Marvell Technology Inc. shares jumped 26% in premarket trading on Tuesday after Nvidia Corp.’s Jensen Huang predicted the chipmaker will be the next business to hit a $1 trillion valuation. The forecast implies more than a fivefold increase from Marvell's current market capitalization.
Huang's endorsement carries significant weight given Nvidia's own meteoric rise in the AI era. The company has become a bellwether for the semiconductor industry, and its CEO's public predictions often move markets.
Marvell, a networking and data infrastructure chip designer, currently commands a market value far below the trillion-dollar club dominated by tech giants like Nvidia, Apple, and Microsoft. The 26% surge in premarket trading reflects investor excitement over Huang's call.
The prediction suggests Marvell could play a central role in the AI infrastructure buildout, particularly in networking chips that connect massive data centers. However, achieving such a valuation would require sustained growth and market share gains.
Some analysts caution that the prediction may be overly optimistic, given Marvell's current size and competitive pressures from rivals like Broadcom and Intel. The stock's valuation already prices in significant future growth.