Marvell Technologies (MRVL) shares surpassed the $300 level in extended hours on June 2 after Nvidia’s (NVDA) chief executive Jensen Huang said the custom AI chips firm could be “the next trillion-dollar opportunity."
The upward momentum drove MRVL’s relative strength index (RSI) into the mid-80s, indicating overbought conditions that often trigger a near-term pullback.
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Marvell stock has been a lucrative investment in 2026 – currently up a remarkable 230% year-to-date.
www.barchart.comCan Marvell Stock Really Soar That Much?
Responding to the trillion-dollar comment in a CNBC interview, Cantor Fitzgerald’s senior analyst CJ Muse cautioned investors against mistaking Huang’s enthusiasm for a valuation roadmap.
According to him, the comment was more “aspirational and figurative, than literal.”
Muse acknowledged Marvell’s momentum in custom silicon and interconnect technology, but said translating that momentum into a trillion-dollar market cap is not a small feat.
After all, MRVL’s market cap stood at just under $200 billion ahead of Huang’s comment; joining the trillion-dollar club would, therefore, require the company’s valuation to effectively quintuple from recent levels.
In short, Muse’s view on Marvell shares’ artificial intelligence credentials remains intact; the skepticism is directed squarely at the framing — not the fundamentals.
MRVL Shares Are Trading at a Premium to NVDA
As is evident, part of Muse’s caution in Marvell shares is rooted in valuation.
At the time of writing, the firm is trading at a forward price-to-earnings (P/E) multiple of about 67x, which means it’s trading at a significant premium to the best-of-breed AI stocks like Nvidia.
Investors should also note that insiders have predominantly trimmed their stake in MRVL over the past three months, indicating even management likely views its year-to-date rally as “overdone.”
Moreover, Marvell has a history (since 2010) of closing June with less than 2% gain on average — a seasonal pattern that suggests it may pare back some of its recent gains in the weeks ahead.
Marvell’s 2026 Rally May Be Overdone
Other Wall Street analysts also share CJ Muse’s skepticism about MRVL stock.
While the consensus rating on Marvell Technology sits at “Strong Buy,” the mean price target of about $225 signals a potential downside of 25% from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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