"Marvell (MRVL) surged 32% on Tuesday after Nvidia CEO Jensen Huang called it the ‘next trillion-dollar company’ at Computex, sending Broadcom (AVGO) and Hewlett Packard Enterprise (HPE) to 52-week highs amid AI sector optimism. The rally followed Huang’s onstage remark, with MRVL’s market cap nearing $254 billion, while AVGO hit $488.82 and HPE climbed 19%." Source 1 Source 2 Source 3
Jensen Huang’s Computex 2026 Endorsement and Marvell’s Immediate Stock Surge
Nvidia CEO Jensen Huang’s onstage declaration at Computex 2026 that Marvell Technology (MRVL) was the "next trillion-dollar company" ignited a firestorm in financial markets. The comment, delivered alongside MRVL CEO Matt Murphy, sent shares of the custom chipmaker soaring to an intraday high of $291.30, a 32% jump from the previous day’s close. "Ladies and gentlemen, the next trillion-dollar company," Huang said, per Source 2, a statement that immediately resonated with investors.
This wasn’t the first time Huang’s remarks have moved markets. In January 2025, quantum computing stocks tumbled after his cautionary comments on the technology’s timeline, though he later revised his stance. The contrast highlights the dual-edged nature of executive commentary in AI-driven sectors.
Marvell’s market cap, which stood at $254 billion on Tuesday, remains far from the $1 trillion threshold, a milestone recently achieved by memory giants like SK Hynix and Samsung. Yet the surge underscores the growing appetite for AI infrastructure plays, with MRVL’s data center business accounting for 76% of Q1 revenue.
Broader AI Sector Rally: Broadcom and HPE’s Record Highs
The ripple effects of Huang’s endorsement were immediate. Broadcom (AVGO) hit a yearly high of $488.82, driven by anticipation of its Q2 earnings and strategic deals, including a $36 billion AI financing deal involving Anthropic and Google. HPE, meanwhile, surged 19% after analysts upped price targets following strong Q2 results.
For MRVL, the rally was even more dramatic. The company’s stock closed at $291.30, a record intraday high, after Stifel raised its price target to $321 from $230. The firm noted that MRVL’s keynote at Computex 2026, delivered by CEO Murphy, “captured increased market acceptance” of its positioning in the AI ecosystem.
Investor sentiment on platforms like Stocktwits turned "extremely bullish," with retail traders amplifying the momentum. However, the surge also raised questions about sustainability. "These are big moves, and they’re not based on anything other than one person saying it," CNBC’s Jim Cramer warned, citing the lack of new fundamental data to justify the rally. Source 3
Analyst Divide: Strategic Growth vs. Speculative Bubble Concerns
While some analysts viewed the rally as a validation of MRVL’s strategic bets, others cautioned against overexuberance. Stifel’s report noted that Murphy’s Computex 2026 keynote was "in line with previously disseminated information," suggesting the company’s long-term growth trajectory was already priced in. Still, the event served as a catalyst, with the firm highlighting MRVL’s expanding role in silicon photonics and custom AI chips.
The company’s fiscal 2029 revenue projections—targeting $10 billion from its custom chip business—added to the optimism. This aligns with broader industry trends: Nvidia’s $2 billion investment in MRVL earlier this year, alongside a strategic partnership, signals confidence in the chipmaker’s ability to scale.
However, not all investors are convinced. Cramer, despite praising CEO Matt Murphy’s leadership, warned that the stock’s 26% jump "doesn’t feel grounded in new developments." He questioned whether the market was "a little too euphoric," drawing parallels to the dot-com bubble’s speculative excesses.
Jim Cramer’s Warning About Market Exuberance and CEO Influence
Jim Cramer’s remarks on CNBC’s "Squawk on the Street" captured the tension between optimism and skepticism. "Doesn’t that make you feel maybe things are a little too euphoric?" he asked, challenging the market’s reliance on a single executive’s endorsement. The comment came as MRVL’s market cap neared $254 billion, a figure still 40% below the $1 trillion mark achieved by peers like SK Hynix.
Cramer’s concern isn’t new. He has previously criticized AI stocks for surging without "fundamental drivers," a critique that now extends to MRVL. Yet he stopped short of dismissing the company itself, calling Murphy "a frequent guest on my show" and praising his 2,700% share price increase since 2016.
The CEO’s tenure has coincided with a 450% rise in the Nasdaq Composite, but Cramer argued that "executives should be careful not to fuel the growing exuberance.
