Marvell rises after Jensen Huang labels it as the next trillion-dollar company.

      A single remark from Jensen Huang resulted in a multi-billion dollar impact. Marvell Technology's stock rose nearly 25% in premarket trading on Tuesday after Nvidia's CEO, while sharing a stage at Computex in Taipei with Marvell CEO Matt Murphy, predicted that the chip and networking firm would soon become the next company to achieve a $1 trillion valuation. This would represent more than five times its current worth.

      Huang emphasized that Marvell's valuation would increase as the era of "useful AI has arrived," positioning the company as a key player in the same data center surge that has benefited Nvidia. The Santa Clara-based company produces the custom chips and optical interconnects necessary for data movement in AI clusters, serving as the essential infrastructure of the boom rather than the prominent processors. Its stock has risen approximately 158% this year, bringing its market value to around $192 billion before Tuesday’s increase. If the gains in premarket trading continue at market opening, it would mark Marvell's largest intraday movement since May 2023.

      Huang is not an impartial supporter; Nvidia invested roughly $2 billion in Marvell earlier this year as part of efforts to integrate the smaller company’s custom silicon and networking products more closely with Nvidia’s own infrastructure. It is important to note that this endorsement comes from a CEO whose company is valued at $5.4 trillion, as he identifies the next potential member of this exclusive group.

      This forecast coincided with a stream of positive news in the chip industry on the same day. Memory manufacturer SK Hynix announced it would increase production capacity to alleviate a supply shortage. STMicroelectronics nearly doubled its 2026 revenue forecast for data centers, projecting around $1 billion, with expectations of further doubling in 2027. Arm indicated it expects to achieve its $15 billion semiconductor revenue goal sooner than anticipated. The unifying factor is increased spending on AI infrastructure, with major tech corporations like Amazon, Alphabet, and Microsoft committing hundreds of billions of dollars this year to support it.

      Nvidia has emerged as the primary beneficiary of this investment, with its shares skyrocketing over 1,400% since 2023, resulting in a market capitalization of about $5.4 trillion. Much of the demand currently flows through the type of interconnect hardware that Marvell produces, and Nvidia has been heavily investing in the broader ecosystem, including a significant multibillion-dollar investment in photonics aimed at replacing copper in data centers. Huang previously referred to Taiwan as the “epicenter” of the AI expansion during another appearance on the same Computex stage this year.

      As of Monday, around 15 companies had market valuations exceeding $1 trillion, nearly all in the technology sector. While Marvell is not the most valuable company below that threshold, as many others hold higher valuations, it currently enjoys the most significant endorsement and a corresponding share price increase. Whether it will reach the trillion-dollar mark remains to be seen, and a statement made at Computex does not provide a definitive answer.