Huang’s Computex Stamp Sends Marvell Stock Soaring as AI Networking Demand Surges

Jensen Huang's remark that Marvell could be the next trillion-dollar company boosts shares 14.6% to a 52-week high, highlighting its role in AI data centers and NVLink Fusion.

When Nvidia CEO Jensen Huang took the stage at Computex in Taipei alongside Marvell chief Matt Murphy, his off-the-cuff remark that Marvell had what it took to become “the next trillion-dollar company” was anything but idle chatter. The market seized on the endorsement with ferocity: Marvell shares shot up as much as 25% in pre-market trading, and by Tuesday’s close had added 14.62% to reach a fresh 52-week high of €215.95. The move lifted the company’s market capitalization to roughly $234 billion and pushed the stock to new highs after a 12-month run that has already seen it more than quadruple.

The comment was delivered in a relaxed, conversational tone, but its implications are anything but casual. Huang used the opportunity to underline Marvell’s increasingly central role in the next generation of AI data centers. “The emerging AI paradigm of agents demands that compute be distributed across entire data centers,” he explained. That shift is creating a bottleneck known inside the industry as the “copper wall” — the point at which traditional server-rack interconnects can no longer keep pace with exploding data traffic. Marvell’s custom silicon and optical technologies, Huang argued, are purpose-built to break through that barrier.

Beneath the headline numbers lies a partnership that has deepened rapidly. Nvidia disclosed earlier this year that it had invested $2 billion in Marvell, and the collaboration is most visible in NVLink Fusion, a technology that marries Marvell’s connectivity and optics expertise with Nvidia’s high-performance computing platforms. The courtship makes strategic sense: as hyperscale cloud operators race to scale clusters without hitting thermal or power limits, Marvell’s networking kit — switches, interconnects, and custom ASICs — has become a must-have piece of the AI hardware stack.

The financial results underscore why Huang’s blessing carries weight. Marvell posted a record first-quarter revenue of $2.418 billion for its fiscal 2027, a 28% year-on-year increase. The data-center segment now accounts for about 76% of total revenue, up from roughly 50% just two years ago. Operating cash flow hit an all-time high of $638.8 million, providing the firepower to invest in the product pipeline that Huang highlighted.

That pipeline includes the Teralynx T100, a switch chip rated at 102.4 terabits per second for large-scale AI clusters — a 25% efficiency improvement over earlier generations. Management has laid out an ambitious roadmap: revenue of $16.5 billion is targeted for fiscal 2028, and custom-chip sales alone are expected to surpass $10 billion by 2029. For the current quarter, the company guided for revenue between $2.57 billion and $2.84 billion, with the midpoint around $2.7 billion.

For all the enthusiasm, the rally has not been without technical signals worth watching. The relative strength index (RSI) stood at 38.1 after the surge, suggesting the stock is not yet overheated after its long climb — but also that volatility remains a feature of this name. The 200-day moving average, at €86.01, is a reminder of how far the shares have traveled in a year; they now trade far above that line, reflecting the dramatic re-rating the market has awarded the AI-networking play.

Huang’s endorsement is the kind of third-party validation that money managers cannot ignore. It adds a powerful narrative layer to a story already supported by record numbers and a clear strategic position in the AI ecosystem. Whether the pre-market fireworks translate into a sustained re-rating will become clearer when regular trading resumes, but for now, Marvell has what few chip companies possess: a ringing endorsement from the industry’s most influential CEO, backed by the numbers to match.