COMPUTEX 2026》Jensen Huang Takes the Stage as Marvell’s Stock Hits a New High—Is It Still a Good Time to Get In?

Chipmaker Marvell gains from NVIDIA's Jensen Huang appearing at COMPUTEX 2026, with stock reaching a new all-time high. The company has successfully transformed its data center business, integrating optical technology with NVIDIA's NVLink. However, analysts warn that its high P/E ratio may conceal potential correction risks.

The Taipei International Computer Show (COMPUTEX 2026) officially opened today. Marvell Technology (NASDAQ ticker: MRVL) CEO Matt Murphy stated in a keynote speech that the future expansion of artificial intelligence will depend on connectivity technology.

This speech was supported on stage by NVIDIA CEO Jensen Huang and ASE Technology Holding COO Wu Tianyu. Huang expressed optimism about Marvell's market value growth potential. Inspired by this news, Marvell's stock rose 7.04% before press time, hitting a new all-time high.

• Related Report: COMPUTEX 2026 Concept Stock Guide: Jensen Huang's RTX Spark, Liquid Cooling, and Physical AI Supply Chain at a Glance

Business Transformation Drives Significant Revenue Growth

Looking back at Marvell's development, the company's revenue was $2.3 billion in 2016. Over the next five years, revenue increased to $4.5 billion, and in the following five years, it reached $11.4 billion. With recent business progress, it is estimated that next year's revenue could reach $16.4 billion.

This growth is mainly due to business transformation. In the early days, data center business accounted for less than 10% of revenue. Now, this segment accounts for over 75%, indicating the company has successfully shifted to a data center-centric chipmaker.

Connectivity Bottlenecks Drive Optical Technology Demand

In recent years, the semiconductor industry has overcome limitations in computing power and memory. However, the current technical bottleneck in AI development has shifted to connection efficiency between components and systems.

From traditional copper transmission to optical technology, this has become a necessary trend to increase bandwidth and reduce latency. This shift in transmission technology is Marvell's core competitive advantage and also forms the technical foundation of its deep collaboration with NVIDIA two months ago.

Marvell Integrates NVIDIA NVLink Fusion, Jensen Huang Highly Recommends

This year, Marvell has become one of the focal points in the semiconductor market, with its stock rising over 130% since the beginning of the year, hitting a record high. According to the company's latest Q1 FY2027 financial report (as of May 2), quarterly net income reached $2.4 billion, a 28% year-over-year increase.

Management estimates that driven by continued growth in the data center business, this quarter's revenue could reach $2.7 billion, with a year-over-year growth rate of 35%. Additionally, the integration of the company's products with NVIDIA's rack-level platform NVLink Fusion is expected to bring more market opportunities. Huang personally endorsed this at Computex.

Marvell Financial Performance Analysis

Although the deepening collaboration with NVIDIA has heightened market expectations for Marvell’s growth prospects, recent consecutive record-high stock prices have also sparked discussions about whether valuations are too high. Wall Street analysts point out that the current P/E ratio is about 70, and even based on projected earnings for the next year, it remains above 50.

Compared to the S&P 500 index average P/E of 26, Marvell's premium is significantly high. Analysts warn that high valuations imply lower investor margin of safety, and the potential correction risk at this stage is relatively high.

• This article is reprinted with permission from: Chain News
• Original title: "Jensen Huang Says Marvell Is the Next Trillion-Dollar Company, Stock Soars to a New High. Is It Still a Good Entry?"
• Original author: DW