Marvell sees an increase after Jensen Huang labels it the next trillion-dollar company.

      It took just one remark from Jensen Huang to shift tens of billions of dollars. Shares of Marvell Technology soared approximately 25% in premarket trading on Tuesday after Nvidia's CEO, while speaking alongside Marvell's chief Matt Murphy at the Computex event in Taipei, predicted that the chip and networking firm would become the next company to achieve a $1 trillion valuation. This would exceed its current size by more than five times.

      Huang indicated that Marvell's valuation is set to increase now that the era of "useful AI has arrived," positioning the company as a key player in the ongoing data center surge that has also benefited Nvidia. The Santa Clara-based company produces custom chips and optical interconnects that facilitate data transfer within AI clusters, serving as the essential infrastructure of this expansion rather than the spotlight processors. So far this year, its stock has risen by approximately 158%, bringing its market value to around $192 billion before Tuesday’s uptick. Should the premarket increase persist when the market opens, it would mark Marvell's largest intraday surge since May 2023.

      Huang's words should not be taken as wholly impartial. Nvidia invested around $2 billion in Marvell earlier this year, aiming to integrate the smaller company's custom silicon and networking technology more closely with its own systems.

      The forecast arrived amid a series of optimistic announcements from the chip industry on the same day. Memory manufacturer SK Hynix announced it would double its production capacity to alleviate a supply shortage. STMicroelectronics nearly doubled its revenue forecast for data centers in 2026 to about $1 billion and mentioned that sales could potentially double again in 2027. Arm indicated it plans to meet its $15 billion semiconductor revenue goal sooner than anticipated. The unifying factor is the increased spending on AI infrastructure, which major tech firms, including Amazon, Alphabet, and Microsoft, have committed to supporting with hundreds of billions of dollars this year.

      Nvidia has emerged as the most prominent beneficiary of this investment, with its shares rising over 1,400% since 2023 and its market valuation around $5.4 trillion. Much of the current demand is directed toward the types of connective hardware that Marvell provides, and Nvidia has been investing heavily in the surrounding ecosystem, including a multibillion-dollar venture into photonics designed to replace copper in data centers. Earlier this year in Taipei, Huang referred to Taiwan as the “epicenter” of the AI development.

      As of Monday, approximately 15 companies had market values exceeding $1 trillion, most of which are in the technology sector. While Marvell isn't the most valuable company below that threshold—many others carry higher valuations—it currently holds the most pronounced endorsement and the corresponding share price increase. Whether it can truly reach a trillion-dollar valuation remains an open question, one that a brief statement at Computex does not clarify.

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Marvell sees an increase after Jensen Huang labels it the next trillion-dollar company.

Marvell's stock jumped approximately 25% in premarket trading after Nvidia's Jensen Huang forecasted at Computex that it would become the next $1 trillion company.