Marvell Technology (MRVL) ripped higher this morning as Nvidia’s chief executive Jensen Huang signalled the company could be “the next trillion-dollar opportunity” at the Computex conference in Taipei.
According to Cantor Fitzgerald’s senior managing director, CJ Muse, however, Huang’s comment was more cheerleading than forecast – and investors hunting for real AI upside should be looking elsewhere.
That said, Marvell stock has been a blockbuster investment in 2026, currently up an exciting 300% versus its year-to-date low in early February.
Why CJ Muse is more cautious on Marvell stock
Muse does not dispute MRVL’s standing in the overall artificial intelligence ecosystem.
Speaking with CNBC, he acknowledged the firm’s critical role in custom silicon and interconnect technology, the plumbing that governs how AI workloads scale both within data centers and across distributed systems.
In Q1, Marvell’s data center business drove about 76% of its total revenue, underscoring “genuine” operational momentum.
But momentum and a trillion-dollar market cap are two different things – and the math narrates a sobering story, Muse argued during the interview.
MRVL market cap stood at just under $192 billion heading into Tuesday, meaning a trillion-dollar valuation would demand a “five-fold” increase, a massive leap that Muse was blunt in calling out.
He called Huang “a great cheerleader” whose strategic bets have been spectacular – but described the trillion-dollar framing as “a little more aspirational and figurative, not literal.”
Muse sees Nvidia stock as a better pick than MRVL
Interestingly, while the market scrambles to find the next Nvidia, Muse contends the original is still being overlooked.
He dubbed NVDA “the obvious name left for dead in AI” – a counterintuitive tag for a company with a market cap of about $5.4 trillion.
The crux of his case is valuation compression: as earnings exploded, the stock has not kept pace, leaving the multiple lower than historical norms.
Muse’s projection of up to $16 in earnings next year would place NVDA shares at just 14x forward earnings at the current price – a figure he said is below everything else in semiconductor coverage, barring memory names like Micron.
In short, for a business still at the absolute center of the AI infrastructure buildout, that’s a valuation anomaly worth taking seriously.
Technicals also warrant selling MRVL shares
Investors should note that technicals seem to agree with Muse’s cautious view on Marvell stock as well.
While the company sits decisively above its key moving averages (MAs), its relative strength index – following today’s rally – has climbed into the mid-80s, signaling an extremely overbought condition that often triggers a near-term pullback.
Wall Street more broadly also believes MRVL’s year-to-date surge is a bit “overdone”.
While the consensus rating remains at “strong buy”, the mean price objective of about $225 signals potential for more than 20% downside from here.
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