((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) (Updated to add important milestone regarding title)
Shares of Marvell Technology (MRVL.O) jumped more than 25% on Tuesday after Jensen Huang, chief executive of Nvidia (NVDA.O), called the chipmaker the next “trillion dollar company.”
Mr. Huang and Marvell CEO Matt Murphy were speaking at Computex Week in Taipei on Tuesday.
Shares of Marvel closed up 22.5% at a record high, giving the company a market capitalization of $234 billion, well below the $1 trillion mark mentioned by Mr. Huang.
Nvidia invested $2 billion in Marvell earlier this year as part of its efforts to make it easier for customers to use custom artificial intelligence chips that the small company designs with Nvidia’s networking equipment and central processors.
Marvell forecast last week that its custom chip business would surpass $10 billion in revenue in fiscal 2029, as cloud companies expand their AI data centers.
The rise of AI has driven demand for specialized chips that, combined with Marvell’s interconnect technologies, play a critical role in cutting-edge data centers by connecting thousands of processors used to train and operate AI models.
Marvell appeared poised to add more than $45 billion to its market capitalization if gains continued. Shares of Nvidia NVDA.O rose 3.2%.
