--- title: "The Next $1 Trillion AI Winner May Already Be Hiding Inside Nvidia's Supply Chain" type: "News" locale: "en" url: "https://longbridge.com/en/news/290354979.md" description: "Nvidia CEO Jensen Huang predicts Marvell Technology could become the next trillion-dollar AI company. Marvell, now focused on data center chips, has a $2 billion investment from Nvidia and partners via NVLink Fusion to integrate its custom AI accelerators into Nvidia's ecosystem. Analysts expect strong growth in revenue and EBITDA through 2029, driven by AI demand. While currently valued at 24x revenue, long-term projections suggest significant upside if Marvell meets growth estimates, potentially surpassing the trillion-dollar valuation." datetime: "2026-06-21T16:50:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290354979.md) - [en](https://longbridge.com/en/news/290354979.md) - [zh-HK](https://longbridge.com/zh-HK/news/290354979.md) --- # The Next $1 Trillion AI Winner May Already Be Hiding Inside Nvidia's Supply Chain In early June, **Nvidia** (NVDA +3.08%) CEO Jensen Huang predicted that **Marvell Technology** (MRVL +7.27%), which has a market cap of $272 billion, would become the "next trillion-dollar company" because its networking and connectivity chips were essential to data centers. Let's see if this oft-overlooked chipmaker can join the 12-zero club within the next few years. ## What does Marvell do? Marvell once mainly produced Wi-Fi, Internet of Things (IoT), and mobile chips for consumer devices. But over the past decade, the company exited those cyclical, lower-margin markets. It aggressively expanded its data center segment with bold acquisitions (including Cavium in 2018 and Inphi in 2021) and new product launches. ![An illustration of a digital brain.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzUwMjIvYWktYnJhaW4uanBnJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. Today, Marvell generates most of its revenue from its data center segment, which sells high-speed optical connectivity chips, custom application-specific integrated circuits (ASICs) for hyperscalers, Ethernet switches, and data processing units (DPUs) that bundle together CPUs, networking interfaces, and programmable data acceleration engines. Companies need to upgrade their data centers with that hardware to handle the newest AI applications. ## What is Marvell's relationship with Nvidia? Earlier this year, Nvidia invested $2 billion in Marvell and solidified its partnership with NVLink Fusion, a platform that integrates Marvell's technology into Nvidia's data center ecosystem. NVLink enables hyperscalers to buy Nvidia's data center GPUs, CPUs, and DPUs, then directly integrate them with Marvel's custom AI accelerators and network chips. The two companies are co-developing advanced optical interconnect and silicon photonics solutions to eliminate data-transfer bottlenecks in cloud and AI data centers. Marvell is only merging its infrastructure hardware into Nvidia's Aerial AI-RAN software platform to transform conventional telecommunications networks into intelligent, software-driven computing grids. Expand ![Marvell Technology Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01SVkwucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: MRVL Marvell Technology Today's Change (7.27%) $21.04 Current Price $310.58 ### Key Data Points Market Cap $272B Day's Range $302.36 - $329.88 52wk Range $61.44 - $329.88 Volume 251M Avg Vol 40.2M Gross Margin 50.64% Dividend Yield 0.08% ## How fast is Marvell growing? From fiscal 2022 to fiscal 2026 (which ended this January), Marvell's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at CAGRs of 16% and 17%, respectively. But from fiscal 2026 to fiscal 2029, analysts expect its revenue and adjusted EBITDA to grow at CAGRs of 41% and 43%, respectively, as the AI market expands. Marvell's stock isn't a screaming bargain at 24 times and 63 times this year's revenue and adjusted EBITDA, respectively. But it also doesn't seem overvalued relative to its long-term growth potential. If Marvell matches analysts' estimates through fiscal 2028, grows its adjusted EBITDA at a 30% CAGR through 2036, and trades at 30 times its current year's adjusted EBITDA by the final year, its stock could rise more than eightfold over the next ten years. That rally would drive Marvell's valuation above $2.3 trillion, easily surpassing Huang's "trillion-dollar" outlook. Therefore, if you're looking for a hidden gem in the AI market that already has plenty of irons in the fire, Marvell checks all the right boxes. ### Related Stocks - [MRVL.US](https://longbridge.com/en/quote/MRVL.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [MVLL.US](https://longbridge.com/en/quote/MVLL.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [MRVU.US](https://longbridge.com/en/quote/MRVU.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Nvidia loses almost $330 billion in value as AI stock fears spread](https://longbridge.com/en/news/290306817.md) - [SharonAI Raises $1.6 Billion to Expand NVIDIA AI Infrastructure](https://longbridge.com/en/news/290066574.md) - [Nvidia Supply Chain Gets A Boost As Coherent Expands Texas AI Manufacturing Facility](https://longbridge.com/en/news/290038332.md) - [Amazon to sell custom artificial intelligence chips](https://longbridge.com/en/news/290302856.md) - [Chip startup Tensordyne expects $200 million in orders for AI system to rival Nvidia](https://longbridge.com/en/news/289795764.md)