Shares of Marvell Technology (MRVL +32.71%) soared to a record high on Tuesday after Nvidia CEO Jensen Huang said the chipmaker was on its way to becoming a vastly more valuable business.
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High praise from a tech titan
Marvell has a lucrative custom chip design business. The semiconductor maker's application-specific integrated circuits (ASICs) help to accelerate artificial intelligence (AI) workloads in cloud data centers.
Yet Marvell's optical networking and connectivity solutions could prove to be even more profitable.
NASDAQ: MRVL
Key Data Points
"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... That's the reason why Marvell is so essential," Huang said during the COMPUTEX technology conference in Taiwan.
Huang, in turn, believes Marvell will be the "next trillion-dollar company."
That's a big statement about a company that, even after today's gains, is currently valued at about $255 billion. If Huang is correct, investors who buy Marvell's shares today stand to nearly quadruple their money.
Talking his book
It should be noted that Nvidia invested $2 billion in Marvell back in March. The two semiconductor leaders are working together to hasten the development of high-speed optical connectivity infrastructure for AI data centers.
