Marvell Technology stock jumps on Jensen Huang’s trillion-dollar forecast

Nvidia’s CEO Jensen Huang has touted the chip designer as the next trillion-dollar firm, and its shares rose sharply in premarket trading Tuesday.

Marvel TechnologyIt was bullish after Huang, a semiconductor firm that designs chips for data centers, announced the company’s efforts to build artificial intelligence infrastructure while appearing on stage with Marvell CEO Matthew Murphy at Computex Week in Taipei on Tuesday.

The stock was last trading up 25% as of 6:05 a.m. ET and is up more than 158% since the beginning of the year.

Marvell is poised to become “the next trillion-dollar company,” Huang said, adding that the company’s networking and connectivity chips are essential for data centers where computing tasks are spread across thousands of connected chips that need to share data quickly.

“When you take a computing problem and break it into many parts and distribute it across the entire data center, what is required is connectivity,” Huang said. “That’s why Matt is so good. That’s why Marvel is so important.”

“We’ve distributed and disaggregated computers to run on these huge clusters, so that we can take the total amount of compute, the total memory, the total bandwidth we have, and connectivity is what makes this possible,” the Nvidia CEO added.

Marvell specializes in the design of high-performance chips used in global data infrastructure, including cloud computing, artificial intelligence, enterprise networking, 5G carrier networks and automotive systems.

Nvidia recently committed to investing $2 billion in Marvell. Nvidia is also investing billions of dollars in other companies developing photonic technology that uses light to transfer data. This process is said to be more efficient than the current method of transferring data using electricity.