Bull vs Bear: Is Marvell Technology the next $1tn company?

Marvell is set to be the “next trillion-dollar company,” says Nvidia CEO Jensen Huang.  Shares sored 32% on the remarks, leaving the company with a market cap of a little over $254bn by the close on Tuesday (2 June). So, what chance that it can add another 300% in market cap?

What does Marvell do?

Marvell sits at the nexus of the AI data centre buildout. Its products encompass custom AI chips (XPUs), optics, networking, storage, and security. But the key is the Data Center Interconnect (DCI) Modules, which transmit data over regional fibre networks.

Chairman and CEO Matt Murphy referenced these in the recent earnings call. 

“The increase in our revenue outlook continues to be driven by our data centre business, which we now expect to grow approximately 50% this fiscal year. Notably, we expect our interconnect business to grow more than 70% [YoY], well above our prior expectation of 50% growth.”

Huang thinks these networking and connectivity chips are essential to data centres where computing tasks are spread across an array of thousands of connected chips where data needs to be shared. 

“When you take a computing problem, and you disaggregate it into a lot of parts, and you distribute it across the entire data centre, what’s necessary is connectivity,” Huang said. “That’s the reason why Matt’s doing so well. That’s the reason why Marvel is so essential.”

It’s worth pointing out that Nvidia is not a disinterested party – it recently disclosed a $2bn investment in Marvell. 

Earnings outlook & analysts 

Last week Marvell reported record revenue of $2.418 billion for its fiscal 27 first quarter, up 28% year over year. It guided for $2.7bn in revenue for Q2. The company also raised its 2028 revenue outlook by $1.5bn, with management now expecting 45% YoY growth to $16.5bn.

Analysts have been indicating that the stock is underestimated by the market, despite its thumping gains that have seen it rally +225 YTD in 2026. The worry about competition seem to be have been overdone and the implication from Huang’s remarks seem to bear this out.

The consensus buy rating now looks a little out of step with the average price target of $225 following Tuesday’s rapid gains. We await to see whether Wall St catches up with PT upgrades or waits for this one to fade.

BofA recently listed a few upside and downside risks to the stock (no mention of a plug from Huang). Downside risks included any loss of visibility in its custom Application-specific integrated circuit (ASIC) projects, plus more generic issues around competition in AI compute and any cyclical slowdown in the enterprise network and storage markets. Better visibility in ASIC projects and market share gains in data centre networking switching.

In its favour is potential inclusion in the S&P 500, which has been talked about by analysts. The next review is 19 June and Marvell’s market cap would place it in the top 10% of constituents should it be included.