Nvidia CEO Jensen Huang just handed Marvell Technology the ultimate endorsement, calling it the next trillion-dollar company and sending its shares up 20 percent on Tuesday. We have watched chip stocks ride Nvidia’s coattails for months, but this massive public backing at Computex in Taipei takes the cake.

Marvell shares actually spiked more than 22 percent in premarket trading before settling into a massive rally. I suspect any company getting a public high-five from the king of AI silicon is bound to see its valuation explode overnight.

Why Jensen Huang Is Hyping Marvell

Huang shared the stage with Marvell CEO Matthew Murphy at Computex Week in Taipei on Monday to explain why the firm is so critical to the AI boom. The Nvidia chief pointed out that modern computing tasks are spread across thousands of connected chips that must share data instantly.

“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,” Huang said. We agree that without Marvell’s networking and connectivity chips, these massive AI clusters would basically just be expensive, disconnected silicon.

Huang added that connectivity is the exact reason why Murphy is doing so well and why Marvell is essential. It is a massive vote of confidence from a partner that recently committed a 2 billion USD investment into Marvell.

Custom Silicon and Raised Revenue Targets

Marvell is not just relying on Nvidia’s verbal blessings to justify its soaring stock price, which has more than doubled since the beginning of the year. We analyzed the company’s recent projections, and the numbers show why investors are piling in.

The company expects its custom chip business to generate more than 10 billion USD in annual revenue by fiscal 2029. Cloud service providers are actively looking for alternatives to standard off-the-shelf processors, and Marvell is helping them build specialized chips tailored to specific AI workloads.

To reflect this momentum, management raised its fiscal 2028 annual revenue target to approximately 16.5 billion USD, up from a previous forecast of 15 billion USD. If you are tracking high-flying tech valuations, this jump is almost as aggressive as what we discussed in our Tesla Financial Valuation & Competitor Analysis.

Earnings Beat and the Move to Photonics

Marvell’s actual financial performance is already backing up the hype. The company’s 2027 first-quarter earnings beat analyst estimates in May, posting 2.4 billion USD in revenue and forecasting continued growth.

I find it interesting that Nvidia is also investing billions into other firms developing photonics technology. This process uses light instead of electricity to transmit data, making the transfer far more efficient.

While we wait to see how fast photonics goes mainstream, Marvell’s current grip on cloud computing, enterprise networking, 5G carrier networks, and automotive systems is keeping its data center business incredibly strong.