June 2 (Reuters) – Marvell Technology’s shares surged more than 25% on Tuesday after Nvidia’s CEO Jensen Huang called the chipmaker the next “trillion-dollar company.”
Huang and Marvell CEO Matt Murphy were speaking at the Computex week in Taipei on Tuesday.
Marvell’s shares were last up 22.5% at a record high, giving the company a market capitalization of $234 billion, far below the one-trillion mark that Huang touted.
Nvidia invested $2 billion in Marvell earlier this year, as part of its efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia’s networking gear and central processors.
Marvell last week forecast that its custom chips business would surpass $10 billion in revenue in fiscal 2029, as cloud companies expand AI data centers.
The surge in AI adoption has fueled demand for specialized chips, which along with Marvell’s interconnect technologies, play a critical role in advanced data centers by linking thousands of processors used to train and run AI models.
Marvell looked set to add more than $45 billion in market capitalization if gains hold. Nvidia shares climbed 3.2%.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Subhranshu Sahu, Janane Venkatraman and Shinjini Ganguli)
