Marvell Technology stock surged roughly 25% in premarket trading Tuesday after Nvidia $NVDA CEO Jensen Huang called the chipmaker the next trillion-dollar company during an appearance at the Computex trade show in Taipei.
Nvidia entered into a broader partnership with Marvell earlier this year that included a $2 billion investment in the company
Harun Ozalp / Anadolu via Getty Images
Marvell Technology stock surged roughly 25% in premarket trading Tuesday after Nvidia $NVDA CEO Jensen Huang called the chipmaker the next trillion-dollar company during an appearance at the Computex trade show in Taipei.
Huang made the remark while joining Marvell CEO Matthew Murphy onstage at the annual technology conference, according to CNBC. "The next trillion-dollar company, ladies and gentlemen," Huang said of Marvell, according to MarketWatch. Huang added that Marvell's networking and connectivity chips are essential to data centers where computing tasks are spread across thousands of connected chips. "That's the reason why Matt's doing so well. That's the reason why Marvell is so essential," he said.
The gap between Marvell's current $191 billion market cap and it joining the trillion-dollar club is substantial. Reaching a $1 trillion valuation would require Marvell's stock to climb more than 400% from where it stood at Monday's close. About 15 companies had market values exceeding $1 trillion as of Monday, according to Bloomberg.
Marvell stock has gained 158% so far this year. The Santa Clara, California-based company designs high-performance chips used in data center infrastructure, cloud computing, AI, enterprise networking, and other applications. In results released last week, data center operations were responsible for approximately 76% of the company's total revenue.
Earlier this year, Nvidia entered into a broader partnership with Marvell that included a $2 billion investment in the company. Marvell last week forecast its custom chips business would surpass $10 billion in revenue in fiscal 2029, according to Reuters.
Nvidia stock also gained 1.8% in premarket trading Tuesday. Since 2023, Nvidia shares have surged more than 1,400%, pushing the company's total valuation to $5.4 trillion.
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