New York, June 3, 2026, 04:15 (EDT)
- Marvell jumped 32.5% Tuesday. Nvidia CEO Jensen Huang called it the next “trillion-dollar company.”
- Chip stocks jumped. The Philadelphia semiconductor index gained 5.9%, but the Nasdaq Composite was nearly flat, up just 0.03%.
- Marvell is guiding to quicker growth, but shares are priced high with little margin for error now.
Marvell Technology heads into Wednesday’s U.S. session as the latest focus for Wall Street’s AI stocks after hitting a record close. Shares jumped 32.6% to $290.79 after Nvidia CEO Jensen Huang called Marvell a possible “trillion-dollar company” on stage. The rally put Marvell’s market value around $260 billion, according to market data.
Investors are moving some capital away from the high-profile AI names and into the less noticed parts of data centers: networking chips, optical links, and specialized silicon. These components handle data transfers between servers and processors. Large AI projects in the cloud can’t grow smoothly without these under-the-hood pieces.
Marvell CEO Matt Murphy sat alongside Huang at Computex in Taipei on Tuesday. Nvidia put $2 billion into Marvell earlier this year. Reuters said Marvell shares jumped over 25% in that session, hitting a record after investors picked up on Huang’s comment as a read on demand for Marvell’s custom AI chips and networking equipment.
Marvell still trades far below the figure Huang mentioned. To reach a $1 trillion market value, the stock would need to multiply several times from here. Reuters’ Morning Bid put Marvell’s market cap at about $254 billion after the latest jump and flagged how quickly some other AI-focused chip names have seen their shares move.
Marvell shares surged after the company posted a strong quarter. Marvell reported last week that fiscal first-quarter revenue grew 28% year over year to a record $2.418 billion. The company guided second-quarter revenue to $2.7 billion at the midpoint. Murphy said there were “exceptional AI-related bookings” and raised revenue targets for fiscal 2027 and 2028. Marvell Technology, Inc.
Marvell makes chips and data-movement gear found in AI data centers. It builds custom chips for specific clients or workloads. Its optical interconnects switch electrical signals to light, speeding data through big server clusters.
The major indexes saw modest moves. The S&P 500 picked up 0.13%, the Dow rose 0.45% and the Nasdaq Composite was nearly flat, up just 0.03% on Tuesday. The Philadelphia semiconductor index surged 5.9%. “There’s a lot going on under the hood,” Mike Dickson, Horizon Investments’ head of portfolio management, told Reuters, pointing to “massive dispersion” within the AI infrastructure trade. Reuters
Broadcom ended at a record, with investors looking for similar custom silicon and networking gains as Marvell saw. The chipmaker is set to report Wednesday. The move came as bets grew that AI data-center spending is spreading out from Nvidia’s core processors. Broadcom is seen as one of Marvell’s top rivals in these markets.
The risk isn’t hard to spot. Stocks move faster than revenue. If cloud customers cut back on AI infrastructure buying, Marvell’s custom chip ramps get pushed back, or optical networking margins come in light, Tuesday’s re-rating could flip the other way fast. The shares are near 100 times earnings per share — that’s profit per share.
Huang’s comment has worked as more than just praise for Marvell. The market is trading Marvell like a go-to play on the coming wave of AI infrastructure spending, while investors watch for Broadcom’s numbers and U.S. data on Wednesday to see if chips have run too far.
