Tech stock skyrockets 25% after Nvidia CEO declares it the 'next trillion-dollar company'
Nvidia has officially crowned the next big tech company after CEO Jensen Huang offers a glowing endorsement, causing the semiconductor manufacturer's stock price value to skyrocket by 25% in a matter of days.
Every company wants to achieve the success that Nvidia has managed in the last few years following the AI boom, and every single investor wishes they'd been one of the lucky ones to have already bet heavily on the GPU giant.
Nvidia's Jensen Huang might just have given you a head start, however, as he has named Marvell Technology the next big thing, claiming that it won't be too long until it joins the most valuable companies in the world with a trillion-dollar stock market valuation.
As reported by Quartz, Huang made this bold claim during an appearance at Computex in Taipei earlier this week, and the markets responded almost immediately with a skyrocketed price.
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Opening at $199.49 per share on Monday, June 1, Marvell quickly rose to a peak of $323.50 just an hour before closing time on Tuesday, June 2, marking a 62.16% increase in just under 34 hours.
It has settled down slightly since then, sitting at around $307 per share at the time of writing on June 3, but anyone who was smart enough to heed Huang's praise will have been able to see significant returns that could continue to grow in the months and years to come.
For example, if you'd invested $10,000 into Marvell exactly one year ago, you'd now have stock worth roughly $49,500, marking a sizeable return on investment in a relatively short amount of time.
The reason why Marvell's stock has grown so much is due to its important position within the tech world's reliance on semiconductors, as the company's networking and connectivity chips are already gold dust for anyone looking to build a new AI data center.
"That's the reason why Matt's doing so well," Huang said in reference to Matthew Murphy, Marvell's CEO. "That's the reason why Marvell is so essential."
The company still has a long way to go if it wants to fulfil Nvidia's bold prediction, as its estimated market cap of $270 billion means that it would have to grow an additional 270% to reach that fabled threshold — a valuation currently only held by 14 companies worldwide.
Marvell will certainly have a lot of help from Nvidia, however, as the pair have already entered into a partnership that saw the latter invest $2 billion, and the direction of travel for the AI industry only appears to indicate positive things for its biggest players.