MRVL +0.89% NVDA +0.37% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Earlier this year, Nvidia CEO called Marvell Technology (NASDAQ:MRVL) the next trillion-dollar business. At around $230 billion, Marvell is a fraction of the size of Nvidia, whose market cap is well over $5 trillion. But the business has been doing exceptionally well, and its share price is up around 200% this year.
Recently, Marvell's management gave investors more reasons to remain bullish, revealing some promising guidance for the future.
Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Artificial intelligence (AI) has unlocked massive growth opportunities for Marvell, as it has for other tech companies. In its most recent fiscal year, which ended in January, the company's revenue totaled $8.2 billion, which was up an impressive 42% year over year.
However, in the longer run, by fiscal 2031, management expects revenue to be around $80 billion. With a significantly larger business, it's not difficult to see why Huang is so bullish about Marvell's upside. At about 10 times the size, its valuation could conceivably be 10 times larger as well, which could lead to Marvell blowing past the $1 trillion mark on the way to $2 trillion.
The assumption, of course, is that it continues to trade at multiples similar to those it trades at today and that its margins are comparable. But with so much growth on the horizon, there is clearly a lot of upside for Marvell's stock.
As demand for custom chips grows due to AI, Marvell is in an excellent position to benefit from those growth opportunities. Its valuation is elevated today, with the stock trading at close to 90 times its trailing earnings, but the company's recent forecast highlighted why it may still be worth buying. With so much more growth in the long run, there's reason to remain bullish that, although the stock may look pricey right now, its valuation may still rise a lot higher in the future.
The caveat, however, is that in five years, a lot could change with respect to AI and the broader tech sector. There may be more competition as well. There's always going to be some risk when looking that far out, as forecasts can change. And that's something investors should consider.
Marvell's stock isn't cheap, and it does price in a lot of future growth already, but for investors who are prepared to hang on for at least five-plus years, this may be one of the better tech stocks to buy right now.
Before you buy stock in Marvell Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marvell Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,390,634!*
Now, it's worth noting Stock Advisor's total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology and Nvidia. The Motley Fool has a disclosure policy.
Marvell Technology Just Gave Its Investors Great News was originally published by The Motley Fool
