Key facts
- Marvell Technology stock surged 32.5% in a single day, its largest ever.
- Nvidia CEO Jensen Huang predicted Marvell would be 'the next trillion-dollar company'.
- Nvidia has invested $2 billion in Marvell for AI infrastructure collaboration.
- Marvell's market cap of $254.38 billion makes it the largest company eligible for S&P 500 inclusion.
- The next S&P 500 rebalancing is scheduled for June 19.
Marvell Technology's stock experienced a significant rally, rising approximately 13% in premarket trading on Wednesday, extending a historic 32.5% surge from the previous day. This surge was triggered by Nvidia CEO Jensen Huang's declaration at the Computex conference in Taipei that Marvell would become 'the next trillion-dollar company.' Huang praised Marvell's networking and connectivity products as crucial for AI infrastructure development. Nvidia has further demonstrated confidence by investing $2 billion in Marvell as part of a collaboration to build semi-custom AI infrastructure. Marvell CEO Matthew Murphy's keynote at Computex highlighted the company's positioning in the data center and AI investment cycle. Stifel analyst Tore Svanberg described the event as a 'high-production reaffirmation' of the firm's thesis on Marvell. With a market capitalization of $254.38 billion at Tuesday's close, Marvell is now the largest company not yet included in the S&P 500, and its inclusion in the upcoming June 19 rebalancing could lead to further buying from index funds. Stifel raised its 12-month price target for Marvell (MRVL) to $321 from $230, maintaining a Buy rating.