Marvell Technology: Here’s How It Can Be the Next Trillion-Dollar AI Company
On June 2, 2026, Nvidia Co. (NASDAQ: NVDA) CEO Jenson Huang appeared on stage at Computex 2026 in Taiwan with Marvell Technology Inc. (NASDAQ: MRVL) CEO Matt Murphy and stated that it would be the “next trillion-dollar company.” This sparked a feeding frenzy as investors pounced, sending MRVL shares surging 32.52% that day, adding over $70 billion to the company’s market capitalization. This begs the question, why make such a powerful endorsement?
Here’s Why NVDA's CEO Thinks Marvell Can Be a Trillion-Dollar Company
By framing Marvell as essential to the AI infrastructure buildout. Huang noted that bottlenecks have been shifting from memory data and raw compute to data transmission and connectivity across massively growth data centers. AI clusters are growing larger, becoming disaggregated across thousands of chips and servers, underscoring the important of high-speed networking and connectivity. This makes Marvell one of the key players and beneficiaries from the growing demand for optics, switches and networking chips. The migration from copper cabling to optical communications and silicon photonics falls right into Marvell’s wheelhouse, making it a critical component of the AI stack.
NVIDIA’s $2 Billion Investment in MRVL has grown over 300%
In March 2026, NVIDIA reportedly invested $2 billion in Marvell as part of a strategic investment partnership. The focus is on NVLink Fusion, networking for AI data centers of custom silicon. The investment was made to deepen its partnership and serve as a symbol of confidence. The investment has already grown significantly (by over 300%) since Huang’s comments. Marvell’s custom AI accelerators and networking gear are tied to NVIDIA’s CPUs and NVLink.
Marvell’s Q1 Results Were Good, But Didn’t Blow Away Expectations, nor Did Q2 Guidance
Marvell CEO Matt Murphy commented that revenue growth is expected to continue accelerating every quarter in fiscal 2027, driven by its data center business.
Murphy stated, “We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance we provided last quarter. This improved outlook is being driven by strong demand across a broad set of Marvell solutions, including 800G and 1.6T scale-out optics, 51.2T Ethernet scale-out switches, scale-up optical solutions for NPO and CPO applications, scale-across datacenter interconnect modules, and custom XPU and XPU-attach solutions.”
Marvell Technology has been a member of the Nasdaq 100 index since December 2020, which can be tracked using the Sigmanomics NASDAQ-100 forecast. It also meets the eligibility criteria to become a member of the S&P 500 index, which analysts give it a strong possibility of joining.
Data Center is The Growth Engine for Marvell
For fiscal Q1 2027, Marvell reported earnings per share (EPS) of 80 cents, matching (not beating or crushing) consensus analyst expectations. Revenues rose 27.6% year-over-year (YoY) to $2.42 billion versus $2.41 billion analyst expectations. Its Data Center segment revenues climbed 27% YoY and 11% sequentially to $1.83 billion, beating its previous guidance of 10% growth. Its Communications and Other segment revenues grew 29% YoY and 3% sequentially to $585.1 million.
As for fiscal Q2 2027 guidance, Marvell issued in-line EPS estimates of 88 cents to 98 cents (mid-point 90 cents) versus 90 cents consensus analyst estimates. Revenues are expected between $2.565 and $2.835 billion (mid-point $2.7 billion) versus $2.6 billion analyst estimates. The market was not impressed as shares fell (4.6%) ahead of the underwhelming guidance.
MRVL Stock Needs to Rise Over 4X to Reach a $1 Trillion Market Cap
To reach a one-trillion-dollar market cap, MRVL shares would need to climb above $1,100 per share.
MRVL shares are up over 290% year-to-date (YTD). The stock surged after NVDA CEO’s comments, triggering massive FOMO (fear of missing out) buying, sending shares to all-time highs. The 5-weekly simple moving average (SMA) support is still around $210.00, with its 15-weekly SMA support at $146.43. It has exceeded its weekly upper Bollinger Band (BB) targets of $282.15. The weekly stochastic is indicating an extreme overbought condition at the 93-band. Investors looking for entries would be prudent to wait for the stochastic to pull back under the 80-band stochastic and under the weekly BBs.
Jea Yu
With over 25 years of investing, analysis and trading experience in the equities and options market, Jea brings layered insights into the mechanics of how markets and trends operate. Jea is a four time published author with finance books focused on trading and risk management published by McGraw-Hill, John Wiley & Sons and Bloomberg Press. Jea has written over 2,500 articles across various digital platforms spotlighting and highlighting stocks, trends and trading strategies.
