Jensen Huang Just Said This AI Chip Stock Could Be the Next $1 Trillion Company (Hint: It's Not AMD or Sandisk)

Jensen Huang is one of those rare CEOs who not only influences how investors feel about his company, but his words have a ripple effect throughout the market. On June 2, while on stage at Computex 2026, the Nvidia (NASDAQ: NVDA) CEO declared Marvell (NASDAQ: MRVL) "the next trillion-dollar company." Investors took his comments seriously, and Marvell's stock soared.

So why did Huang pick Marvell as the next trillion-dollar company? His comments seem to be based on the promise of a long-term partnership and are backed by impressive, growing numbers. Let's have a look.

Nvidia believes in Marvell

Back in late March, Nvidia and Marvell announced a strategic partnership that included a $2 billion investment from Nvidia into the semiconductor company. According to the press release, the partnership builds on Nvidia's NVLink Fusion, a rack-scale platform that enables customers to develop semi-custom AI infrastructure using its NVLink ecosystem.

The two AI innovators will also partner to transform networks, develop optical interconnect solutions, and advance silicon photonics technology.

The path to $1 trillion is long

Marvell's growth suggests it could indeed join the trillion-dollar club, but there's still significant work to be done to achieve the milestone. Marvell's current market capitalization is impressive, but still just north of $275 billion as of this writing. That's a long way from $1 trillion.

The stock is already trading at a premium, too. As of June 3, the company's trailing P/E ratio is slightly over 100, with a forward P/E of 72. Marvell's enterprise value exceeds 55 times EBITDA. As of this writing, Marvell stock has skyrocketed 274% year to date.

Image source: The Motley Fool.

The company's full-year fiscal 2026 revenue grew to just under $8.2 billion, a 42% year-over-year increase. For the first quarter of fiscal 2027, revenue jumped again to $2.4 billion. Marvell's management anticipates its data center revenue growing by 40% and its interconnect business by 50% this current fiscal year. The partnership with Nvidia should help accelerate the company's financial milestones.

There are other risks to consider before investing in Marvell. Heavy customer concentration and recent insider selling could pose potential challenges.

Marvell's outlook is promising

Ultimately, the Nvidia partnership signifies more than just credibility and confidence in Marvell. It means the company is one of the best-positioned in the AI boom. The case for buying and holding Marvell for the long-term is quite strong. The endorsement from Jensen Huang is important as it moves Marvell from a speculative AI company to a serious player.

Marvell may not be the next trillion-dollar company, but it has set itself on a trajectory to reach that elite level over the next several years.

Catie Hogan has 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.