Will This Jensen Huang-Endorsed AI Chip Stock Be the Next Trillion-Dollar Company?

"The next trillion-dollar company, ladies and gentlemen," said Nvidia CEO Jensen Huang of Marvell Technology (NASDAQ: MRVL), turning to Marvell's CEO during an onstage appearance at the Computex conference in Taipei last week. The endorsement, from arguably the most influential figure in artificial intelligence (AI), set off one of the most dramatic stretches the chip designer's stock has ever seen.

The day after Huang's remark, Marvell shares jumped about 32% (the biggest one-day gain in the company's history) and climbed to a record high by Thursday. Then the mood flipped. In a sectorwide sell-off on Friday, the stock plunged about 16% -- the worst drop among large chip names. On Monday, it bounced back toward $300 after news that Marvell will join the S&P 500 later this month. But it's falling sharply again on Tuesday, down more than 11% as of this writing. Even after this whipsawing, the stock has more than tripled in 2026 alone, leaving its gain far ahead of the S&P 500.

So, could Marvell's market capitalization really soar from $225 billion to $1 trillion? And is the growth stock a buy after such a wild week?

Image source: Getty Images.

The business behind the hype

Marvell designs the chips that move data around inside data centers -- the high-speed optical links and switches that let thousands of AI chips share information quickly, along with custom processors built for individual cloud customers. And that work for cloud customers has become the company's main story recently. Marvell's data center revenue made up 40% of total sales in fiscal 2024, 72% in fiscal 2025, and 74% in fiscal 2026 -- and it reached 76% in the fiscal first quarter of 2027 (the period ended May 2, 2026).

And the growth underneath this shift has been incredibly strong. For fiscal 2026, Marvell reported record revenue of $8.2 billion, up 42% year over year, with data center sales alone climbing about 47% to $6.1 billion. The momentum carried into the most recent quarter. Fiscal Q1 revenue rose 28% to a record $2.42 billion, and data center revenue grew 27% to $1.83 billion.

Connectivity -- the piece the Nvidia CEO singled out -- is the largest part of that data center business, and it is gaining speed.

"Demand for our interconnect products continues to accelerate," said Marvell Chairman and CEO Matt Murphy during the company's fiscal first-quarter earnings call, as the company raised its expected growth for that business to more than 70% in fiscal 2027.

The CEO also pointed to a deepening tie-up with Nvidia across custom silicon and optical networking.

A long way from $1 trillion

But the gap between Marvell and the trillion-dollar club remains massive. The company's market value sits around $225 billion as of this writing. And even at last week's record high, it was under $280 billion. To reach $1 trillion, the stock would need to more than quadruple from here -- something that would likely require years of the kind of growth the company is guiding toward, with little going wrong along the way.

And a lot is already built into the stock's valuation. Even on its adjusted profits, the stock trades at a price-to-earnings ratio not too far from 90.

There are company-specific risks, too. With about three-quarters of revenue now tied to data centers, Marvell's fortunes rest heavily on a small group of large cloud customers and their willingness to keep spending on custom AI chips. If that spending slows -- or if a major customer designs a future chip without Marvell technology in it -- the growth story could cool quickly.

Huang may well be among the most credible voices in AI. But a prediction, even from a CEO with his track record, isn't a guarantee. Marvell's business is performing well, and the company does seem to play a key role in connectivity in the AI era. Yet the stock already prices in enormous success, and the past week showed how quickly sentiment can turn. For now, investors may want to tread carefully. This looks like a high-risk stock -- one where the story, however compelling, has gotten well ahead of the price.

Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology and Nvidia. The Motley Fool has a disclosure policy.