Nvidia (NASDAQ:NVDA) CEO Jensen Huang isn’t afraid to make bold statements, and his bravado and vision have served the company well. Nvidia has become the largest publicly traded company in the world by market cap, with a valuation exceeding $5 trillion.
Obviously, Huang knows what it takes to get a company to the $1 trillion mark, and now he’s identified a fellow chipmaker with a market cap of less than $200 billion to hit that mark.
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Here’s what he said about Marvell Technology (NASDAQ:MRVL).
Image source: The Motley Fool.
‘The next trillion-dollar company’
Huang gave Marvell his endorsement on Tuesday at the Computex trade show in Taipei, as he joined Marvell CEO Matthew Murphy on stage. “The next trillion-dollar company, ladies and gentlemen,” Huang said.
At the time, Marvell had a market cap of $191 billion, but Huang’s bold comment had an immediate impact. At the time of this writing, Marvell stock was up 27% in morning trading, and the company’s market cap has jumped to $234 billion.
Marvell is known for its high-performance semiconductor products, including data center switches that can route large volumes of traffic. Huang told the audience in Taipei that Marvell’s products are essential as computing tasks are spread across thousands of chips in data centers. “That’s the reason why Matt’s doing so well. That’s the reason why Marvell is so essential,” Huang said.
Huang’s interest in Marvell is more than just as a spectator. In March, Nvidia announced plans to invest $2 billion in Marvell and to deepen its partnership with the company to develop silicon photonics and other AI-centric telecommunications infrastructure hardware. Marvell stock jumped 13% the day that news broke, but Huang’s statement at the Computex trade show is carrying even more weight with investors.
Marvell’s path to $1 trillion
Obviously, Marvell isn’t going to get to $1 trillion overnight. Only 14 companies are currently at that level, and Eli Lilly and Walmart have previously topped $1 trillion before falling back. Marvell’s massive move today puts it at No. 73 on the ranking of companies by market cap, moving 43 spots higher in just a matter of hours.
But at this writing, it would still need to gain another 327% to reach $1 trillion. That won’t be easy to do. It even took Nvidia a long time. Huang’s company had a market cap of $323 billion at the beginning of 2020, but it didn’t achieve $1 trillion until May 30, 2023, more than three years later.
