Jensen Huang Mention Spurs 32% Rally, Marvell Trades at 80x FY27 Earnings
MRVL•Jensen Huang's Computex mention drove Marvell shares up 32% then 12%, lifting valuation to over 80x FY27 earnings and 53x FY28 despite concentrated hyperscaler and inventory risks. A sector-wide sell-off after Broadcom’s cautious AI outlook knocked Marvell down over 3% and may delay its S&P 500 inclusion prospects.
1. Nvidia Endorsement Sparks Historic Rally
At Computex, Nvidia CEO Jensen Huang highlighted Marvell as a potential future trillion-dollar chip company, triggering a roughly 32% stock surge in one session and an additional 12% rise in subsequent trading, propelling shares toward record highs.
2. Elevated Valuation Raises Execution Concerns
Marvell now trades above 80x forward FY27 earnings and 53x FY28 estimates, reflecting near-perfect execution expectations, even as company filings flag risks from heavy hyperscaler reliance—Amazon, Microsoft and Google account for 74% of data center revenue—and potential order deferrals from inventory build-ups.
3. Sector Sell-Off and Index Inclusion Outlook
A downturn in the semiconductor sector after Broadcom’s cautious AI chip guidance knocked Marvell down over 3% pre-market, while its explosive rally has analysts eyeing a likely S&P 500 addition once volatility subsides.
