Shares in semiconductor company Marvell (MRVL) skyrocketed on Tuesday by as much as 28%, after receiving a notable endorsement from Nvidia. The latter’s CEO, Jensen Huang, praised Marvell as “the next trillion-dollar company.” Currently trading at $279 a share, Marvell Technologies has an intraday market cap of $243.89 billion. The custom chipmaker’s market cap sat just under $192 billion at last close — still a long way from $1 trillion.
Huang’s comments made at Computex week in Taipei sent Marvell stock soaring as he appeared onstage alongside Marvell CEO Matt Murphy. NVIDIAannounced a strategic partnershipwith Marvell earlier this year, along with a $2 billion investment. Last week, the latter also projected its custom chip business would cross $10 billion in revenue by fiscal 2029, fueled by growing AI data center investment.
AI stocks have gained big ground in the last few months, with companies like Marvell, Nvidia, and AMD helping fuel the S&P 500 index. MRVL itself is up over 200% since January 2. Jim Bianco of Bianco Research has pushed the argument further,writingthat “we have not seen the market this concentrated around a single theme in 150 years.” His historical comparison is the railroad boom of the late 19th century — a period when one transformative technology dominated capital markets because it was reshaping the economy itself. “The railroads literally transformed this country, and no other technology has had this potential until AI,” Bianco wrote.
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Furthermore, Marvell has also rallied in recent months after establishing a new partnership with Alphabet (GOOGL). The tech pairing engaged in talks for a new AI chip deal in April. Per areportfrom The Information, Marvell is considering partnering with Alphabet to develop two tensor processing units (TPUs) to take on Nvidia’s (NVDA) GPUs.
Source: Watcher Guru
