NVIDIA's CEO Jensen Huang has praised Marvell Technology, suggesting it has the potential to become the next trillion-dollar company. This bullish endorsement fueled a 20% surge in the company's share price on Tuesday.

During a joint appearance at the Computex event in Taipei on Monday, Huang and Marvell's CEO Matt Murphy highlighted the company's strength in supplying chips for AI infrastructure. The semiconductor firm, which specializes in data center chip design, saw its stock price jump sharply in response.

Huang stated that Marvell could become "the next trillion-dollar company." He emphasized that the company's networking and interconnect chips are essential for data centers, as computational tasks are now distributed across thousands of interconnected chips that require high-speed data exchange.

"When you break apart a compute job and distribute it across an entire data center, the interconnect is the single most important element of that," Huang explained. "That's why Matt's business is doing so well and why Marvell is so central."

"The future of computing is distributed, modular, with massive amounts of compute, storage, and bandwidth aggregated in hyper-scale clusters, and interconnect is the foundation of that," the NVIDIA CEO added.

Marvell Technology (NASDAQ: MRVL)

Marvell focuses on developing high-performance chips, with products serving global data infrastructure across cloud computing, artificial intelligence, enterprise networking, 5G carrier networks, and automotive chips.

The company reported its first-quarter fiscal 2027 results in May, exceeding analyst expectations. Revenue for the quarter reached $2.4 billion. Driven by strong data center performance, the company anticipates continued revenue growth for the current fiscal year.