Marvell Technology closed at $290.31 on June 2, up 32.3% for the day. This surge followed Nvidia CEO Jensen Huang's public remarks at Computex Taipei. The market then shifted its focus back to AI data center infrastructure providers, rather than just GPU manufacturers themselves.
Statements made at Computex Taipei boost stock prices
During Computex 2026, Jensen Huang, speaking alongside Marvell CEO Matt Murphy, stated that Marvell has the potential to become the next trillion-dollar company. He noted that large AI clusters require thousands of chips to work together, making the speed of data exchange between chips increasingly important, and Marvell's networking and interconnect products are positioned at this crucial juncture.
Driven by this, Marvell became one of the top gainers among large-cap tech stocks that day. Based on market data cited during the trading session, the company's market capitalization rose to approximately $249 billion, a significant increase from its previous levels.
The market is shifting its focus to the interconnect and optical module supply chain.
As generative AI models continue to expand, market focus is shifting from single computing chips to switching chips, network interconnects, optical connections, and server-to-server data transmission devices. Marvell's business covers cloud computing, enterprise networking, 5G, and automotive chips, but recently it has been receiving more attention for its AI interconnects, custom ASICs, and optical connectivity products.
The article mentions that Nvidia has also invested $2 billion in Marvell. The collaboration focuses on semi-custom AI infrastructure and data center technology, allowing customers to combine components from both companies when developing specialized AI systems.
Data center business boosts growth expectations
Marvell recently reported first-quarter revenue of $2.4 billion, exceeding analysts' expectations. The company also provided guidance for continued growth, stating that its data center business remains one of the main drivers of its current revenue outlook.
The company currently projects that its AI interconnect business revenue will grow by more than 70% in fiscal year 2027, higher than the previous forecast of approximately 50%. Optical networking is another key area of market focus. Large AI data centers require faster data transmission, and optical transceiver modules can reduce transmission bottlenecks over longer distances; Marvell provides the necessary digital signal processors for this purpose.
The article cites analysts who say Marvell's optical networking revenue could grow by as much as 90% this year and next. The company is also expanding this segment through acquisitions, including the $3.25 billion acquisition of Celestial AI and the $540 million acquisition of XConn.
The future depends on whether AI capital expenditure can continue.
In addition to optical connectivity, Marvell's custom ASIC business is also an important part of its AI story. These chips are designed for specific customer needs, primarily serving cloud computing and infrastructure companies looking to optimize performance for AI workloads.
This surge also indicates that the market is looking for beneficiaries of AI infrastructure beyond Nvidia. However, whether Marvell's valuation can hold steady depends on its AI capital expenditure, the pace of data center expansion, and whether revenue growth can keep pace with the stock price increase.
