NVIDIA's CEO, Jensen Huang, has called the custom chip maker Marvell Technology (MRVL) the "next trillion-dollar company," sparking a significant rally in its share price.
This bullish statement was made by Huang while sharing the stage with Marvell's CEO, Matt Murphy, at a major industry event in Taipei, directly fueling investor enthusiasm.
During his keynote address, Huang pointed to Marvell and stated, "Ladies and gentlemen, this is the next trillion-dollar company." As of Tuesday's close, Marvell's market capitalization stood at less than $254 billion, indicating a substantial gap remains to reach that milestone.
Last month, the memory chip sector saw a landmark achievement as companies like Micron Technology, Samsung Electronics, and SK Hynix each surpassed a $1 trillion market cap for the first time, generating widespread discussion within the industry.
Marvell Technology shares closed at $290.79 on Tuesday, representing a single-day gain of $71.36, or 32.52%.
In pre-market trading on Wednesday, the stock continued its ascent, rising another 10%.
The company specializes in optical communication chips and custom AI accelerator chips, often referred to collectively as XPUs in the industry, and supplies its products to major global cloud providers such as Microsoft and Amazon.
Earlier this year, NVIDIA (NVDA) announced a strategic partnership with Marvell, investing $2 billion in the company. Benefiting from the global expansion of AI data center capital expenditures, Marvell forecasts that its custom chip business revenue will exceed $10 billion by fiscal year 2029.
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