June 2 (Reuters) – Marvell Technology’s shares surged more than 24% in premarket trading on Tuesday after Nvidia CEO Jensen Huang called the chipmaker the next “trillion-dollar company.”
Huang and Marvell CEO Matt Murphy were speaking at the Computex week in Taipei on Tuesday.
Marvell’s market capitalization, as of last close, was just short of $192 billion, far below the one-trillion mark that Huang touted.
Earlier this year, Nvidia invested $2 billion in Marvell, as part of its efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia’s networking gear and central processors.
Marvell last week forecast that its custom chips business would surpass $10 billion in revenue in fiscal 2029, as cloud companies expand AI data centers.
The surge in AI adoption has fueled demand for specialized chips, which along with Marvell’s interconnect technologies, play a critical role in advanced data centers by linking thousands of processors used to train and run AI models.
Marvell shares were last up 24.7% at $273.70, set to add more than $47.2 billion in market capitalization if gains hold. Nvidia shares also gained 1.8%.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Subhranshu Sahu, Janane Venkatraman and Shinjini Ganguli)