Nvidia CEO Touts Marvell as a "Next Trillion-Dollar" Candidate; Shares Surge 33%

Nvidia CEO Jensen Huang on June 2 at Computex called Marvell Technology a potential "next trillion-dollar company," a comment that sent Marvell shares up about 33% in one session—the biggest one-day jump on record. The rally added roughly $56 billion to Marvell's market capitalization, lifting it above $250 billion. The move came as prominent investor Michael Burry cautioned that Nvidia faces concentrated demand and underappreciated financing risks tied to the broader AI buildout. Huang appeared unexpectedly during Marvell CEO Matt Murphy's keynote in Taipei, spending around 10 minutes on stage. He highlighted Marvell's networking and connectivity chips as critical infrastructure for data centers, where AI workloads are distributed across thousands of connected processors that need to move data at high speed. The endorsement followed Nvidia's roughly $2 billion equity investment in Marvell, a deal that links Marvell's custom accelerators and optical networking capabilities to Nvidia's AI factory architecture. Bullish investors argue that after compute and memory, connectivity is emerging as the next bottleneck in AI systems. Marvell supplies switches, optical components, and custom silicon that tie together large clusters, and its data-center segment now accounts for most of its revenue. Valuation remains a sticking point for skeptics, who also point to intense competition from Broadcom in networking silicon. CNBC reported Huang's "next trillion-dollar" remark. A single comment does not change fundamentals, but traders often treat Huang's views as market-moving. Analysts have also remained broadly positive on Nvidia, reflecting continued confidence in the wider AI trade. Burry, known for "The Big Short," has taken a more cautious stance. His firm, Scion Asset Management, bought put options tied to one million Nvidia shares. He has flagged customer concentration as a key risk, noting that Nvidia's top three customers account for 64% of accounts receivable, up from 56% the prior quarter and about 33% in 2020. Burry also characterized much of the current spending cycle as a temporary benchmarking phase he calls a tokenmaxxing bubble. In his view, demand appears durable today but could fade. "The conditions for an aggressive fall are as strong as they have been in the history of the stock," he said. His caution aligns with broader bubble warnings and a recent increase in bearish positioning in chip stocks. One focus is leverage that may be embedded across the system. A Moody's report in February estimated that Microsoft, Amazon, Alphabet, Meta, and Oracle have $662 billion in future data-center lease commitments not yet reflected on their balance sheets—about 113% of the five companies' adjusted debt, according to Moody's. Those obligations translate into cash outlays once leases commence. Additional signals have reinforced the cautious tone. Reports of falling H200 rental prices have raised questions about near-term GPU demand.