Marvell stock soars as Nvidia CEO calls chipmaker 'the next trillion-dollar company'

What happened: Marvell Technology ( MRVL ) stock was poised to open 17% higher on Tuesday after Nvidia ( NVDA ) CEO Jensen Huang called the custom chipmaker “the next trillion-dollar company."

What’s behind the move: Huang’s comments made at Computex week in Taipei sent shares soaring as he appeared onstage alongside Marvell CEO Matt Murphy.

After taking the stage Huang said "Ladies and gentlemen, the next trillion-dollar company" in reference to Marvell.

The custom chipmaker’s market cap sat just under $192 billion at last close, still a long way from $1 trillion.

Last month memory chip makers Micron Technology ( MU ), Samsung Electronics ( 005930.KS ) and SK Hynix ( 000660.KS ) all made headlines as they topped valuations of $1 trillion for the first time.

What else you need to know: Marvell designs optical networking chips and custom AI accelerators, commonly called XPUs. The company has built silicon for cloud giants such as Microsoft ( MSFT ) and Amazon ( AMZN ).

Nvidia announced a strategic partnership with Marvell earlier this year, along with an investment of $2 billion.

Marvell last week projected its custom chip business would cross $10 billion in revenue by fiscal 2029, fueled by growing AI data center investment.