FinXKing
Software Developer at Microsoft, Tesla/NVIDIA Commentary
Marvell can become the next $1 trillion company, which makes the investing case simple. Jensen Huang was cited as saying so, and even if that comment actually referred to AMD, Marvell can still reach the mark. x.com x.comÂ
The Lumentum merger makes Marvell's path toward a $1 trillion valuation look clearer if it executes well. Jensen Huang had called Marvell the next $1 trillion company. Lumentum's demand is sold for the next two to three years, though whether that gives Marvell an edge remains an open question. Marvell looks like a long-term opportunity, but the route to building a position is still unclear. x.comÂ
Marvell looks like the biggest bubble mankind has ever seen at about 100x trailing earnings, 170x forward earnings and 33x sales. The stock added about $110 a share, roughly $100B of market cap, after Jensen Huang said it will become a trillion-dollar company. x.comÂ
Marvell is not toast, but the $1 trillion valuation a post the author replies to attributes to Jensen Huang is unlikely in 2026 and most likely comes sometime in 2027. x.comÂ
Marvell is down 16% from its recent all-time high despite strong signals that aren't being talked about enough. Jensen Huang called it the next trillion-dollar company on June 2, President Trump made his largest purchase, $5.25M of Marvell, in July, and Marvell signed a custom chip partnership with Alphabet last month. x.comÂ
Marvell's roughly $90 billion valuation jump on a single comment is not sustainable; the only question is how long it can last. Per The Kobeissi Letter, the stock rose over 45% in two days after NVIDIA CEO Jensen Huang said it could become the next trillion-dollar company. x.comÂ
Marvell looks interesting at less than 30x calendar-2027 EPS against expected 60-70% annual EPS growth, but overpaying for Lumentum could drive its shares lower. Marvell could pay up to $110B, roughly a 30% premium; the stock-versus-debt mix is unclear, and Lumentum holders might own a third of the combined company. If the deal falls apart, Marvell could rise 10-12%. x.comÂ
Marvell Technology could return 5x from current prices if it becomes a $1 trillion company, as Nvidia CEO Jensen Huang said it will one day. Today looks like a nice entry. x.comÂ
Marvell is fast-growing and impressive, but there are better investments: it would need many years of growth to justify the $1 trillion valuation Nvidia's Jensen Huang suggested. Its annual revenue is just under $10B and its forward P/E is 47. By comparison, Micron has more than 10x the revenue and a forward P/E of just 6, and still trades below a $1 trillion market cap. x.comÂ
Marvell is easily the stock pick for the next decade. x.comÂ