Marvell Continues to Surge in Wednesday Pre-Market. Gets Jensen Huang’s “Trillion Market Cap” Endorsement, Stifel Raises Price Target to $321

TradingKey - Marvell ( MRVL) shares extended their strong rally on Wednesday, rising as much as 13% in pre-market trading.

When Nvidia ( NVDA) CEO Jensen Huang endorsed Marvell as the "next trillion-dollar company" at the Computex 2026 exhibition in Taipei, the market erupted. The words of this tech industry "prophet" acted like a massive boulder dropped into a lake, creating a huge ripple effect—Marvell's stock price surged 32.5% on Tuesday, marking its largest single-day gain in company history and boosting its market capitalization by $62.4 billion overnight.

Three months ago, Nvidia announced a $2 billion strategic investment in Marvell, entering into a deep partnership to co-develop silicon photonics technology and AI telecommunications infrastructure. At the time, Huang stated bluntly that "Marvell is a fantastic investment." Now, by repositioning it as the "next trillion-dollar company," he has provided the clearest possible endorsement of their collaborative future.

He explicitly noted at the exhibition that as AI transitions from the training phase to the practical application phase, data center architectures are undergoing fundamental changes. In the past, computing power and memory were the primary bottlenecks for AI development, leading to Nvidia GPUs and storage giants like Samsung and Micron ( MU) subsequently breaking through trillion-dollar market valuations. However, now that these bottlenecks are being resolved, "connectivity" is becoming the critical factor determining AI system performance.

Huang stated that practical AI has arrived and token production has become profitable; everyone wants to produce more tokens, which is the root cause of the surging demand for Marvell.

As a leading global provider of semiconductor and network communication technology, Marvell focuses on providing high-performance chip solutions for data centers, cloud computing, AI, and enterprise networks. Its product portfolio covers the entire value chain from switching chips and optical interconnect chips to custom ASICs, maintaining an industry-leading position in fields such as high-performance analog, optical DSPs, and silicon photonics.

In May, Marvell released its first-quarter earnings for fiscal year 2027, reporting record revenue of $2.418 billion, a 28% year-over-year increase, with the data center business contributing 75% of that total. The company also raised its guidance, projecting fiscal 2027 revenue to reach $11.5 billion and fiscal 2028 revenue to climb further to $16.5 billion. Jensen Huang’s projected trillion-dollar valuation is roughly four times its current market cap, implying that Marvell must maintain an average annual growth rate of over 40% for several years.

From the perspective of industry trends, Marvell's rise is perfectly timed. As AI model sizes continue to expand and application scenarios grow more diverse, data transmission within data centers is increasing exponentially, making it difficult for traditional network architectures to meet demand.

According to market research forecasts, the global AI data center networking market will maintain a compound annual growth rate of over 30% over the next five years, reaching $100 billion by 2030. With its technical advantages in connectivity, Marvell is poised to capture a significant share of this market.

At the same time, the market is brimming with confidence in Marvell's growth potential. Stifel analyst Tore Svanberg raised Marvell's 12-month price target from $230 to $321 while reiterating a "Buy" rating.

He believes that Marvell's keynote speech at the exhibition, titled "The Future of AI Scaling Depends on Connectivity," serves as strong validation of its long-term investment logic. Based on a valuation of 55 times fiscal 2027 earnings, Stifel believes there is still significant upside for Marvell's current market capitalization.