ARM and Marvell Shares Still Worth Buying After 250% Gains?

ARM and Marvell shares have been among the standout performers of 2026, each up more than 250% since January, and the question facing investors now is a familiar one after any extended rally: how much runway is left?

The arithmetic of the run-up is straightforward enough. A £10,000 stake in each stock at the start of the year would be worth £36,200 today, and the calendar has not yet turned to the second half. Both companies, valued at $447 billion (Arm Holdings) and $253 billion (Marvell Technology) respectively, have been carried by the same broad current: an explosion in AI infrastructure spending on data centres, networking, and the chips that underpin increasingly demanding AI models.

Jensen Huang, a $2 Billion Bet, and a Trillion-Dollar Target

The single event that crystallised Marvell’s momentum came on 2 June at the Computex trade show in Taipei. Marvell CEO Matt Murphy had invited Nvidia chief Jensen Huang on stage to discuss the two companies’ strategic partnership. Huang, unprompted, interrupted Murphy mid-event. ‘The next trillion-dollar company, ladies and gentlemen,’ he said, according to Forbes. MRVL closed the day up 32%, per CNBC; the Motley Fool reported the stock up 27% intraday with a market cap of $234 billion at that point, reflecting the difference between intraday and closing readings.

The endorsement did not arrive in isolation. Nvidia had already committed a $2 billion investment into Marvell as part of a broader strategic partnership announced in March. For context on what Huang’s trillion-dollar framing might mean in practice: Nvidia itself carried a market cap of $323 billion at the start of 2020 and did not cross the $1 trillion threshold until May 2023. The company’s valuation now exceeds $5 trillion. That trajectory took more than three years even during one of the most aggressive technology bull markets on record.

On the operating side, Marvell posted $2.4 billion in revenue for the first quarter of fiscal year 2027 (the quarter ended 2 May 2026), beating analyst estimates on the back of data centre strength. The company guided for approximately $2.7 billion in revenue for the second quarter of fiscal 2027, plus or minus 5%, against $2 billion in the year-ago quarter. That kind of sequential step-up underpins the bull case, provided AI infrastructure capital expenditure holds.

ARM and Marvell Shares: What the Valuation Risk Actually Looks Like

Arm Holdings operates differently from Marvell but draws on the same AI spending wave. According to Arm’s investor relations, the company’s CPU products have been deployed in more than 350 billion chips to date, appearing in over 99% of smartphones, with 22 million-plus software developers on its platform. The Cambridge-based chip designer reported record results for its fourth quarter and full fiscal year ended 31 March 2026, driven by AI and data centre demand. At Computex, ARM CEO Rene Haas also invited Huang on stage, and Nvidia separately revealed the RTX Spark, its first fully integrated chip for Windows laptops and desktops, built on an ARM-based CPU and designed to run personal AI agents.

The valuation risk is real, and it is higher for ARM than for Marvell. Both stocks have absorbed enormous forward expectations. Arm’s licensing revenue is concentrated among a relatively small group of customers; if key partners slow orders or develop competing architectures, the revenue cadence breaks quickly. Marvell’s exposure is spread more broadly across training infrastructure and networking, which offers some diversification within the AI theme, and the 17% return on capital employed suggests disciplined capital allocation. Neither is a cheap stock by conventional measures.

There is also a leadership transition at Marvell to factor in. CFO Willem Meintjes, who had held the role since January 2023, notified the company on 10 June 2026 of his resignation, effective 15 June 2026. The board moved quickly: Daniel Durn, previously Chair of the Audit Committee and formerly CFO at Adobe, was appointed CFO on the same effective date, per Marvell’s SEC 8-K filing. Durn’s annual base salary is set at $850,000, with a target annual incentive bonus of 120% of that base and a one-time cash sign-on bonus of $1,000,000. CFO transitions at this stage of a growth story warrant watching, though the board’s rapid internal appointment limits uncertainty.

At ARM Holdings, CFO Jason Child sold 21,280 shares at $180.00 per share on 22 April 2026 under a pre-arranged Rule 10b5-1 plan, a scheduled disposal rather than a discretionary signal, though it registered against a stock that had already moved substantially.

The AI adoption cycle does appear to be in early innings, and both companies occupy positions in the infrastructure stack that are genuinely difficult to displace. The next test is whether Q2 FY2027 revenue at Marvell lands in line with that $2.7 billion guide; any miss at this valuation would reprice the stock quickly. For ARM, the watch is on licensing renewal rates as the next fiscal year unfolds. Position sizing matters more than ever here.