Marvell Surges 17% Overnight as Nvidia CEO Crowns It 'Next Trillion-Dollar Company'

Marvell Technology (MRVL) stock rose more than 15% overnight on the Blue Ocean alternative system and another 17% before the market opened. This happened after Nvidia CEO Jensen Huang called the company the "next trillion-dollar company" during a talk on stage at Computex in Taipei on Tuesday.

The comment was made with Marvell CEO Matt Murphy right after Murphy finished a major speech showing off the company's newest technologies. Before the overnight move, Marvell stock had already gone up 7% on Monday. So far this year, the price has gone up almost 160%.

Marvell is worth about $192 billion on the stock market right now. For the stock to become worth a trillion dollars, it would have to go up about 420%, which is more than five times its value.

Alphabet, Tesla, Apple, Microsoft, and Meta are some of the 11 U.S. companies that are worth more than $1 trillion. Even though the comment was made in a jokey way, traders took it as a serious support.

What Moved the Market: From Copper to Silicon Photonics

The joint speech was the spark. "Useful AI has arrived," Huang said. He said that the demand for Marvell and Nvidia products is "going through the roof" because of the rise of self-driving AI agents that can run workflows and solve problems.

Huang planned the switch from copper cables to optical communications, saying that computers are "increasingly disaggregated and distributed" and that the industry needs advanced connectivity to join these large systems.

Huang said to Murphy, "That's why Marvell is so important." "That's why you're going to be the next trillion-dollar company."

In the beginning of his speech, Murphy said that connectivity will drive the next big wave of AI innovation. He said that only looking at the processor or memory doesn't show the whole picture of how well gear works.

Copper is reaching its physical limits as AI processes get more complicated, which is slowly pushing companies toward optoelectronics and silicon photonics. Huang pushed for a practical approach: make the most of the life of the current copper architecture and only use optical links where they are technically necessary.

The Retail Frenzy: Stocktwits Goes 'Extremely Bullish'

At around 1 a.m. ET on Tuesday, MRVL became the most talked-about stock on Stocktwits, with "extremely bullish" retail mood and "extremely high" message volume.

A lot of traders shared Huang's support as a sign that prices would go up. "$MRVL "This overnight pricing is kind of crazy," one trader wrote. Another said: "They can just do the keynotes every couple of weeks and the stock will be $1000 by year end."

There was some doubt, but it wasn't loud. Most investors agreed that Marvell is becoming a major player in AI technology and is set to grow quickly.

The Fundamentals: 76% Data Center Revenue and the $2B Nvidia Bet

The facts back up the story. Marvell's first-quarter numbers came out last week, and they said that their data center business now brings in about 76% of their total revenue. This puts them at the forefront of custom silicon and high-speed interconnect technologies.

The company raised its goals for fiscal years 2027 and 2028. It makes telecom semiconductors, special AI accelerators, networking chips, and optical and silicon photonics parts.

Marvell and Nvidia raised $2 billion together in March as part of a larger agreement to add Marvell's custom AI chips, networking gear, and silicon photonics technology to Nvidia's NVLink Fusion ecosystem. The two companies' high-profile showing at Computex showed how close they are becoming as an alliance. Huang talked about other Nvidia partners on Monday, including.

The market value needs to five times what it is now, or $192 billion, in order to reach Huang's trillion-dollar call. The 160% gain so far this year shows that the market is already pricing in AI taking over infrastructure. The fact that 76% of the income comes from data centers shows that the shift from traditional telecom to growth focused on AI is complete.

The number that small traders are joking about is $1000. The rise of 420% needed to become a trillion-dollar company is big, but it has happened before in the AI boom. Now the question is if the growth rates needed for silicon photonics and custom silicon can continue at a level that justifies the new grade.

People in the trade use the NVLink Fusion relationship as a clock. Look out for news from Marvell about new hyperscaler design wins in the next two quarters. Also, see if the $2 billion investment from Nvidia was the partnership's most market-moving moment. Huang's support is helpful. Putting income into action turns it into something else.

The trillion-dollar club has 11 members. Marvell wants to be the 12th.