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Nvidia CEO Jensen Huang spoke at the Computex event in Taipei. He praised Marvell Technology and said it could be the next “trillion-dollar company.”
Huang’s words made Marvell’s stock price rise by 32.5% last Tuesday. Now, the company’s market value is over $250 billion. If Huang is correct, the stock could grow four times more. Nvidia invested $2 billion in Marvell earlier this year.
Marvell has two main businesses. The first is making special chips for other companies. It competes with Broadcom in this area. The second is its work on memory chips used in Nvidia’s products. Amazon is the biggest customer, using Marvell’s technology for its Trainium chip.
However, there are worries about Marvell’s future with Amazon. A company called AIchip might take over this work. Marvell also helps Microsoft with its chips, but they have not sold many yet.
Marvell’s main growth area is in optical connections, which are important for fast data transfer. The company expects this part to grow 70% this year.