Nvidia CEO Jensen Huang called Marvell Technology the next trillion-dollar company at Computex on June 2. Marvell shares jumped about 33% in a single session, their biggest one-day gain on record. The move added roughly $56 billion in market value, pushing Marvell above $250 billion.
The endorsement landed as investor Michael Burry warned that Nvidia itself faces concentrated demand and hidden financing risk across the AI buildout.
What Jensen Huang Said About Marvell
Huang made a surprise appearance during Marvell CEO Matt Murphy’s keynote in Taipei, spending about 10 minutes on stage. He praised Marvell’s networking and connectivity chips as essential to data centers, where AI workloads run across thousands of linked processors that must share data quickly.
The remark followed Nvidia’s roughly $2 billion equity investment in Marvell, which tied the firm’s custom accelerators and optical networking to Nvidia’s AI factory architecture.
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Why the Marvell Bull Case Holds
Bulls argue connectivity is the next bottleneck in AI systems after raw compute and memory. Marvell builds the switches, optics, and custom silicon that link those clusters, and data center products now drive most of its revenue.
Skeptics counter that Marvell trades at a steep valuation. It also faces strong competition from Broadcom in networking silicon.
“…the next trillion-dollar company,” CNBC reported, citing Jensen Huang.
A single endorsement rarely changes fundamentals, yet Huang’s words carry weight with traders. Analysts have also stayed broadly bullish on Nvidia, reflecting confidence in the wider AI trade.
Michael Burry’s Warning on Nvidia
Michael Burry, known for his role in The Big Short, has taken the other side of the AI story. His firm, Scion Asset Management, bought put options (short orders) on one million Nvidia shares.
Burry flagged Nvidia’s customer concentration as a core risk. He said the top three customers now account for 64% of Nvidia’s accounts receivable, up from 56% the prior quarter and about 33% in 2020.
He also described much of today’s spending as a temporary benchmarking phase he calls a tokenmaxxing bubble. In his view, that demand looks permanent now, but could fade.
“The conditions for an aggressive fall are as strong as they have been in the history of the stock,” Burry stated.
Burry’s caution echoes other warnings he has issued about a wider market bubble. He has recently been shorting chip stocks as well.
His thesis points to leveraging hidden across the system. A Moody’s report in February found that Microsoft, Amazon, Alphabet, Meta, and Oracle have $662 billion in future data center lease commitments that are not yet reflected on their balance sheets.
That figure equals roughly 113% of the five companies’ adjusted debt, according to Moody’s. The obligations become real cash costs once the leases begin.
Other signals have added to the caution. Reports of falling H200 rental prices have raised questions about near-term GPU demand.
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