Jensen Huang Thinks This Chip Stock Could Hit $1 Trillion. Google Just Gave Him Ammunition

Nvidia CEO Jensen Huang predicted that Marvell Technology, Inc. (MRVL) could become the next trillion-dollar company at the Computex tech exhibition on June 2. On August 19, Marvell disclosed an expanded custom-silicon partnership with Alphabet Inc. (GOOGL), encompassing products for Google's Tensor Processing Unit (TPU) ecosystem, such as AI inference accelerators, storage controllers, network-interface controllers, memory-interface controllers, and near-memory computing.

In return, Google received the right to purchase up to 58.97 million shares of Marvell at $206.58 each, potentially worth around $12.2 billion. The total value, if all performance-based tranches vest, could reach approximately $120 billion.

The partnership signifies a major increase in the scale of spending between the two companies, reinforcing Marvell's role in custom compute and connectivity. Marvell Technology posted record Q1 2027 revenue of $2.42 billion, a 28% increase year-over-year, and projected Q2 revenue of $2.7 billion, a 35% increase. Nvidia also invested $2 billion in Marvell in March.

Reuters estimates that a smooth ramp-up from Google could boost Marvell's revenue by 2032 from roughly $43 billion to about $62 billion. Using Marvell's pre-announcement forward revenue multiple of 4.4x, this results in an estimated equity value of around $270 billion, which is far from the $1 trillion target. Google continues its collaboration with Broadcom, while Morningstar analyst William Kerwin described the Marvell deal as part of an expanding market rather than evidence of Broadcom's decline.

Hedge funds have increased their positions in Marvell, with 95 funds holding the stock at the end of Q2, up from 79 in Q1, and D.E. Shaw increasing its stake by an impressive 658%. Short interest rose to 35.83 million shares, or about 4.1% of the float, still leaving a significant room for bearish activity. Despite Google bolstering the case for Marvell's potential, the $1 trillion valuation remains challenging and requires substantial AI infrastructure wins, continued growth in AI networking, and years of execution.