Huang Calls Marvell ‘Next Trillion-Dollar’ Company; Shares Jump

At Taipei’s Computex on June 2, Nvidia CEO Jensen Huang made a surprise appearance during Marvell CEO Matt Murphy’s keynote and called Marvell Technology the ‘next trillion-dollar company.’ Marvell shares rose about 33% in a single session, adding roughly $56 billion and lifting the company’s market value above $250 billion.

Huang spent about 10 minutes on stage and highlighted Marvell’s networking and optical technology used in data centers that run large-scale artificial intelligence workloads. His comments followed Nvidia’s roughly $2 billion equity investment in Marvell, a deal that connects Marvell’s custom accelerators and optical networking with Nvidia’s AI architecture.

Traders reacted immediately. The roughly 33% one-day gain was Marvell’s largest single-session increase on record. Over two trading days the stock climbed more than 45%, adding about $90 billion to market value.

Marvell produces switches, optical transceivers and custom silicon that connect clusters of processors for high-speed data transfer. Data center products make up the majority of the company’s revenue.

Some investors say connectivity is the next bottleneck for large AI systems after raw compute and memory. Other investors and analysts point to valuation and competition risks, noting that Marvell trades at a high multiple by some measures and faces established rivals in networking silicon such as Broadcom.

Investor Michael Burry’s Scion Asset Management bought put options on one million Nvidia shares. Burry highlighted customer concentration at Nvidia, noting the top three customers account for 64% of Nvidia’s accounts receivable, up from 56% in the prior quarter and about 33% in 2020. He warned that “the conditions for an aggressive fall are as strong as they have been in the history of the stock.”

A Moody’s analysis published earlier this year estimated that Microsoft, Amazon, Alphabet, Meta and Oracle have about $662 billion in future data center lease commitments not yet shown on their balance sheets. The report noted those obligations would become cash costs as leases commence.

Other market signals include reports of falling rental prices for certain GPUs and some investors trimming exposure or taking short positions in chip stocks.

Marvell’s management has emphasized its focus on data center networking and custom silicon. Nvidia’s equity investment and Huang’s public endorsement underline a closer strategic link between the two companies. Analysts remain broadly positive on Nvidia, while forecasts for Marvell vary based on assumptions about market share, pricing and competitive responses.