Marvell soars after Nvidia CEO says it will be the “next trillion-dollar company”
Marvell Technology surged after Nvidia CEO Jensen Huang called the chipmaker, which his company has a stake in, the next “trillion-dollar company.”
Huang made the comments at the Computex expo in Taipei on Tuesday. It’s not the first vote of confidence for Marvell from the world’s most valuable company: Nvidia announced a strategic partnership with Marvell in March, saying that it has invested $2 billion in the company.
Marvell’s market capitalization as of Monday’s close was around $192 billion, meaning that Huang’s prediction would hinge on a more than 420% rally. Huang said computing is becoming increasingly disaggregated and distributed, creating a need for advanced connectivity, which is what Marvell specializes in.
“That’s the reason why Marvell is so essential,” Huang said, standing onstage next to Marvell CEO Matt Murphy. “That’s why you’re going to be the next trillion-dollar company.”
The stock rose 23% in premarket trading on Tuesday and is up more than 145% since the start of the year.
Huang also projected that demand for optics will continue to grow over the next 5 to 10 years. Optics companies such as POET Technologies, Lumentum, Coherent, and Applied Optoelectronics rose early Tuesday.
These companies make optical components that use light, rather than traditional copper interconnects, to move data within and between servers in data centers, a technology increasingly seen as critical for scaling artificial intelligence capacity. Huang said, “You use optics wherever you must and you use copper wherever you can.”
“Ultimately, the right strategy is to scale up with copper as long as you can,” he continued. “After that, you scale up further with optics and you scale out with optics and you scale across with optics.”
Huang also projected that demand for optics will continue to grow over the next 5 to 10 years. Optics companies such as POET Technologies, Lumentum, Coherent, and Applied Optoelectronics rose early Tuesday.
These companies make optical components that use light, rather than traditional copper interconnects, to move data within and between servers in data centers, a technology increasingly seen as critical for scaling artificial intelligence capacity. Huang said, “You use optics wherever you must and you use copper wherever you can.”
“Ultimately, the right strategy is to scale up with copper as long as you can,” he continued. “After that, you scale up further with optics and you scale out with optics and you scale across with optics.”
