Nvidia CEO Predicts Marvell Could Become Trillion-Dollar Giant, Its Market Value Up By $47 Billion

Chip company Marvell Technology could become a trillion-dollar company in the future owing to the growing demand for artificial intelligence (AI) chips, Nvidia CEO Jensen Huang has said.

Soon after his remarks, Marvell's stock jumped about 25%, adding more than $47 billion in market value in a single day. At the same time, Nvidia's shares also went up slightly by around 1.8%.

Looking at its year-to-date performance, the stock was around $80-$90 at the start of the year. It moved slowly in the early months but then started rising quickly from April onwards. Now it is trading above $200, which means it has gained more than 158% this year.

Huang said, "Marvell is set to be the next trillion-dollar company as its networking and connectivity chips are essential to data centres where computing tasks are spread across thousands of connected chips that need to share data quickly."

Marvell's market value is about $192 billion, a little far from the $1 trillion level that Huang mentioned.

 Marvell does not make the main AI chips like Nvidia. Instead, it makes the "highways and bridges" that connect all the chips together inside data centres. Huang explained that without strong connectivity, AI systems cannot work efficiently at such a large scale.

"When you take a computing problem, and you disaggregate it into a lot of parts, and you distribute it across the entire data center, what's necessary is connectivity. That's the reason why Matt's doing so well. That's the reason why Marvel is so essential," Huang said.


Earlier this year, Nvidia invested $2 billion in Marvell. This investment is part of a plan to make it easier for companies to use Marvell's custom AI chips along with Nvidia's networking systems and processors. Marvell recently said that its custom chip business could cross $10 billion in revenue by 2029.


Nvidia is also investing in other companies that are working on photonics technology.