Nvidia’s Jensen Huang Predicts Marvell Could Hit $1 Trillion

Nvidia CEO Jensen Huang predicted Marvell Technology could reach a $1 trillion market valuation after Nvidia invested $2 billion earlier this year, a rise of about 410% from current levels.

Marvell shares traded near record highs around $225 after climbing roughly 370% from their low in April last year. The rally accelerated after Marvell reported first-quarter results and after Nvidia disclosed its investment.

Marvell reported first-quarter revenue of $2.4 billion, a 28% increase year over year. Data center revenue rose 27% in the quarter. Management projected second-quarter revenue of $2.7 billion, a 12% increase from the first quarter and 35% year over year, and guided to roughly 40% full-year revenue growth with data center revenue expected to grow about 70% year over year.

Marvell completed a $3.25 billion acquisition of Celestial AI, integrating the startup’s Photonic Fabric optical interconnect technology into its data center offerings. The company also acquired Polariton to expand its optical technology portfolio. Company management has said custom chips and optical interconnects are driving its data center business.

On valuation metrics, Marvell trades at a GAAP price-to-earnings ratio near 114 and a non-GAAP P/E around 50, higher than the semiconductor sector median. The company’s Rule of 40, combining a 29% net profit margin with the expected 40% revenue growth, is about 69%. Its PEG ratio is near 1.22.

Technically, weekly charts show a bullish engulfing pattern and the stock sits well above major moving averages, with the 100-week moving average near $94. Momentum indicators are elevated, with the Relative Strength Index around 91 and the Stochastic Oscillator at high levels. Some market participants note the elevated indicators increase the risk of near-term profit-taking and possible pullbacks toward $200 or below.

Nvidia’s investment and Huang’s projection have focused attention on Marvell as a supplier for AI-related data center infrastructure, particularly in custom silicon and optical interconnects. The company’s recent results, acquisitions and guidance outline the factors cited by investors for the current market interest.