Marvell Stock Eyes S&P 500 Entry as Jensen Huang’s Trillion-Dollar Endorsement Fuels Rally

Marvell Technology is riding a double wave of momentum that has propelled its shares more than 55% higher in just seven days. The AI chipmaker’s run is fueled not only by a high-profile endorsement from Nvidia chief Jensen Huang but also by growing expectations that it will soon join the S&P 500 Index — an event that could unleash forced buying by index-tracking funds.

Market watchers see Marvell as the standout candidate for the next S&P 500 addition, given its market capitalization of roughly $264 billion, more than triple that of the next contender, Bloom Energy. A decision on index changes could come as early as Friday, with actual inclusion penciled in for June 19. The prospect of passive inflows helped Marvell shake off a sharp sector selloff triggered by Broadcom’s weaker-than-expected AI chip forecast.

Huang’s Trillion-Dollar Stamp and Nvidia’s $2 Billion Bet

The recent surge began after Huang took the stage at the Computex Taipei trade show and anointed Marvell as a potential “next trillion-dollar company” for AI infrastructure. The praise was no mere compliment. Nvidia had already invested $2 billion in Marvell through convertible notes in March 2026, a move analysts view as a direct vote of confidence for next-generation AI clusters.

Underpinning that bet is Marvell’s new optical processor, designed to accelerate data movement inside AI data centers. The chip, largely developed at the company’s Israeli research centers where headcount has grown to roughly 500, takes direct aim at Mellanox-based architectures. It promises to relieve the communication bottlenecks that plague large-scale AI models.

Record Revenue and Upbeat Guidance

The fundamental picture supports the optimism. For the first quarter of fiscal 2027, Marvell posted revenue of $2.418 billion, a 28% increase year-over-year, with its data-center segment surging 38% to $1.52 billion. Management guided second-quarter sales to around $2.7 billion and sees full-year revenue of roughly $11.5 billion, representing 40% growth.

Should investors sell immediately? Or is it worth buying Marvell Technology?

Custom AI chips are expected to be a key growth driver, with revenue from that segment projected to top $10 billion by fiscal 2029, up from just $1.5 billion last year.

Broadcom’s Blip Couldn’t Derail the Rally

The broader chip sector was rattled late Wednesday when Broadcom reported a record quarterly revenue of $22.19 billion but disappointed on its AI-chip forecast for the current quarter, guiding to $16 billion versus the $17.2 billion consensus. Broadcom shares slumped more than 14% in response, dragging down Micron Technology by 7.1% and AMD by 5%. Marvell initially dropped about 6% in pre-market trading, but quickly recovered and closed Thursday with a gain of 4.78% at €272.85.

The stock has now soared roughly 258% since the start of the year, a breathtaking run that has pushed technical indicators deep into overbought territory. The relative strength index stands at 88.7, and the share price trades well above its 50-day moving average of €139. Annualized volatility of 108% underscores the extreme price swings.

Analyst Support Despite Stretched Valuation

Wall Street remains broadly bullish. Thirty-eight of 44 analysts rate the stock a buy. Stifel recently lifted its price target to $321, while Morningstar is more cautious, pegging fair value at $235. The next quarterly report is due on August 27, with analysts expecting earnings per share of $0.89 on revenue of $2.7 billion.

For now, Marvell must prove it can close the technology gap with market leader Broadcom in high-end switches — a challenge that will determine whether its lofty valuation can be sustained. The combination of index inclusion momentum and a trillion-dollar stamp of approval has created a powerful narrative, but the stock’s rapid ascent leaves little room for error.