than tripled over the past 12 months.
Marvell makes the digital signal processors inside optical transceivers — the components that convert electrical signals into light to transfer data more efficiently across large AI data centers.
As AI models scale up, data centers need faster and more efficient networking to keep everything connected. That’s where Marvell fits in.
Barclays analyst Tom O’Malley projects Marvell’s optical-networking revenue could grow by as much as 90% this year and next.
Marvell has been active on the acquisition front. It recently announced the purchase of optical-networking company Celestial AI for $3.25 billion, and interconnect technology company XConn for $540 million.
Nvidia itself has put $2 billion into Marvell as part of a collaboration that lets customers combine components from both companies to build semi-custom AI infrastructure.
Nvidia has been investing in several companies across the AI ecosystem. Some skeptics have raised questions about that strategy, but the logic is straightforward — it diversifies Nvidia’s revenue base and helps lock in demand for future chip generations.
Nvidia stock also gained 1.4% on Tuesday.
Marvell’s premarket move on Tuesday reflects how much weight Huang’s words carry in the AI infrastructure space right now.
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