Huang Praise, S&P Talk Send Marvell Up 32%, MRVU Surges

Marvell Technology shares rose 32% on Monday after Nvidia Chief Executive Jensen Huang praised the chipmaker and suggested it could reach a $1 trillion market value. The move pushed the Direxion Daily MRVL Bull 2X ETF (MRVU) higher; MRVU seeks to deliver twice Marvell’s daily return.

Market attention focused on Marvell’s data center interconnect modules, components that move data between servers and networking equipment in AI data centers and help address bandwidth limits.

Nvidia holds an investment in Marvell, a factor some market participants referenced while evaluating Huang’s remarks.

At the market value recorded on June 2, Marvell would need to rise more than threefold to reach a $1 trillion valuation.

Morningstar analyst Dave Sekera rated Marvell four stars and noted the stock traded about 13% below his estimate of intrinsic value, calling it attractive on a risk-adjusted basis.

Marvell executives pointed to accelerating demand in the company’s data center business. Chairman and CEO Matt Murphy reported the company now expects data center revenue to grow roughly 50% in the fiscal year and forecast the interconnect business to expand more than 70% year over year, above prior guidance.

The S&P 500 regular rebalance is scheduled for June 19. The S&P Dow Jones Indices selection committee can exercise discretion when adding eligible companies, so inclusion is not guaranteed.

Leveraged ETFs such as MRVU aim to amplify short-term moves and can produce larger gains or losses over short holding periods. Traders observed MRVU amplified intraday gains when Marvell spiked and would magnify losses if the stock reverses.

Market participants said upcoming earnings details, trends in data center demand, and any decision by the S&P selection committee will be watched as potential catalysts for further price and trading activity.