Nvidia CEO backed Marvell Technology as a potential trillion-dollar company, and the stock surged over 40% since June—but valuation concerns may limit near-term upside.

What happened: Nvidia CEO Jensen Huang recently asserted that Marvell Technology was on course to become a trillion-dollar company. Since his comments at the start of June, Marvell's stock has skyrocketed by more than 40%. Marvell currently has a $270 billion（約43兆円） market cap and produces networking hardware that Nvidia has made compatible with its own products, as well as custom chips (ASICs) that compete directly with Nvidia's graphics processing units.

Why it matters: Nvidia's endorsement is noteworthy because Marvell is both a partner and a competitor—the company's custom chips can operate with greater efficiency than Nvidia's GPUs and cost less to manufacture, posing a direct competitive challenge to Nvidia's primary business. However, Marvell's revenue growth in the first quarter rose 28% year over year, which is slower than Wall Street's expectations of 41% for the rest of 2026 and 45% for next year—rates that may not be enough to justify its current price tag given how expensive the stock has become relative to Nvidia.

What to watch: Marvell is trading at 76 times forward earnings and 50 times next year's expected earnings, compared with Nvidia at 24 times forward earnings and 17 times next year's expected earnings. For Marvell to reach the $1 trillion（約160兆円） level from its current $270 billion（約43兆円） market cap, it will require several years of strong earnings growth.