Nvidia CEO Jensen Huang predicts the next $1 trillion company and that stock jumps 32%

Nvidia CEO Jensen Huang on Tuesday predicted that Marvell Technology Inc., the semiconductor and networking company will become the next business to cross $1 trillion in market capitalization. In response, the stock jumped 32% on Wall Street during regular trade, marking the biggest single-day jump since 2000.

Speaking at the Computex trade show in Taipei, Huang said that Marvell's valuations will now soar given that the age of "useful AI has arrived." Marvell CEO Matt Murphy was also present at the event.

Of course, Nvidia and Huang have their own interests in these remarks. The company had invested $2 billion in Marvell earlier this year as part of a broader partnership.

Marvell's shares jumped 32% on Wall Street, taking its year-to-date gains past 200%, and giving the company a market capitalization of $254.4 billion as of closing.

The surging demand for AI and the data centers needed to train and run models is providing a significant boost to the chip industry. Marvell is among those companies who are benefitting from this surge, adding to their gains before Huang's remarks sent the stock soaring further.

Companies too are doubling down on their capacity expansion plans to capitalize on this soaring demand. SK Hynix, who recently crossed the $1 trillion market cap mark, plans to double memory chip production capacity.

STMicroelectronics NV expects expects sales from data centers to nearly double in 2026 and on that base, expects another doubling in 2027. ARM Holdings Plc expects to hit the $15 billion target in sales for semiconductors earlier than anticipated due to the AI boom.

Shares of Nvidia itself have gained 1,400% since 2023, enroute to the company becoming the most valuable in the world, with a current market capitalization of $5.4 trillion.

Currently, 15 companies are trading above or around the $1 trillion market capitalization mark, and barring Eli Lilly, Saudi Aramco and Berkshire Hathaway, all of the others are related to tech and AI.