NVIDIA’s NVDA endorsement sent shares of Marvell Technology MRVL and Navitas Semiconductor NVTS soaring yesterday. Marvell stock surged after NVIDIA CEO Jensen Huang called the company the "next trillion-dollar company" at the Computex conference in Taipei. Meanwhile, Navitas received a major boost after NVIDIA showcased its power-delivery technology as part of the AI Factory MGX Ecosystem.
Investors have rushed into both names, pushing MRVL and NVTS up more than 250% and 330%, respectively, year to date. But after such spectacular gains, do the stocks’ fundamentals justify the hype? And which stock has more going for it now?
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Marvell's AI Infrastructure Story Looks Compelling
Huang highlighted Marvell's growing importance in artificial intelligence (AI) infrastructure, particularly its networking and connectivity solutions that help power next-generation AI data centers. As AI models become larger and more complex, moving data quickly between thousands of chips has become just as important as computing power itself. Marvell sits at the center of this trend.
The company has been strengthening its position in AI networking, optical interconnects, and custom silicon solutions. Earlier this year, NVIDIA validated Marvell's strategic importance through a $2 billion investment, deepening the relationship between the two companies.
The financial outlook also supports much of the optimism. Marvell recently raised its fiscal 2027 revenue guidance and now expects sales to grow approximately 40% year over year to nearly $11.5 billion. AI demand remains the primary growth driver, with management reporting exceptionally strong AI-related bookings.
One of Marvell's most attractive businesses is its interconnect segment, which the company expects to grow more than 70% in fiscal 2027. As hyperscalers build larger AI clusters, demand for high-speed, low-latency networking solutions is increasing rapidly.
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Marvell Technology, Inc. price-consensus-eps-surprise-chart | Marvell Technology, Inc. Quote
Navitas Is a Higher-Risk AI Infrastructure Bet
NVIDIA’s showcase of Navitas' 800V-to-6V DC-DC power delivery platform at Computex strengthens the company's credibility within the AI ecosystem.
Navitas is also benefiting from the rapid buildout of AI infrastructure. The company is undergoing a transformation through its "Navitas 2.0" strategy, shifting away from slower-growing consumer and mobile markets toward AI data centers, grid infrastructure, industrial electrification and high-performance computing.
This strategic pivot has resonated strongly with investors, particularly as power efficiency becomes a critical challenge for AI data centers. Navitas believes the AI data-center market alone could represent a $1.4 billion to $2.5 billion serviceable market opportunity by 2030. Adoption of gallium nitride (GaN) and silicon carbide (SiC) technologies is expected to grow at an impressive pace throughout the decade.
What makes Navitas particularly interesting is its exposure to both GaN and SiC technologies. These advanced power semiconductors are increasingly being used to improve efficiency and reduce energy losses in data centers, electric grids, renewable energy systems and industrial applications.
Navitas Semiconductor Corporation Price, Consensus and EPS Surprise
Navitas Semiconductor Corporation price-consensus-eps-surprise-chart | Navitas Semiconductor Corporation Quote
NVTS vs. MRVL: Scale, Profitability and Valuation
Both Marvell and Navitas are positioned to benefit from the massive wave of AI infrastructure spending. However, there is a significant difference between the two when it comes to scale, profitability and valuation.
Marvell already has an established business generating billions of dollars in annual revenues. MRVL’s data center revenues came in at $1.83 billion in the last reported quarter. It is also profitable and has clear visibility into future growth as hyperscalers continue expanding AI data centers. That said, Marvell's profitability remains sensitive to product mix as newer data-center platforms ramp up.
Navitas, by contrast, is still in the early stages of its growth story. While the company is targeting large opportunities in AI data centers, grid modernization, renewable energy, and industrial electrification, its current revenue base remains too small. For the second quarter of 2026, Navitas expects revenues of just $10 million. NVTS continues to operate at a loss as it invests aggressively in product development and customer acquisition. Management has indicated that quarterly revenues likely need to reach the high-$30 million range before the business can achieve operating profitability or break even.
Valuation further highlights the contrast. Navitas currently trades at roughly 129 times forward 12-month sales, far above Marvell's multiple of around 20. While both stocks are trading at a premium to the industry’s P/S of 10X, Navitas’ insane premium suggests investors are pricing in years of rapid growth and successful execution with no missteps.
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Marvell's valuation is also elevated, but it is backed by a much larger revenue base, stronger earnings profile and a more established position within the AI ecosystem. While the stock is not cheap, investors are paying for a business that is already benefiting meaningfully from AI spending rather than one that is still working to fully commercialize its opportunity.
Last Word
Between the two, Marvell clearly has the stronger investment case today. The company already occupies a critical position in the AI infrastructure stack and is generating the revenue growth needed to support its premium valuation. Navitas undoubtedly has exciting long-term potential, but its stock price appears to be running far ahead of the business itself. At current levels, investors are paying for a best-case scenario. Marvell also carries some valuation risk, but unlike Navitas, it has the scale, earnings power and execution track record to justify investor confidence.
While NVTS stock carries a Zacks Rank #4 (Sell), MRVL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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This article originally published on Zacks Investment Research (zacks.com).
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