Nvidia CEO Calls Marvell Next Trillion-Dollar AI Giant-Stock Jumps 84%

What happened

Nvidia CEO Jensen Huang reportedly named Marvell Technology the next trillion-dollar company, sparking an 84% rally in Marvell's stock over just one month. The comment carried weight because Nvidia had recently invested $2 billion in Marvell as part of a strategic partnership around NVLink Fusion and silicon photonics technology. Marvell, which now has a market cap of roughly $264 billion, supplies critical infrastructure for AI data centers including optical interconnects, Ethernet switches, and custom chips. Nvidia's Q1 data center networking revenue jumped 199% year over year to $14.8 billion, a segment where Marvell plays a key role. Marvell's own Q1 revenue hit $2.42 billion, up 27.57% annually, with its data center business now accounting for 76% of total sales. Management guided Q2 revenue to $2.7 billion, implying roughly 35% growth year over year, and raised its outlook for the next two fiscal years citing exceptional AI-related bookings.

Why the stock moved

The stock spiked following Huang's endorsement and Nvidia's $2 billion investment, which traders interpreted as validation of Marvell's role in AI infrastructure. Nvidia's own disclosure of the strategic partnership around NVLink Fusion and silicon photonics added credibility to the comment, turning it from a CEO soundbite into an industrial alliance. Marvell's strong bookings, sequential revenue growth in data centers, and raised guidance provided fundamental support. The company also closed two strategic acquisitions in early 2026 focused on photonics and chiplet connectivity, reinforcing its positioning in high-speed networking. Investors viewed the combination of Nvidia's backing, Marvell's product portfolio in 800G and 1.6T optics, and surging AI infrastructure demand as a powerful catalyst.

Bigger picture

The rally in Marvell reflects a broader rotation into AI infrastructure suppliers, companies building the picks and shovels for the AI buildout rather than end-user applications. Hewlett Packard Enterprise shares also jumped 92% in the same period after reporting 148% growth in networking revenue, driven largely by its Juniper Networks acquisition. Meanwhile, Intuit fell 10% after Goldman Sachs cut its price target in half, citing competitive pressure from AI-driven tax software and a 17% workforce reduction. The divergence highlights how the market is rewarding hardware and networking firms tied to AI compute while punishing software companies vulnerable to AI disruption. Marvell now trades at a trailing P/E of 98x and a forward P/E of 75x, rich multiples that assume continued execution on infrastructure deployments and sustained demand from hyperscale customers.

What investors watch

Investors will monitor whether Marvell can sustain its revenue growth trajectory as it scales up production of 800G and 1.6T optics and delivers on its raised fiscal outlook. The durability of Nvidia's partnership, including adoption of NVLink Fusion and joint silicon photonics development, will be a key indicator of Marvell's strategic moat. Broader trends in data center capex, particularly from hyperscale cloud providers building out AI clusters, will drive demand for Marvell's networking products. Any signs of softening in AI infrastructure spending, or competitive pressure from vertically integrated chip designers, could pressure the valuation. Execution on the Celestial AI and XConn acquisitions, along with free cash flow generation, will also matter as the company digests its recent capital raise and integration work.