Move Over Marvell, Here Are the Next 2 $1 Trillion Semiconductor Stocks

Nvidia CEO Jensen Huang made waves recently when he called Marvell Technology (NASDAQ: MRVL) the next trillion-dollar semiconductor stock. Nvidia took a $2 billion stake in Marvell earlier this year and formed a partnership to make it easier for Marvell's custom chip customers, such as Amazon, to integrate their chips into Nvidia's ecosystem via NVLink Fusion.

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Marvell has a strong custom chip business, with Amazon as its lead customer. However, there is wide speculation that it is set to lose the lead role in future iterations of its Trainium chips to Taiwanese semiconductor company AIchip. It's also helping Microsoft with its new Maia artificial intelligence (AI) accelerator. But the most exciting part of its business is optical interconnects, which are replacing copper wires within data centers and becoming more important as AI data centers need faster connectivity.

Marvell is growing quickly and expects revenue to climb 40% this year to $11.5 billion, with interconnect revenue soaring 70%. However, with a market cap below $250 billion and a frothy forward P/E of nearly 70 times, it will need to see some tremendous growth to hit a $1 trillion market cap in the coming years.

Let's look at two semiconductor stocks that have a much more realistic chance of getting there before Marvell.

1. AMD

With a market cap of over $865 billion, Advanced Micro Devices (NASDAQ: AMD) is only about a 15.6% move upward from becoming a $1 trillion stock, and it looks like it has plenty of room to run.

AMD is riding two powerful market trends right now: inference and agentic AI. While the company has always taken a back seat to Nvidia with AI model training, its graphics processing units (GPUs) are well-suited for inference. Inference tends to be much more constrained by memory than compute power, and AMD's chiplet design lets it pack in more memory in its chips.

Meanwhile, AMD just announced the acquisition of AI memory-optimization company MEXT, which offers technology that can offload data to idle flash memory and then transfer it back to DRAM (dynamic random-access memory) before it's needed. This effectively increases memory capacity while dramatically lowering memory costs.

At the same time, AMD also has a significant opportunity in agentic AI, which will require more central processing units (CPUs) to handle the sequential reasoning required by AI agents. With the rise of agentic AI, the GPU-to-CPU ratio within data centers is expected to go from 8:1 for training to 1:1 for servers dedicated to AI agents.

AMD is a leader in the data center CPU market, which it sees growing to $120 billion over the next few years. Its new Venice architecture, meanwhile, is specifically designed to handle the high-performance needs of AI agents.

Given the trends AMD is riding, it would not be surprising if the stock reaches a $1 trillion market cap before the end of the year.

2. ASML

Another semiconductor company that looks set to reach a $1 trillion market cap is ASML (NASDAQ: ASML). The semiconductor equipment manufacturer currently has a market cap of around $710 billion, so it's about a 40% move upward to meet this goal.

While it's not a household name, ASML is arguably the most important company in the world. It has a monopoly on extreme ultraviolet lithography (EUV) technology, which foundries like Taiwan Semiconductor Manufacturing use to make advanced chips. Without its systems, there would be no AI boom, or even the smartphone you're holding in your hand.

ASML is currently riding both the AI chip wave and the memory boom, as the big memory makers also use its machines to make high-bandwidth memory (HBM) that needs to be packaged with GPUs and other AI chips to optimize their performance. With capacity for both AI chips and memory increasing, ASML's EUV machines should remain in high demand well into the future. It has also developed a newer technology, High NA (High Numerical Aperture) EUV, which could eventually become the industry standard.

Given how essential ASML is in the semiconductor industry and the trends working in its favor, this is a company that will likely hit a $1 trillion market cap in the coming years.

Geoffrey Seiler has positions in Advanced Micro Devices and Amazon. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Amazon, Marvell Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.