Important points
CNBC’s Jim Cramer said it was concerning that Marvell Technology stock soared on Tuesday following comments from Nvidia CEO Jensen Huang. “I don’t like it,” Kramer said on “Squawk on the Street.” “These are big moves, and they’re not based on anything other than what one person is saying.” On Tuesday, Marvel shares rose 26% after Mr. Huang appeared with Marvel CEO Matt Murphy at the Computex conference in Taiwan and called Marvel “the next trillion-dollar company.” Marvell closed Monday with a market capitalization of about $192 billion. Nvidia acquired a $2 billion stake in Marvell in March. Mr. Cramer remains bullish on Marvell and has long praised Mr. Murphy’s leadership, but questioned whether the stock’s price movement was supported by meaningful new developments. “Doesn’t that sound a little too high-handed?” Kramer asked co-host David Faber. Cramer said the market reaction shows how quickly investors are rewarding AI stocks despite the lack of new fundamental information. Although he stopped short of comparing today’s AI leaders to the speculative enterprises of the dot-com era, he suggested that rallies driven primarily by excitement can lead to anxiety. This is not the first time that Hwang’s comments have proven to move markets. Quantum computing stocks fell in January 2025 after Huang suggested that a useful quantum computer was 15 to 30 years away. He has since retracted those comments, saying quantum will “reach an inflection point” in June 2025. Generally speaking, Mr. Kramer said, executives should be careful not to inflame the growing frenzy surrounding their company’s stock. They “need to be a little more humble now,” Kramer said. Despite his concerns, Mr. Kramer emphasized that his problem is not with Mr. Marvel or Mr. Murphy, who frequently appears on Mr. Kramer’s nightly show “Mad Money,” but with the stock price reaction. Mr. Murphy has been CEO since July 2016, and during his tenure, the company’s stock price has risen more than 2,700%, compared to about 450% for the tech-heavy Nasdaq Composite Index. “There’s no one who’s a bigger fan of Marvel and Matt Murphy than I am, until I came here today and found out that Jensen is,” Kramer said.
