Marvell stock surges 33% as Nvidia CEO predicts $1 trillion value

Marvell Technology's market value has more than tripled this year to $254 billion, making it the largest company eligible for S&P 500 inclusion.

Nvidia CEO Jensen Huang's prediction that Marvell Technology could become the next trillion-dollar chip company ignited a 33% single-day surge, pushing the semiconductor firm's market value past $254 billion and within reach of S&P 500 membership.

"Useful AI has arrived," Huang said at the Computex trade show in Taipei alongside Marvell CEO Matt Murphy, citing the rise of autonomous AI agents as the reason demand for both companies' products is "going through the roof."

Marvell shares closed at a record $301.65 on Wednesday, extending a rally that began after Huang's onstage endorsement. The stock has more than tripled this year. Nvidia disclosed a $2 billion investment in Marvell as part of a March partnership allowing customers to combine components from both companies for semi-custom AI infrastructure.

Marvell's $254 billion market capitalization makes it the largest eligible company for the S&P 500, with the next quarterly rebalancing scheduled for June 19. Inclusion would trigger automatic buying from passive funds tracking the benchmark, providing a fresh catalyst for a stock that has already surged 158% year-to-date.

The rally reflects a broader wave of enthusiasm in AI-related semiconductor stocks. Broadcom also closed at a record on Tuesday, lifted by the same momentum following Huang's Computex appearance. Marvell's specialty — high-speed networking and data infrastructure chips — has become critical as AI data centers distribute computing across thousands of connected processors.

Huang framed Marvell's connectivity technology as essential to the AI buildout. "When you take a computing problem, and you disaggregate it into a lot of parts, and you distribute it across the entire data center, what's necessary is connectivity," he said. "That's the reason why Marvell is so essential."

The Nvidia CEO also highlighted the industry's transition from copper cables to optical communications (silicon photonics, which uses light to transmit data more efficiently than electricity) as a key growth driver for Marvell. Nvidia has invested billions in multiple firms developing photonics technology, according to the company.

S&P 500 catalyst

Marvell has been discussed by analysts as a potential S&P 500 candidate in recent quarters. The index's selection committee at S&P Dow Jones Indices has discretion over which eligible companies to add, and it sometimes skips changes at scheduled rebalancings. But Marvell's market value — which would place it among the top 50 S&P 500 constituents, narrowly ahead of Sandisk — makes its eventual inclusion appear inevitable.

Marvell shares trade at a premium reflecting the AI infrastructure buildout, but the S&P 500 catalyst offers a near-term event that could sustain momentum. If added on June 19, passive fund inflows would provide a structural bid. The risk: the stock has already tripled this year, and profit-taking after a 33% single-day move is a well-worn pattern in semiconductor names.

This article is for informational purposes only and does not constitute investment advice.