Marvell Technology Rises Over 26% to New High. Breaking AI’s Third “Connectivity” Bottleneck, Dual Engines Reconstruct Valuation Logic.

TradingKey - On June 2, Marvell Technology ( MRVL) shares hit a high of $277.22, reaching a new all-time high. As of press time, the stock was up 23.65% at $271.33.

On the news front, at the Computex conference in Taipei, Marvell Chairman and CEO Matt Murphy stated in a speech that the development of AI infrastructure exhibits a clear evolutionary path where "bottlenecks appear and are overcome in succession."

The first phase was the computing power bottleneck, led by NVIDIA, which consequently became the world's first company to exceed a $5 trillion market capitalization. The second phase was the memory bottleneck, with three new trillion-dollar market cap companies recently emerging in the memory sector. The industry is currently in the third phase, where connectivity has become the core bottleneck restricting the further expansion of AI infrastructure.

This follows the classic cyclical investment logic driven by supply-demand imbalances, centered on capturing structural gaps created by "supply rigidity and explosive demand." Simply put, when a shortage occurs in a specific segment of the industry that cannot be quickly filled, product prices experience non-linear increases, directly driving explosive profit growth for related companies, which eventually translates into stock price gains.

Murphy noted that the world's top hyperscale cloud service providers are re-planning their overall network architectures, realizing that the expansion of AI infrastructure has become the primary connectivity challenge.

NVIDIA CEO Jensen Huang, appearing as a special guest, further explained that current AI technology is accelerating its evolution toward an "Agent" computing model. This new computing paradigm requires breaking down complex tasks into multiple sub-modules and deploying them across hyperscale computing clusters for collaborative operation. When a computing problem is decomposed into multiple parts and distributed throughout a data center, connectivity becomes indispensable.

Jensen Huang also provided a judgment on the timing of the transition from copper cabling to optical fiber: "You use optics wherever you must, you use copper wherever you can."

He further explained that copper cabling has inherent physical limits in bandwidth and transmission distance, but in scenarios where these boundaries are not crossed, copper remains a simple, low-cost, and highly practical choice; only when transmission requirements surpass this critical point will fiber optics take over to address high-bandwidth expansion needs across racks, within data centers, and between data centers over long distances.

He predicted that over the next 5 to 10 years, data center connectivity will still rely heavily on copper, while also utilizing massive amounts of optical components. These data centers are now the core infrastructure of the global digital economy.

Currently, the market's perception of Marvell Technology's value has undergone a reconfiguration, shifting from being categorized as a general data center AI chipmaker to a dual-engine asset that captures the wave of custom XPU/ASIC development by cloud giants while also benefiting from optical interconnect upgrades and silicon photonics dividends.