Topline
Shares of Marvell Technology soared in premarket trading early on Tuesday, hours after Nvidia CEO and billionaire Jensen Huang anointed them as the next trillion-dollar company at the Computex trade show in Taipei.
NVIDIA CEO Jensen Huang and Marvell CEO Matt Murphy during a keynote event at COMPUTEX.
Cheng Chia Huang/Getty Images
Key Facts
After showing off his company’s networking chips during his keynote speech, Marvell CEO and Chairman Matt Murphy invited Huang to the stage to discuss the company’s strategic partnership with Nvidia, announced in March.
After being welcomed on stage, the Nvidia CEO interrupted Murphy unprompted and said: “The next trillion-dollar company, ladies and gentlemen.”
Murphy quickly responded with excitement and told Huang, “Let’s do it together.”
Huang touted the arrival of what he called “useful AI” and artificial intelligence agents, and hyped Marvell’s networking semiconductors before reiterating: “That’s why they’re going to be the next trillion-dollar company.”
Murphy responded, saying they have got a “little work to do,” but they were on their way to it.
How Has Marvell’s Stock Price Been Impacted?
Marvell’s stock price surged more than 25% premarket trading early on Tuesday to $274.58. The overnight surge follows a 7% rise in the stock’s price on Monday. Marvel’s stock price is up more than 158% since the start of the year. The company’s market cap breached the $100 billion mark for the first time in December 2024, and it stood at $191.96 at the close of markets on Monday.
Tangent
Huang made another appearance at a Computex keynote on Tuesday, when he was invited by the CEO of the semiconductor giant ARM Holdings, Rene Haas, to join him on stage. On Monday, Nvidia showed off its first fully integrated chip made for Windows laptops and desktops, the RTX Spark, which uses a CPU based on ARM’s chips. When Haas congratulated him on the launch of RTX Spark, the Nvidia CEO quipped, “I announce a product. Look at his stock price. Every product I announce, his stock price goes up. Nothing happens to mine.” ARM’s shares rose 15.73% to $408.85 on Monday following the RTX Spark announcement.
Key Background
On Monday, Huang unveiled the RTX Spark—a chip designed for consumer Windows laptops and desktops capable of running “personal AI agents”—for the first time, marking the company’s first attempt to build a fully integrated consumer chip. The announcement was followed by Nvidia’s best trading day since February as it stock rose 6.26% to $224.36. The RTX Spark is a cut-down version of the chips used on Nvidia’s AI supercomputers and the company claimed it will be able to run powerful local AI agents, along with popular games and productivity software on Microsoft Windows. Nvidia has been making consumer laptops and desktop GPUs for decades, but unlike the RTX Spark—which uses the AI giant’s own custom-made CPU designed in collaboration with MediaTek—those computers had to be paired with either an Intel or AMD CPU. The Spark’s launch will allow Nvidia to take on rivals like Qualcomm, Apple, Intel and AMD.
Further Reading
Nvidia Has Best Trading Day In Months After Revealing New Laptop Chip (Forbes)