Nvidia's Jensen Huang Crowns Marvell the 'Next Trillion-Dollar Company,' and the Stock Rockets 33% in Its Biggest Day Ever
Four words from the world's most powerful chip executive added roughly $60 billion to Marvell's market value in a single session, the largest one-day gain in the company's history.
Shares of Marvell Technology soared nearly 33% on Tuesday, the chipmaker's largest single-day gain ever, after Nvidia Chief Executive Jensen Huang told an audience in Taipei that the company designing networking silicon for artificial-intelligence data centers could become "the next trillion-dollar company."
The remark, delivered Monday during an onstage appearance with Marvell CEO Matthew Murphy at Computex week in Taiwan, sent investors scrambling. By the close, Marvell had added roughly $60 billion in market value, narrowly eclipsing its previous best single-session jump, set in May 2023. The move underscored how completely the market now hangs on Huang's assessment of which companies sit at the center of the AI build-out.
"When Nvidia's CEO speaks, investors listen," became the unofficial summary of the day on Wall Street. Huang argued that Marvell's networking and connectivity chips are indispensable to modern data centers, where computing tasks are spread across thousands of interconnected processors that must exchange data almost instantaneously. As AI models grow larger, the bottleneck increasingly shifts from raw processing power to the speed at which chips can talk to one another — precisely the niche Marvell occupies.
The endorsement was not the first sign of the deepening relationship between the two firms. In March, Nvidia announced a $2 billion investment in Marvell as part of an agreement to collaborate on silicon photonics, the technology that uses light rather than electrical signals to move data between chips. The tie-up positions Marvell as a key supplier of the plumbing that knits Nvidia's graphics processors into the massive clusters powering systems like ChatGPT and its rivals.
Marvell's fundamentals have been climbing alongside the hype. The company recently reported record fiscal first-quarter revenue of $2.418 billion, and executives have told analysts they expect custom chip revenue alone to surpass $10 billion by fiscal 2029. Reaching a $1 trillion valuation would still require the stock to multiply many times over from current levels, a leap that even bullish analysts caution is far from guaranteed in a sector prone to sharp swings. Skeptics also note that a market so willing to reprice a company by tens of billions on a single executive's offhand remark is, by definition, a market running on sentiment as much as substance.
The episode also illustrated Huang's singular sway over the semiconductor trade. As the chief executive of the world's most valuable chipmaker and the de facto architect of the AI boom, his assessments now move share prices the way a central banker's words move bond yields. Suppliers angle for his praise; competitors brace for his slights. On Tuesday, a few sentences in Taipei were enough to rewrite Marvell's standing on Wall Street, at least until the next earnings report forces investors to test the enthusiasm against results.
Still, Tuesday's frenzy captured the mood of a market increasingly willing to bet enormous sums on the companies building AI's physical backbone. For Marvell, long overshadowed by larger names, a single Huang sentence accomplished what years of earnings calls could not — vaulting it, at least for a day, into the conversation about Silicon Valley's most valuable enterprises.
Originally reported by CNBC.