Over the last four years, Nvidia has shot to prominence, being the company big tech depended on for the hardware to deliver artificial intelligence services. This led the company’s stock to surge. Now, Nvidia’s Jensen Huang has started the ball rolling for another company to become a success story, and that company is… Marvell.
Marvell’s stock price jumped by 22% this week, according to CNBC. It came after Huang called Marvell Technology the next trillion-dollar firm. For those who are unclear what Marvell does, it is a semiconductor company that designs chips for data centers. It is also supplying the AI infrastructure build-out, making it a super important company in the AI revolution.
In pre-market trading, the company was trading up 22% and up over 158% in the year-to-date; that’s a pretty good return if you invested in Marvell before today.
In his remarks, the Nvidia CEO said that the company’s networking and connectivity chips were essential to data centers where computer tasks are carried out over connected chips that need to share data quickly. Marvell specializes in high-performance chips across cloud computing, AI, enterprise networking, 5G carrier networks, and automotive systems, all of which are key today.
Commenting, Jensen Huang said:
“When you take a computing problem, and you disaggregate it into a lot of parts, and you distribute it across the entire data center, what’s necessary is connectivity. That’s the reason why Matt’s doing so well. That’s the reason why Marvel is so essential. We’ve distributed and disaggregated computing so that it runs across these enormous clusters, so that we could get aggregating the total compute, the total memory, the total bandwidth that we have, and what makes it possible is connectivity.”
Huang’s comments come just a few months after Nvidia invested $2 billion into Marvell, which also caused the stock price to rise 13% at the time.
Many people believe that artificial intelligence-related stocks could be sitting in a bubble if big tech can’t monetize the services to justify the massive amounts they spent. If this bubble pops, then Marvell could be taken out with it as well, given that the price is being significantly driven on the back of the Nvidia CEO’s comments.
If you are reading this and are thinking of investing, be sure to do your own research and only invest what you can afford to lose. Also, keep in mind that it has already seen big gains, so you won’t benefit from those going into it now.
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