Marvell Technology surged a breathtaking 32% yesterday after NvidiaCEO Jensen Huang called the chipmaker, which his company has a stake in, ⁠the next “trillion-dollar company.”

• Huang made the comments at the Computex expo in Taipei on ‌Tuesday. It’s not the first vote of confidence for Marvell from the world’s most valuable company: Nvidia announced a strategic partnership with Marvell in March, saying that it has invested $2 billion in the company.
• Marvell’s market capitalization as of Monday’s close was around $192 billion, meaning that Huang’s prediction hinged on a more than 420% rally. It made good headway on that on Tuesday, finishing with a roughly $254 billion market cap. 
• Huang said computing is becoming increasingly disaggregated and distributed, creating a need for advanced connectivity, which is what Marvell specializes in.
• “That’s the reason why Marvell is so essential,” he said, standing onstage next to Marvell CEO Matt Murphy. “That’s why you’re going to be**** the next trillion-dollar company.”

The stock is up more than 244% since the start of the year.

The Takeaway

Huang also projected that demand for optics will continue to grow over the next 5 to 10 years. Optics companies such as Lumentum,**** Coherent, and Applied Optoelectronic rose Tuesday. These companies make optical components that use light, rather than traditional copper interconnects, to move data within and between servers in data centers, a technology increasingly seen as critical for scaling artificial intelligence capacity.