June 2 (Reuters) – Marvell Technology’s (MRVL.O), opens new tab shares surged more than 25% on Tuesday after Nvidia’s (NVDA.O), opens new tab CEO Jensen Huang called the chipmaker the next “trillion-dollar company.”
Huang and Marvell CEO Matt Murphy, opens new tab were speaking at the Computex week in Taipei on Tuesday.
Marvell’s shares were last up 22.5% at a record high, giving the company a market capitalization of $234 billion, far below the one-trillion mark that Huang touted.
Nvidia invested $2 billion in Marvell earlier this year, as part of its efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia’s networking gear and central processors.
Marvell last week forecast that its custom chips business would surpass $10 billion in revenue in fiscal 2029, as cloud companies expand AI data centers.
The surge in AI adoption has fueled demand for specialized chips, which along with Marvell’s interconnect technologies, play a critical role in advanced data centers by linking thousands of processors used to train and run AI models.
Marvell looked set to add more than $45 billion in market capitalization if gains hold. Nvidia (NVDA.O), opens new tab shares climbed 3.2%.
Read more How a nudge from Nvidia propelled frugal Micron into the AI boom and a $1 trillion market cap
Read more Exclusive: Top US spy agencies feud over turf, mission
Read more Robot patrol dogs could be coming to Taiwan’s South China Sea islands
