Marvell Soars 32% After Huang’s Trillion-Dollar Call, June 04

Marvell Technology stock jumped 32% on June 2 after Nvidia CEO Jensen Huang declared the chipmaker “the next trillion-dollar company” during a Computex Taipei keynote. The endorsement marks a turning point in how investors value AI infrastructure beyond GPUs. Marvell designs optical networking chips and custom accelerators that connect data centers. The stock has now gained 255% year-to-date and trades at $301.65 with a market cap near $264 billion.

Why Huang’s Words Moved Markets

Jensen Huang appeared on stage with Marvell CEO Matt Murphy at Computex on June 2. Huang simply stated, “Marvell will be the next trillion-dollar company.” That single sentence triggered a 32% intraday surge, the largest single-day gain in Marvell’s history. The stock extended gains another 12% in premarket trading on June 3, adding roughly $90 billion to the company’s market value over two days.

Huang’s endorsement carried weight because Nvidia invested $2 billion in Marvell earlier in 2026 as part of a strategic partnership. The CEO explained that as AI clusters scale, connectivity becomes the critical bottleneck. “When you break a computing task into many pieces and distribute it across an entire data center, what you really need is connectivity. That’s why Marvell is so good,” Huang said.

Data Center Revenue Accelerates

Marvell reported record revenue of $2.418 billion for Q1 fiscal 2027, up 28% year-over-year. Data center revenue hit $1.52 billion, a 38% jump from the prior year, now representing 73% to 75% of total sales. Within data center, electro-optics made up half the segment revenue.

The company raised full-year fiscal 2027 guidance to approximately $11.5 billion, representing roughly 40% annual growth. Management also offered an optimistic outlook of around $16.5 billion for fiscal 2028. Analysts expect optical networking revenue to grow as much as 90% from 2026 to 2027, while broader data center revenues are projected to increase 30% to 40% year-over-year.

Analyst Targets Climb on AI Infrastructure Thesis

Following Huang’s comments, major analysts raised price targets on Marvell. Stifel set its target at $321, while HSBC targeted $300. Both firms cited expanding data center revenue, explosive optical networking demand, and Marvell’s deepening integration into Nvidia’s AI infrastructure as key drivers.

Marvell’s year-to-date performance now exceeds 200%, making it eligible for S&P 500 inclusion at the next rebalancing on June 19. The company’s custom chip business is projected to cross $10 billion in revenue by fiscal 2029. Recent product launches include the Teralynx switch, which delivers 102.4 terabits per second, and a 260-lane PCIe 6.0 switch for next-generation servers.

Valuation Concerns Linger

Despite the rally, Marvell trades at a premium valuation. The stock carries a price-to-earnings ratio of 103.66 and a price-to-sales ratio of 30.31. Meyka rates the stock a B with a neutral recommendation, citing concerns about elevated valuations relative to fundamentals. The RSI technical indicator stands at 86.92, signaling overbought conditions.

With Meyka’s 12-month price target at $121.99 and analyst consensus around $300 to $321, the stock faces competing signals. The company’s $2 billion Nvidia investment and strategic partnership provide structural support, but execution risk remains as competition intensifies in the AI chip market.

Final Thoughts

Marvell’s 32% surge reflects investor appetite for AI infrastructure plays beyond GPUs. With Meyka rating the stock B and technical indicators flashing overbought, near-term pullback risk exists despite strong fundamentals and analyst upgrades.

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