Jensen Huang Declares Marvell the Next Trillion-Dollar Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Strategic Partnership Investment: Nvidia and Marvell announced a strategic partnership in late March, with Nvidia investing $2 billion into Marvell to leverage the NVLink ecosystem for developing semi-custom AI infrastructure, thereby enhancing Marvell's technological advancement and market competitiveness in the AI sector.
- Financial Growth Potential: Marvell's fiscal 2026 revenue approached $8.2 billion, marking a 42% year-over-year increase, with first-quarter fiscal 2027 revenue hitting $2.4 billion; the company anticipates a 40% growth in data center revenue and a 50% increase in its interconnect business, indicating strong market demand and growth potential.
- Market Valuation Challenges: Although Marvell's market capitalization exceeds $275 billion, its trailing P/E ratio is over 100, and its enterprise value exceeds 55 times EBITDA, suggesting that its stock is trading at a premium, necessitating cautious risk assessment by investors.
- Enhanced Industry Position: Jensen Huang's endorsement elevates Marvell from a speculative AI company to a serious market player, and despite challenges such as high customer concentration and insider selling, its positioning in the AI boom suggests a promising long-term investment outlook.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to fall
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 316.430
Low
85.00
Averages
120.12
High
156.00
Current: 316.430
Low
85.00
Averages
120.12
High
156.00
About MRVL
Marvell Technology, Inc. together with its consolidated subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. It is engaged in the design, development and sale of integrated circuits. Its product offerings include custom application-specific integrated circuits (ASICs), interconnects, ethernet solutions, fiber channel adapters, processors and storage controllers. In addition, it is also developing Ultra Accelerator LinkTM (UALinkTM) switches and ethernet for scale-up networking (ESUN) switches for the emerging scale-out artificial intelligence market. Its solutions integrate multiple analogs, mixed-signal and digital intellectual property components incorporating hardware, firmware and software technologies and its system knowledge to provide its customers with integrated solutions for their end products. It designs and manufactures photonic integrated circuits for ultra-high-bandwidth and low-power applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Marvell Technology's Strong Earnings Propel Stock Surge
- Strong Earnings Report: Marvell Technology reported Q1 fiscal 2027 earnings with revenue of $2.42 billion, a 28% year-over-year increase, and a non-GAAP EPS of $0.80, beating estimates by $0.01, showcasing the company's robust performance in the AI infrastructure sector.
- Stock Surge: At Computex, Nvidia CEO Jensen Huang referred to Marvell as “the next trillion-dollar company,” leading to a 32% single-day stock price increase, reflecting strong market confidence in its future growth potential.
- Optimistic Outlook: Management raised the fiscal 2027 revenue outlook to approximately $11.5 billion, with expectations of reaching $16.5 billion in fiscal 2028, and custom silicon projected to double in fiscal 2028, indicating sustained growth momentum.
- Investor Divergence: Despite the bullish sentiment, analysts are divided on whether new investors should chase the rally, with some cautioning that Marvell's valuation appears stretched, requiring a 44% growth in free cash flow to justify current prices.
See More
Jensen Huang Predicts Marvell to Reach $1 Trillion Market Cap
- Strong Market Reaction: Nvidia CEO Jensen Huang's prediction at Computex that Marvell Technology will reach a $1 trillion market cap led to a 32.5% surge in its stock yesterday, with an additional nearly 5.5% increase today, indicating a strong market response to his comments.
- Elevated Industry Position: With a current market cap of approximately $268 billion, if Huang's prediction comes true, Marvell would experience significant appreciation, further solidifying its critical role in the AI hardware supply chain, particularly in data center and networking infrastructure.
- Investment and Partnership: Nvidia's $2 billion investment in Marvell in March, coupled with a strategic partnership aimed at enhancing customer scalability for AI solutions, not only boosts Marvell's market confidence but also provides Nvidia with stronger technical support.
- Steady Financial Performance: Although Marvell's recent earnings report showed a year-over-year revenue growth of 28% and adjusted earnings growth of 29%, this performance did not trigger significant market movement, reflecting high expectations for AI-related companies in the competitive landscape.
See More
S&P Indices Adjustments Announced
- Index Changes: S&P Dow Jones Indices announced that effective June 22, 2026, Marvell Technology (MRVL) and Flex (FLEX) will be added to the S&P 500, while Pool Corp (POOL) and Campbell's Company (CPB) will be removed, indicating a reassessment of mid-cap and small-cap market representation.
- MidCap Adjustments: The S&P MidCap 400 will see additions of Roku (ROKU), Coeur Mining (CDE), Semtech (SMTC), Sanmina (SANM), and Viavi Solutions (VIAV), while Flex (FLEX), BellRing Brands (BRBR), Coty (COTY), Concentrix (CNXC), and Blackbaud (BLKB) will be removed, reflecting shifts in mid-cap market dynamics.
- SmallCap Changes: The S&P SmallCap 600 will remove Pool (POOL), Campbell's Company (CPB), Coty (COTY), Concentrix (CNXC), Blackbaud (BLKB), Credit Acceptance (CACC), Lazard (LAZ), Eastern Bankshares (EBC), Wesbanco (WSBC), Warby Parker (WRBY), and Nicolet Bankshares (NIC), indicating significant adjustments in small-cap market representation.
- Market Impact Analysis: These index changes not only affect the market performance of the involved companies but may also have profound implications for investors' asset allocation strategies, reflecting the S&P indices' sensitivity and adaptability to market changes.
See More
Jensen Huang Declares Marvell the Next Trillion-Dollar Company
- Strategic Partnership Investment: Nvidia and Marvell announced a strategic partnership in late March, with Nvidia investing $2 billion into Marvell to leverage the NVLink ecosystem for developing semi-custom AI infrastructure, thereby enhancing Marvell's technological advancement and market competitiveness in the AI sector.
- Financial Growth Potential: Marvell's fiscal 2026 revenue approached $8.2 billion, marking a 42% year-over-year increase, with first-quarter fiscal 2027 revenue hitting $2.4 billion; the company anticipates a 40% growth in data center revenue and a 50% increase in its interconnect business, indicating strong market demand and growth potential.
- Market Valuation Challenges: Although Marvell's market capitalization exceeds $275 billion, its trailing P/E ratio is over 100, and its enterprise value exceeds 55 times EBITDA, suggesting that its stock is trading at a premium, necessitating cautious risk assessment by investors.
- Enhanced Industry Position: Jensen Huang's endorsement elevates Marvell from a speculative AI company to a serious market player, and despite challenges such as high customer concentration and insider selling, its positioning in the AI boom suggests a promising long-term investment outlook.
See More
AI Stocks Face Increased Pullback Risks Amid Rate Hike Fears
- Job Data Impact: U.S. nonfarm payrolls rose by 172,000 in May, significantly exceeding the consensus estimate of 80,000, making it more challenging for the Federal Reserve to justify interest rate cuts, which heightened market fears of rate hikes and led to a broad decline in tech stocks.
- AI Stock Valuation Volatility: The steep run-up in AI stock valuations has made them more susceptible to pullbacks, particularly following the jobs report, as investors reassess future earnings expectations, negatively impacting short-term performance of these stocks.
- Market Reaction: Following the strong jobs report, many tech stocks fell on Friday, especially those related to AI, indicating the market's sensitivity to interest rate movements and prompting investors to reconsider their investment strategies.
- Investor Confidence Shaken: Despite analysts recommending a list of 10 potential stocks that did not include Nvidia, the market's confidence in AI-driven growth was reminded by Alphabet's $80 billion equity offering, highlighting the steep costs and risks associated with AI growth.
See More
Nvidia Invests $2 Billion in Marvell to Accelerate AI Partnership
- Strategic Investment: Nvidia's $2 billion investment in Marvell aims to leverage Marvell's technology to drive innovation in AI infrastructure, which is expected to accelerate Marvell's financial milestones and enhance its market position.
- Market Reaction: Huang's declaration at Computex 2026 that Marvell is the 'next trillion-dollar company' led to a more than 30% surge in Marvell's stock price, reflecting strong market confidence in its future potential.
- Financial Growth: Marvell's fiscal 2026 revenue reached nearly $8.2 billion, a 42% year-over-year increase, with expectations for a 40% growth in data center revenue in fiscal 2027, indicating robust momentum in the AI sector.
- Risk Factors: Despite Marvell's market capitalization of $275 billion, high customer concentration and recent insider selling could pose challenges, necessitating careful evaluation of its long-term investment value.
See More
Marvell Technology's Strong Earnings Propel Stock Surge
- Strong Earnings Report: Marvell Technology reported Q1 fiscal 2027 earnings with revenue of $2.42 billion, a 28% year-over-year increase, and a non-GAAP EPS of $0.80, beating estimates by $0.01, showcasing the company's robust performance in the AI infrastructure sector.
- Stock Surge: At Computex, Nvidia CEO Jensen Huang referred to Marvell as “the next trillion-dollar company,” leading to a 32% single-day stock price increase, reflecting strong market confidence in its future growth potential.
- Optimistic Outlook: Management raised the fiscal 2027 revenue outlook to approximately $11.5 billion, with expectations of reaching $16.5 billion in fiscal 2028, and custom silicon projected to double in fiscal 2028, indicating sustained growth momentum.
- Investor Divergence: Despite the bullish sentiment, analysts are divided on whether new investors should chase the rally, with some cautioning that Marvell's valuation appears stretched, requiring a 44% growth in free cash flow to justify current prices.
See More
Jensen Huang Predicts Marvell to Reach $1 Trillion Market Cap
- Strong Market Reaction: Nvidia CEO Jensen Huang's prediction at Computex that Marvell Technology will reach a $1 trillion market cap led to a 32.5% surge in its stock yesterday, with an additional nearly 5.5% increase today, indicating a strong market response to his comments.
- Elevated Industry Position: With a current market cap of approximately $268 billion, if Huang's prediction comes true, Marvell would experience significant appreciation, further solidifying its critical role in the AI hardware supply chain, particularly in data center and networking infrastructure.
- Investment and Partnership: Nvidia's $2 billion investment in Marvell in March, coupled with a strategic partnership aimed at enhancing customer scalability for AI solutions, not only boosts Marvell's market confidence but also provides Nvidia with stronger technical support.
- Steady Financial Performance: Although Marvell's recent earnings report showed a year-over-year revenue growth of 28% and adjusted earnings growth of 29%, this performance did not trigger significant market movement, reflecting high expectations for AI-related companies in the competitive landscape.
See More
S&P Indices Adjustments Announced
- Index Changes: S&P Dow Jones Indices announced that effective June 22, 2026, Marvell Technology (MRVL) and Flex (FLEX) will be added to the S&P 500, while Pool Corp (POOL) and Campbell's Company (CPB) will be removed, indicating a reassessment of mid-cap and small-cap market representation.
- MidCap Adjustments: The S&P MidCap 400 will see additions of Roku (ROKU), Coeur Mining (CDE), Semtech (SMTC), Sanmina (SANM), and Viavi Solutions (VIAV), while Flex (FLEX), BellRing Brands (BRBR), Coty (COTY), Concentrix (CNXC), and Blackbaud (BLKB) will be removed, reflecting shifts in mid-cap market dynamics.
- SmallCap Changes: The S&P SmallCap 600 will remove Pool (POOL), Campbell's Company (CPB), Coty (COTY), Concentrix (CNXC), Blackbaud (BLKB), Credit Acceptance (CACC), Lazard (LAZ), Eastern Bankshares (EBC), Wesbanco (WSBC), Warby Parker (WRBY), and Nicolet Bankshares (NIC), indicating significant adjustments in small-cap market representation.
- Market Impact Analysis: These index changes not only affect the market performance of the involved companies but may also have profound implications for investors' asset allocation strategies, reflecting the S&P indices' sensitivity and adaptability to market changes.
See More
Jensen Huang Declares Marvell the Next Trillion-Dollar Company
- Strategic Partnership Investment: Nvidia and Marvell announced a strategic partnership in late March, with Nvidia investing $2 billion into Marvell to leverage the NVLink ecosystem for developing semi-custom AI infrastructure, thereby enhancing Marvell's technological advancement and market competitiveness in the AI sector.
- Financial Growth Potential: Marvell's fiscal 2026 revenue approached $8.2 billion, marking a 42% year-over-year increase, with first-quarter fiscal 2027 revenue hitting $2.4 billion; the company anticipates a 40% growth in data center revenue and a 50% increase in its interconnect business, indicating strong market demand and growth potential.
- Market Valuation Challenges: Although Marvell's market capitalization exceeds $275 billion, its trailing P/E ratio is over 100, and its enterprise value exceeds 55 times EBITDA, suggesting that its stock is trading at a premium, necessitating cautious risk assessment by investors.
- Enhanced Industry Position: Jensen Huang's endorsement elevates Marvell from a speculative AI company to a serious market player, and despite challenges such as high customer concentration and insider selling, its positioning in the AI boom suggests a promising long-term investment outlook.
See More
AI Stocks Face Increased Pullback Risks Amid Rate Hike Fears
- Job Data Impact: U.S. nonfarm payrolls rose by 172,000 in May, significantly exceeding the consensus estimate of 80,000, making it more challenging for the Federal Reserve to justify interest rate cuts, which heightened market fears of rate hikes and led to a broad decline in tech stocks.
- AI Stock Valuation Volatility: The steep run-up in AI stock valuations has made them more susceptible to pullbacks, particularly following the jobs report, as investors reassess future earnings expectations, negatively impacting short-term performance of these stocks.
- Market Reaction: Following the strong jobs report, many tech stocks fell on Friday, especially those related to AI, indicating the market's sensitivity to interest rate movements and prompting investors to reconsider their investment strategies.
- Investor Confidence Shaken: Despite analysts recommending a list of 10 potential stocks that did not include Nvidia, the market's confidence in AI-driven growth was reminded by Alphabet's $80 billion equity offering, highlighting the steep costs and risks associated with AI growth.
See More
Nvidia Invests $2 Billion in Marvell to Accelerate AI Partnership
- Strategic Investment: Nvidia's $2 billion investment in Marvell aims to leverage Marvell's technology to drive innovation in AI infrastructure, which is expected to accelerate Marvell's financial milestones and enhance its market position.
- Market Reaction: Huang's declaration at Computex 2026 that Marvell is the 'next trillion-dollar company' led to a more than 30% surge in Marvell's stock price, reflecting strong market confidence in its future potential.
- Financial Growth: Marvell's fiscal 2026 revenue reached nearly $8.2 billion, a 42% year-over-year increase, with expectations for a 40% growth in data center revenue in fiscal 2027, indicating robust momentum in the AI sector.
- Risk Factors: Despite Marvell's market capitalization of $275 billion, high customer concentration and recent insider selling could pose challenges, necessitating careful evaluation of its long-term investment value.
See More
