Shares of Marvell Technology surged 26% shortly after the opening bell on Tuesday after Nvidia CEO Jensen Huang described the semiconductor company as a potential "trillion-dollar" business, underscoring its growing importance in the artificial intelligence infrastructure boom.
The stock opened at $253.46 and climbed as high as $277.22, up 26% as against the previous day's close. As of 9:54 a.m. ET, Marvell Technology shares were trading at $269.23, up $49.80, or 22.69%, giving the company a market capitalisation of approximately $192 billion.
The rally followed Huang's remarks during an on-stage appearance with Marvell CEO Matthew Murphy at Computex in Taipei, where he highlighted the company's role in enabling large-scale AI computing.
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"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," Huang said.
"That's the reason why Marvell is so essential."
Huang went a step further, suggesting Marvell could eventually join the ranks of trillion-dollar technology companies as demand for AI infrastructure accelerates.
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Unlike Nvidia, which dominates the market for AI accelerators, Marvell specialises in networking, connectivity and custom silicon that help move vast amounts of data across data centres. Industry observers often describe these technologies as the digital highways and bridges that allow AI systems to function efficiently at scale.
The latest rally adds to an already stellar year for Marvell. The stock, which traded around $80-$90 at the beginning of the year, has more than tripled as investors pile into companies seen as key beneficiaries of the AI spending cycle
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