When the CEO of the world’s most valuable semiconductor company calls you “the next trillion-dollar company,” the market tends to listen. Marvell Technology shares surged roughly 32-33% intraday on June 2, 2026, closing in the range of $290-$307 after Nvidia’s Jensen Huang singled out the chipmaker during his Computex Taipei 2026 keynote.

The endorsement was a public acknowledgment of Marvell’s increasingly central role in the AI infrastructure stack, specifically the connectivity layer that ties together the GPUs, switches, and optical links inside modern data centers.

The numbers behind the hype

Data center revenue hit $1.52 billion in the most recent quarter, a 38% jump year over year. That segment now accounts for roughly 73% of total revenue.

The company’s Q1 FY2027 revenue came in at $2.418 billion, reflecting 28% year-over-year growth.

Within the data center business, electro-optics made up half of segment revenue. Analysts expect optical networking revenue to grow by as much as 90% from 2026 to 2027. Broader data center revenues are projected to increase 30-40% year over year during the same period.

Product launches and acquisitions paint a clear picture

On May 27, 2026, just days before the stock surge, Marvell launched the Teralynx switch. It delivers 102.4 terabits per second of switching capacity, making it the first AI and cloud switch at that throughput level.

Earlier in March 2026, the company also rolled out a 260-lane PCIe 6.0 switch, targeting the next generation of server architectures.

On the M&A front, Marvell acquired Celestial AI, bringing in advanced photonic fabric technology, and Polariton Technologies, expanding its optical scaling capabilities.

What this means for investors

Stifel raised its price target on MRVL to $321, while HSBC set its target at $300. Both firms are pointing to the same growth drivers: expanding data center revenue, explosive optical networking demand, and Marvell’s deepening integration into AI infrastructure supply chains.

With 73% of revenue coming from data centers, Marvell has effectively made a one-way bet on AI infrastructure spending. The electro-optics segment, already half of data center revenue, is where analysts see the most aggressive growth trajectory, with projected growth of up to 90% from 2026 to 2027.