U.S. stock market trend: a single sentence from Jensen Huang sparks $47.0 billion, as Google “sells itself” for the first time in 20 years to raise funds

Writing: Trend Research

The AI arms race has shifted from "whose chips are stronger" to "who can turn money into computing power the fastest."

On June 2nd, the market saw both sides of this coin: Huang Renxun casually mentioned at Computex Taipei, causing Marvell's market value to soar by $47 billion in a day; meanwhile, Alphabet was forced to issue new shares for the first time in 20 years, raising $80 billion, simply because current profits can no longer satisfy the appetite for AI infrastructure.

One is worshiped on stage, the other is selling blood behind the scenes. This is the true face of the tech industry in 2026.

Indexes close higher across the board: the three major indices hit new highs

On Tuesday, the S&P 500 closed at 7,609.78 points, up 0.13%, marking the first time in history surpassing 7,600 points. The Dow Jones rose 229 points to 51,307.79 (+0.45%). The Nasdaq edged up 0.03% to 27,093.90 points, also hitting a record.

But the most eye-catching are not the blue chips. The Russell 2000 rose 0.90%, the largest gain among the four major indices. The resilience of small caps hints that market confidence in the economic fundamentals is not limited to those trillion-dollar giants.

The S&P 500 has now risen for ten consecutive weeks (including the previous week). The last time such a streak occurred was during the AI rally at the end of 2024.

Semiconductor night: Computex becomes Wall Street’s remote exchange

The semiconductor sector on June 2nd was ignited remotely by Computex Taipei.

Marvell Technology (MRVL): +32.52%, the largest single-day increase in the company's 26-year history.

When Huang Renxun shared the stage with Marvell CEO Matt Murphy at Computex, he threw out six words: "The next trillion-dollar company, ladies and gentlemen."

This is not idle talk. In March this year, Nvidia invested $2 billion in Marvell, acquiring its networking interconnect and custom chip capabilities. Huang Renxun’s logic is straightforward: when a computing task is broken down and executed across thousands of chips in a data center, the "neural network" connecting these chips is just as critical as the chips themselves. Marvell specializes in this neural network.

Based on closing prices, Marvell’s market cap skyrocketed from $192 billion to about $255 billion in one day. Still five times away from the "trillion-dollar club," but the market clearly took Huang Renxun’s words as a roadmap rather than just politeness.

The day before, at Computex’s opening, Huang Renxun announced the RTX Spark super chip, Nvidia’s first-ever PC processor, directly challenging Intel and AMD’s territory. Nvidia’s stock rose 4.8%. By the next day, funds flowed from Nvidia to its "ecosystem members," telling a story: the marginal returns on AI investments are spreading from the "core" to the "periphery."

Hewlett Packard Enterprise (HPE): surged about 25%, the largest single-day gain since listing.

HPE’s Q2 earnings were a typical "full throttle" beat: adjusted EPS of $0.79, versus Wall Street’s expectation of $0.53, exceeding by 49%; revenue of $10.68 billion, versus expected $9.79 billion, up 40% year-over-year. Server revenue was $5.45 billion, nearly 20% above expectations.

More importantly, guidance: HPE raised its full-year EPS forecast from $2.30–$2.50 directly to $3.35–$3.45, a one-dollar increase. CEO Antonio Neri said HPE "is two years ahead of its long-term financial plan."

For years, HPE has been regarded by the market as a "relic of the old era." The significance of this earnings report is that the AI dividend is not only for Nvidia and chip-designing companies; server sellers are also reaping the benefits of the era.

Alphabet sells blood to raise funds: $80 billion issuance behind the anxiety

The biggest catalyst for short sellers that day was Alphabet’s announcement of an $80 billion equity financing plan. The last time Google’s parent company issued new shares was shortly after its 2005 IPO—20 years ago.

The financing will proceed in three steps: Berkshire Hathaway will subscribe at a discount for $10 billion (Class A shares at about $351.81 per share, Class C at about $348.20); $30 billion will be raised through underwriters via public offering (half of which is mandatory convertible preferred stock); another $40 billion will be gradually sold starting in Q3 through "at-the-market" (ATM) offerings in the secondary market.

Alphabet’s reasoning is simple: capital expenditures will exceed $180 billion in 2026, doubling 2025’s figure, and even more in 2027. Even though Google’s advertising and cloud businesses generate over a thousand dollars in cash flow annually, it’s not enough.

On that day, GOOGL fell about 4%. The market’s concern is not that "Google is short of money," but that "AI is burning cash faster than anyone imagined." According to Goldman Sachs estimates, U.S. tech giants will spend about $800 billion on AI-related capital investments in 2026. When even Alphabet needs to dilute shares to finance, investors have to reconsider: is this arms race a winner-takes-all, or will everyone be crushed by capital expenditures?

A banker told Al Jazeera a sharp insight: for mega-scale companies, "under-investment is a survival threat; over-investment is just costly." This accurately captures the current industry mindset: better to burn more money than fall behind.

Sector divergence: AI boosts tech, Alphabet drags down communications

Of the 11 sectors in the S&P 500, 7 rose, 4 declined.

Technology and utilities led the gains. Driven by Marvell and HPE, the semiconductor sub-sector overall strengthened (+5.79% in SOXX). The rise in utilities was somewhat unexpected; after a 4.9% correction in May, some funds started buying on dips.

The communication services sector was the weakest that day, entirely dragged down by Alphabet. Alphabet’s weight in the S&P 500 communication sector is too large; when it falls, the entire sector struggles to rebound.

The financial sector declined slightly. Despite the market reaching new highs, bank stocks are waiting for guidance from Friday’s non-farm payrolls and JOLTS job openings data.

Market sentiment: fear gauge low but underlying currents brewing

The VIX volatility index remains in the 15–16 range, near its low for the year, suggesting a peaceful surface. The 10-year U.S. Treasury yield rose slightly to 4.46%, up 1 basis point from the previous day.

But two signals warrant caution:

First, Julian Emanuel of Evercore ISI pointed out that "record concentration in AI names is boosting the index while masking the side effects of challenging geopolitical and consumer backgrounds." Stocks like Micron, Nvidia, and Alphabet contributed over 40% to this year’s EPS revisions of the S&P 500. The index’s strength and the performance gap among most stocks are clearly divergent.

Second, geopolitically, Iran announced on Computex’s opening day that it would suspend indirect talks with the U.S., protesting Israel’s military actions in Lebanon. Oil prices spiked intraday, though Trump later said on Truth Social that negotiations were still "progressing rapidly." The Middle East situation remains a Damocles sword hanging over the market.

Post-market focus: Palo Alto Networks’ earnings beat expectations

Palo Alto Networks (PANW) rose over 8% after hours. The company reported Q1 results exceeding analyst expectations, reaffirming the resilience of cybersecurity spending. This is a positive signal for the tech sector opening Wednesday.

Another major event upcoming: Broadcom (AVGO) will release its Q2 earnings on June 3rd (Wednesday). As another key player in custom AI chips, Broadcom’s performance will directly test whether "demand for AI chips is still accelerating," the market’s most concerned question.

This week’s calendar: Non-farm payroll data will determine the next market move

Before Tuesday’s open, April JOLTS job openings data will be released, expected to remain around 6.8 million. But the real showdown is on Friday with the May non-farm employment report.

Market expectations for Federal Reserve policy are subtly shifting. With inflation still high, the probability of rate hikes by year-end exceeds 60%. If the non-farm data is strong, U.S. bond yields could rise further, putting pressure on high-growth stocks that rely on low interest rates.

But for now, the market’s choice is: ignore rates for now, chase AI.