Nvidia CEO Jensen Huang publicly endorsed Marvell as a future trillion-dollar company on June 2 at COMPUTEX 2026, triggering a massive rally in U.S. optical communication stocks. Huang praised the American semiconductor design firm's high-speed optical connectivity technology and network chips as critical to AI data center infrastructure, stating the company is destined to reach trillion-dollar valuation. Marvell stock surged 32.52 percent to close at $290.79 on June 2, marking its largest single-day gain since 2000, with market capitalization reaching $254.38 billion after a single-day increase exceeding $62 billion. The endorsement reflects the growing recognition of optical connectivity as a key bottleneck in AI infrastructure, as data center compute tasks are distributed across thousands of interconnected chips requiring rapid data sharing.
Marvell Stock Surges 32.52 Percent on June 2 Following Huang Endorsement
During a joint conversation with Marvell CEO Matthew Murphy at COMPUTEX 2026 on June 2, Huang explained that Marvell's optical connectivity technology is essential because data centers distribute computing tasks across thousands of interconnected chips that must share data rapidly. He stated that the industry will continue using substantial amounts of copper cabling alongside massive volumes of optical components over the next five to ten years.
Marvell stock (Nasdaq: MRVL) closed at $290.79 on June 2, up 32.52 percent, representing the company's largest single-day gain since 2000. Total market capitalization reached $254.38 billion, with a single-day increase exceeding $62 billion. Year-to-date, the stock has gained 225.30 percent.
The endorsement also lifted other optical communication stocks. As of June 2 close, optoelectronics and compound semiconductor company Coherent (NYSE: COHR) rose 17 percent, optical component and laser manufacturer Lumentum (Nasdaq: LITE) gained nearly 14 percent, and fiber optic cable industry leader Corning (NYSE: GLW) climbed over 13 percent.
Marvell Reports Record Q1 FY2027 Revenue of $2.418 Billion
Marvell is a global semiconductor and network communication technology provider with products spanning data centers, enterprise networks, 5G, and telecommunications. The company went public on Nasdaq in 2000, with its 4G LTE chips previously ranking among the top three globally in shipment volume.
In March, Nvidia announced a strategic partnership with Marvell and invested $2 billion in the company. Nvidia connected Marvell to its AI factory and AI-RAN ecosystem through NVLink Fusion, with both companies collaborating on silicon photonics technology.
On May 27 after market close, Marvell released financial results for its first quarter of fiscal year 2027 ending May 2. Revenue reached a record $2.418 billion, up 28 percent year-over-year.
The company's data center business posted revenue of $1.833 billion in the first quarter, up 27 percent year-over-year and accounting for 76 percent of total revenue. Murphy stated on the earnings call: "Our data center business is extremely strong, with exceptionally robust orders."
Data center interconnect (DCI) represents Marvell's largest data center business segment, with annual growth rates repeatedly revised upward over recent quarters to exceed 70 percent. Murphy expressed confidence, stating: "I believe there is significant upside here."
For its custom chip (Custom/XPU) business, Marvell projected fiscal year 2027 revenue growth exceeding 20 percent year-over-year, with expectations to double in fiscal year 2028 and surpass $10 billion in fiscal year 2029.
Optical Communication Stocks Rally Across Sector
Multiple semiconductor companies saw stock gains this week amid renewed AI enthusiasm and positive news. Memory chip manufacturer SK Hynix announced plans to double wafer production capacity over five years to ease supply constraints. STMicroelectronics (ST) nearly doubled its 2026 data center business revenue forecast and indicated potential for another doubling next year. Arm CEO Rene Haas stated the company will reach its $15 billion semiconductor sales target earlier than expected due to strong AI-driven demand.
Optical communication stocks have sustained gains throughout the year. Optical communication uses light signals for information transmission, offering high speed, large capacity, low loss, and strong interference resistance. As Huang noted, connectivity capability has become a critical constraint on data center computing power as AI models grow increasingly complex.
Optical modules, which perform optical-to-electrical conversion in data centers, are viewed as the most explosive segment in AI investment with deep technical moats. Sector leaders Coherent and Lumentum have both doubled in stock price this year. Corning, the dominant global fiber optic cable manufacturer, has gained over 120 percent year-to-date.
The optical network ecosystem also includes equipment suppliers such as optical communication systems component manufacturer Fabrinet (NYSE: FN), optical network systems company Ciena (NYSE: CIEN), and optical network testing equipment provider Viavi Solutions (Nasdaq: VIAV).
Digital signal processing (DSP) chips represent the most expensive and technically sophisticated component in optical modules, preventing signal distortion during transmission. As leading providers of custom AI chips (ASIC) and high-speed network connectivity chips, Broadcom and Marvell are experiencing explosive growth.
Gary Black, partner and Chief Investment Officer at The Future Fund LLC, stated that market enthusiasm is expanding from pure computing power (GPUs) to connectivity and networking, with ASIC market size severely underestimated. As major cloud service providers accelerate AI chip development to reduce costs, Broadcom and Marvell as chip design partners and network architects will see revenue growth exceed expectations.
Bank of America Raises Target Prices for Ciena and Cisco
Institutions broadly view the optical communication sector as entering a revaluation phase. UK financial investment firm EBC noted that Coherent is no longer viewed as a cyclical photonics component supplier but as a critical bottleneck for AI data center connectivity. As AI cluster scale expands, optical link value is gaining prominence. The test for Coherent will be achieving scale in AI optical technology without excessive inventory, equipment, and working capital requirements.
Bank of America recently raised target prices for Ciena and network equipment company Cisco (Nasdaq: CSCO). Analyst Tal Liani noted that global optical network market growth is demonstrating strong resilience, with both companies "positioned to maintain market share leadership in this rapid optical communication growth cycle."
FAQ
What did Jensen Huang say about Marvell on June 2?
At COMPUTEX 2026 on June 2, Nvidia CEO Jensen Huang publicly stated that Marvell is destined to become the next trillion-dollar company, praising its high-speed optical connectivity technology and network chips as critical to AI data center infrastructure where computing tasks are distributed across thousands of interconnected chips requiring rapid data sharing.
How much did Marvell stock gain on June 2?
Marvell stock (Nasdaq: MRVL) surged 32.52 percent on June 2 to close at $290.79, marking the company's largest single-day gain since 2000. Market capitalization reached $254.38 billion with a single-day increase exceeding $62 billion, bringing year-to-date gains to 225.30 percent.
What were Marvell's Q1 FY2027 financial results?
For the first quarter of fiscal year 2027 ending May 2, Marvell reported record revenue of $2.418 billion, up 28 percent year-over-year. Data center business revenue reached $1.833 billion, up 27 percent year-over-year and accounting for 76 percent of total revenue, driven by strong AI-related orders.
