Shares of Marvell Technology rocketed past $261 on June 2 after a rare confluence of catalysts: a blockbuster product launch, a public endorsement from Nvidia's CEO, and lingering market signals that Marvell is consolidating its grip on AI networking. The question now is whether the fundamentals can keep pace with a stock that has risen 136% in six months.
Nvidia's CEO Called Marvell "The Next Trillion-Dollar Company"
Nvidia CEO Jensen Huang referred to Marvell as the "next trillion-dollar company" during Computex 2026 — a striking comment given Marvell's current market cap is roughly one-fifth of that figure . Marvell introduced a new AI-optimized switch chip capable of 102.4 Tbps, designed to help AI data centers handle larger workloads while cutting power consumption . As companies build larger AI clusters, demand is surging not just for processors but for the networking technology connecting them — Marvell's core business.
A $3.25 Billion Acquisition Is Already Reshaping Its Supply Chain
Marvell completed its acquisition of Celestial AI on February 2, 2026 , a deal that brings optical interconnect technology for high-bandwidth AI deployments and strengthens Marvell's position in next-generation data center architectures . As the new parent, Marvell terminated all purchase orders from POET Technologies, citing confidentiality breaches over shipping data disclosures . POET's stock plunged 51.6% , underscoring that Marvell — not its suppliers — holds the leverage in this relationship.
Revenue Is Growing Fast, but the Price Tag Is Extreme
Marvell expects revenue to reach nearly $11.5 billion in fiscal 2027, roughly 40% growth, following 42% growth in fiscal 2026 . First-quarter sales hit $2.42 billion, up 28% year-over-year, with data centers accounting for about 76% of total revenue . Yet the stock trades at a trailing price-to-earnings ratio — share price divided by last year's earnings — of 71.24x, more than double its five-year median of 30.33x .
Insiders Have Been Selling Into the Rally
Over the past three months, insiders sold approximately $32 million in Marvell shares with no reported purchases . The company's president and COO sold 10,000 shares on June 1 under a prearranged trading plan adopted in January . Preplanned sales don't necessarily signal bearishness, but the pattern adds a cautionary footnote to an otherwise euphoric session. Marvell's AI story is real — but at 71x earnings and a stock up 31% in a week, investors are paying handsomely for a future that must now materialize on schedule.