Jensen Huang Endorsement, Marvell Technology to Become Next Trillion-Dollar Chip Stock.

TradingKey - During the Asian trading session on June 2, Marvell Technology (MRVL.US) surged in U.S. overnight trading, with gains at one point exceeding 12%. In terms of market cap, Marvell is currently valued at approximately $181 billion, still quite far from the trillion-dollar mark.

Nvidia CEO Jensen Huang publicly stated at Computex that Marvell Technology will become the next trillion-dollar company, noting that both companies are strengthening their partnership to jointly expand the critical networking and connectivity infrastructure required for next-generation AI data centers.

Huang also explicitly stated: "The AI industry has entered a stage of full commercialization; computing power is revenue, and computing power is profit."

As AI clusters scale from 10,000 to 100,000 cards, data transmission efficiency has become the key bottleneck constraining overall computing power; as the second-largest vendor of networking and optical interconnect solutions, Marvell is thus becoming a strategic node in the AI infrastructure arms race.

Year-to-date, the company's stock price has climbed approximately 130%, with a 254.3% gain over the past year. The data center business now accounts for about 75% of its total revenue, up from just 50% two years ago.

On the news front, Nvidia has made a $2 billion strategic investment in Marvell Technology; the two parties are engaging in deep collaboration via the NVLink Fusion platform to jointly develop silicon photonics technology and advance next-generation AI infrastructure.

Marvell Technology Q1 Earnings Performance

Marvell Technology's Q1 earnings report showed that first-quarter net revenue reached a record high of $2.418 billion, up 28% year-over-year, with a GAAP gross margin of 52.1% and a non-GAAP gross margin of 58.9%; diluted GAAP EPS was $0.04, and non-GAAP EPS was $0.80.

Furthermore, cash flow from operating activities for the first quarter hit a record high of $638.8 million.

Overall, Jensen Huang's "trillion-dollar" prediction is essentially an optimistic assessment of the long-term structural demand for AI infrastructure.