At Computex on June 2, Nvidia CEO Jensen Huang unexpectedly took the stage during Marvell CEO Matt Murphy's keynote and praised Marvell's networking chips as essential for AI data centers, calling it a potential trillion-dollar company. The remark drove Marvell shares up 33% in one day, adding about $56 billion in market value and pushing the company above $250 billion. Huang's endorsement followed Nvidia's roughly $2 billion equity investment in Marvell, linking its custom accelerators and optical networking to Nvidia's AI factory architecture. Meanwhile, investor Michael Burry, known from 'The Big Short,' has taken a bearish stance on Nvidia. His firm Scion Asset Management bought put options on one million Nvidia shares. Burry highlighted that Nvidia's top three customers now account for 64% of its accounts receivable, up from 33% in 2020, warning of concentrated demand risk. He described current AI spending as a temporary 'tokenmaxxing bubble' that could fade, and noted hidden financing risks, including $662 billion in future data center lease commitments from major tech companies that are not reflected on balance sheets, according to Moody's. Bulls argue that Marvell's networking and connectivity chips are the next bottleneck in AI systems, with data center products driving most of its revenue. Skeptics point to steep valuation and competition from Broadcom. Additional caution comes from reports of falling H200 rental prices, questioning near-term GPU demand.

Key facts

• Jensen Huang said Marvell could be the next trillion-dollar company, boosting shares 33% in one day.
• Marvell added about $56 billion in market cap after Huang's Computex endorsement.
• Michael Burry bought put options on one million Nvidia shares, warning of customer concentration.
• Top three Nvidia customers account for 64% of accounts receivable, up from 33% in 2020.
• Moody's reports $662 billion in future data center lease commitments from major tech firms.