Chris Morris
Marvell Technology stock surged roughly 25% in premarket trading Tuesday after Nvidia $NVDA +6.26% 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 Marvel is so essential," he said, according to CNBC.
The comment came in what Yahoo Finance described as a lighthearted tone as Huang responded to Murphy's congratulations on Nvidia's Computex announcements. Traders nonetheless treated it as a strong endorsement, and Marvell emerged as the top discussed stock on Stocktwits around 1 a.m. ET Tuesday with extremely high message volume, according to Yahoo Finance.
The gap between Marvell's current valuation and a trillion dollars 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, when the company's market capitalization was approximately $192 billion, according to Bloomberg. About 15 companies had market values exceeding $1 trillion as of Monday, according to Bloomberg.
