In recent weeks, the American semiconductor company Marvell has experienced remarkable growth on the stock market, allowing it to reach a market capitalization of $277 billion, following a positive comment from Jensen Huang, the CEO of Nvidia.
Nvidia – also American – is the dominant company in the artificial intelligence processor market as well as the most valuable company in the world, with a market capitalization of over $5 trillion. For this reason, Huang’s statements always receive considerable attention.
WHAT JENSEN HUANG SAID ABOUT MARVELL
During his speech at Computex, the Taipei technology fair, Jensen Huang said he believes Marvell will be the next “trillion-dollar company.” A very strong statement, considering that Marvell’s market capitalization is quite far from that threshold and that there are not even twenty companies worldwide valued at at least one trillion dollars: the latest to join this group is SpaceX, Elon Musk’s aerospace company.
In the trillion-dollar club are the already mentioned Nvidia ($5.2 trillion), Alphabet ($4.6 trillion), Apple ($4.5 trillion), Microsoft ($3 trillion), Amazon ($2.8 trillion), TSMC ($1.9 trillion), Saudi Aramco ($1.8 trillion), and Tesla ($1.6 trillion).
WHY MARVELL IS RELEVANT
Although it does not seem likely that Marvell will reach a $1 trillion market capitalization in the short term, its stock market performance is still remarkable: in 2026 so far, the stock has grown by over 265 percent, and on June 22 it is expected to enter the S&P 500 index, which gathers the five hundred largest American companies by market capitalization.
The stock market enthusiasm for Marvell is due to the importance of its technology for the artificial intelligence industry: it is developing silicon photonics, a technology that – simplifying – uses light instead of copper cables to enable data transfer at higher speeds. Nvidia is collaborating with Marvell, which is one of its clients, and last March invested $2 billion in it: in jargon, this is called a “circular deal.”
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The success of Marvell (and Nvidia) therefore depends on the investment plans in artificial intelligence of the major tech companies, the so-called Big Tech, which this year plan to collectively spend $700 billion on infrastructure and computing capacity.
WHAT MARVELL SHOULD DO TO REACH $1 TRILLION
For Jensen Huang’s prophecy to come true, according to calculations reported by Bloomberg, Marvell would need to reach a revenue of $60 billion with a price-earnings ratio of about 50. However, forecasts for the company’s results indicate revenue of $11.5 billion in fiscal year 2027, which could approach $30 billion by fiscal year 2030.
