Marvell Technology (NASDAQ:MRVL) shares soared more than 22% in premarket trading on Tuesday after Nvidia Chief Executive Jensen Huang praised the semiconductor company and described it as the next “trillion-dollar company.”
The remarks added to growing investor enthusiasm surrounding Marvell’s role in the rapidly expanding artificial intelligence infrastructure market.
AI Demand Continues to Strengthen Growth Outlook
The rally follows Marvell’s recent projection that its custom chip business could generate more than $10 billion in annual revenue by fiscal 2029.
The company expects growth to be fueled by cloud service providers expanding AI-focused data center capacity and increasing their use of custom-designed semiconductors as they seek alternatives to standard off-the-shelf processors.
Marvell has positioned itself as a key supplier in this trend, helping customers develop specialized chips tailored to specific AI workloads.
Custom Silicon and Networking Technologies Drive Opportunity
Management has pointed to accelerating AI adoption as a major catalyst for demand across several product categories.
In addition to custom processors, Marvell supplies advanced interconnect technologies that enable communication between large numbers of chips inside modern data centers.
These networking components are critical for linking the massive processor clusters used to train and deploy increasingly sophisticated artificial intelligence models.
As AI infrastructure becomes more complex and computationally intensive, demand for these technologies is expected to continue growing.
Revenue Forecast Raised
Reflecting confidence in its long-term growth prospects, Marvell recently increased its fiscal 2028 revenue target.
The company now expects annual revenue of approximately $16.5 billion, compared with its previous forecast of $15 billion.
The revised outlook highlights management’s belief that investment in AI infrastructure will remain a powerful growth driver over the coming years.
Investor optimism surrounding those opportunities has already translated into substantial share-price gains, with Marvell stock more than doubling since the beginning of the year.
Huang and Murphy Share the Stage at Computex
The comments from Huang were delivered during Computex in Taipei, where he appeared alongside Marvell Chief Executive Matt Murphy.
The appearance brought additional attention to Marvell as investors looked for companies positioned to benefit from the next phase of AI infrastructure spending.
Computex has become a key venue for major technology companies to showcase their latest developments in artificial intelligence, semiconductors and computing systems.
Nvidia Expands Push Into AI-Powered PCs
During the event, Nvidia also introduced a new processor designed to bring artificial intelligence capabilities directly to laptop and desktop computers.
The product is intended to compete with offerings from Advanced Micro Devices, Intel and Apple as the race to develop AI-enabled personal computing devices intensifies.
Huang said the new RTX Spark PC chip is part of a broader effort between Nvidia and Microsoft to transform the personal computer experience for the AI era.
According to Huang, the initiative reflects three years of collaboration between the two companies as they work to “reinvent the PC” through artificial intelligence technologies.
With investor interest in AI infrastructure continuing to grow and leading industry figures expressing confidence in its prospects, Marvell remains one of the semiconductor companies most closely watched by the market as demand for custom chips and data center technologies accelerates.