Jensen Huang Just Picked the Next Trillion-Dollar Company.
For the past three months, every morning started with the same question: what is Iran doing today? That question has not disappeared. But it has been pushed off the front page by something happening in Taipei.
The focus of the market today is COMPUTEX, Asia’s largest AI expo. On stage, Jensen Huang, CEO of the world’s most valuable company, publicly endorsed Marvell Technology as having the potential to become the next firm to cross a $1 trillion market cap. MRVL surged 29.3% in a single session to $307. That is not a rumor trade. It is a verdict from the one person with the most credibility to give it. When the most powerful name in chips points at a successor, the market moves before lunch.
The second layer is the geography. Huang skipped the state dinner in Beijing for street food, then flew to Taipei for the National Taiwan University commencement, recruiting the engineers who staff TSMC. TSM now sits sixth in the world at $2.3 trillion. Samsung is tenth, SK Hynix thirteenth, both past Berkshire Hathaway. Total world market cap touched $150.9 trillion. Asia is no longer the supporting act. It is where the chips, the engineers, and this week the headlines all live.
The warning is the ninth week. The market has climbed nine straight weeks, breaking the Fibonacci pattern Daniel Yue calls the 9 Flying Daggers, the point where a rally is supposed to retreat. PLTR already pulled back. GOOG formed a mini head and shoulders. The Cleveland Fed called inflation “excessive” with a “worrying trajectory.” Excitement about MRVL is not wrong, but at nine weeks up with a rate warning on the table, beware chasing high.
Watch whether MRVL holds above $260. If it does, the $1 trillion thesis is being taken seriously. If it fades, it was a one-day Jensen trade.
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About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.