Marvell Stock Surges After Nvidia CEO Endorsement

Marvell Technology Inc. (MRVL), a fabless semiconductor company specializing in AI data-center interconnects, saw its stock rise after Nvidia CEO Jensen Huang called it the "next trillion-dollar company" on June 2, 2026, at Computex.

Huang Endorsement and Market Reaction

At Computex in Taipei, Huang publicly singled out Marvell as a key AI partner, linking the company’s interconnect and custom silicon solutions to surging demand for AI computing and connectivity. Following his remarks, Marvell’s shares jumped more than 24% in U.S. premarket trading, adding roughly $44–47 billion to its market value if sustained. The company’s market capitalization before the move was just under $192 billion.

Nvidia Investment and Growth Outlook

Earlier in 2026, Nvidia disclosed a $2 billion strategic investment in Marvell to align Marvell’s custom silicon and optics with Nvidia’s AI networking and CPU platforms. Marvell recently forecast that its custom-chips business would exceed $10 billion in revenue by fiscal 2029, driven by expanding AI data-center deployments from cloud customers.

Investor analysis interprets this trajectory as custom silicon more than doubling in fiscal 2028, rising from about $1.5 billion in fiscal 2026 to reach the 2029 target. Recent commentary highlights record first-quarter operating cash flow and strong AI-driven data-center revenue growth as supporting evidence for the company’s long-term plan.

Valuation and Investor Caution

Some analysts have reassessed Marvell’s valuation following the surge. One who previously rated the stock a strong buy downgraded it to Hold, noting that at a share price near $205, the stock traded at roughly 70 times trailing earnings and 50 times forward earnings, with consensus forecasts implying only about 8% further upside. Another investor pointed to the stock’s rise from approximately $89 to $200 and said upcoming second- and third-quarter management commentary will be critical to reaffirm the fiscal 2029 custom-chip revenue target.

The Computex endorsement and Nvidia’s strategic stake accelerated near-term repricing, but sustaining that valuation depends on management confirming the custom-chip revenue trajectory in upcoming quarterly reports.