Cramer says Marvell's surge on Jensen Huang's $1 trillion prediction is concerning. Here's why

Published Tue, Jun 2 202611:52 AM EDT

Key Points

Jim Cramer said Marvell' rally after Nvidia CEO Jensen Huang called it the "next trillion-dollar company" is concerning.
While he remains bullish on Marvell and CEO Matt Murphy, he cautioned against chasing the growing euphoria around artificial intelligence stocks that surge without fundamental drivers.

CNBC's Jim Cramer said the sharp rally in Marvell Technology shares Tuesday following comments from Nvidia CEO Jensen Huang is concerning. "I don't like that," Cramer said on "Squawk on the Street." "These are big moves, and they're not based on anything other than one person saying it." Shares of Marvell surged 26% Tuesday after Huang called the chipmaker the "next trillion-dollar company" while appearing alongside Marvell CEO Matt Murphy at the Computex conference in Taiwan. Marvell ended Monday with a market cap of roughly $192 billion. Nvidia took a $2 billion stake in Marvell in March. While Cramer remains bullish on Marvell and has long praised Murphy's leadership, he questioned whether the stock's move was supported by any meaningful new developments. "Doesn't that make you feel maybe things are a little too euphoric?" Cramer asked co-host David Faber. Cramer said the market's reaction illustrates how quickly investors are rewarding AI-related stocks, even in the absence of new fundamental information. While he stopped short of comparing today's AI leaders to the speculative companies of the dot-com era, he suggested that rallies driven largely by excitement can be unsettling. This isn't the first time Huang's comments have proven to be market-moving. In January 2025, quantum computing stocks tumbled after Huang suggested useful quantum computers were 15 years to 30 years away. He has since backed away from those comments and said in June 2025 that quantum was "reaching an inflection point." Speaking generally, Cramer said executives should be careful not to fuel the growing exuberance surrounding their stocks. They've "got to be a little more humble right now," Cramer said. Despite his concerns, Cramer emphasized that his issue was with the stock's reaction, not Marvell and Murphy, a frequent guest on Cramer's evening program "Mad Money." Murphy has been CEO since July 2016, with shares rising over 2,700% in his tenure versus a roughly 450% advance for the tech-heavy Nasdaq Composite . "No one is a bigger fan of Marvell and Matt Murphy than I am, until I came in today and discovered Jensen is," Cramer said.