It took one sentence from Jensen Huang to move tens of billions of dollars. Marvell Technology shares surged about 25% in premarket trading on Tuesday after Nvidia’s chief executive, sharing a Computex stage in Taipei with Marvell boss Matt Murphy, predicted that the chip and networking company would be the next business to reach a $1tn valuation. That would be more than five times its current size.
Marvell’s valuation will climb now that the age of “useful AI has arrived,” Huang said, framing the company as a beneficiary of the same data-centre boom that has carried his own.
The Santa Clara firm makes the custom chips and optical interconnects that move data around AI clusters, the unglamorous plumbing of the boom rather than the headline processors. Its stock has gained roughly 158% this year, giving it a market value of about $192bn before Tuesday’s jump. If the premarket gain holds at the open, it would be Marvell’s biggest intraday move since May 2023.
Huang is not a disinterested cheerleader. Nvidia invested around $2bn in Marvell earlier this year, part of an effort to knit the smaller company’s custom silicon and networking gear more tightly into its own systems.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The endorsement, in other words, talks up a company Nvidia already owns a slice of, which is worth keeping in mind when a $5.4tn chief executive names the next member of his club.
