Nvidia CEO Jensen Huang calls Marvell Technology the next trillion-dollar company; Marvell stock has surged to a market cap of about $278 billion.

At Computex Week in Taipei, Nvidia CEO Jensen Huang told Marvell Technology CEO Matt Murphy that Marvell's chips are essential and declared, 'That's why you're going to be the next trillion-dollar company.' Nvidia has invested $2 billion of its cash in Marvell stock.

Marvell specializes in optical interconnect chips that transmit data at ultra-high speeds, which optimize data centers with GPUs. The company's interconnect business is expected to grow 70% year-over-year, supporting overall revenue growth of 40% for the full year. Marvell's custom AI accelerator business is forecast to reach $10 billion in revenue by fiscal 2029.

For Marvell to reach a $1 trillion valuation within the next few years, it would need to reach a trailing price-to-sales ratio of about 40 in early 2029 based on management's guidance. By contrast, Nvidia currently trades for 21 times sales and 33 times earnings.