On a recent episode of 'Squawk on the Street,' Jim Cramer highlighted the significant increase in Marvell Technology's stock price, which rose 26% after Jensen Huang referred to the company as the 'next trillion-dollar company' during the Computex conference.
Cramer noted that while he respects Marvell and its CEO Matt Murphy, the stock's sharp rise appears to be driven more by excitement than by substantial news or developments. He cautioned that this kind of market reaction could indicate an overly euphoric sentiment among investors, particularly in the AI sector.
Cramer also recalled past instances where Huang's comments had a notable impact on market movements, emphasizing the need for executives to temper their statements to avoid inflating stock prices based on hype.
Despite his reservations about the stock's reaction, Cramer reiterated his admiration for Marvell and its leadership, acknowledging the impressive performance of the company's shares under Murphy's tenure