Today’s most important news: Artificial intelligence stocks rise, with Hewlett-Packard shares rising 25% and Marvell shares rising 30%

TLDR

• Shares of Hewlett Packard Enterprise rose more than 25% after it beat earnings expectations and raised its outlook on strong demand for artificial intelligence servers.
• Marvell Technology exploded nearly 30% after Nvidia CEO Jensen Huang suggested the company could become a trillion-dollar company.
• Nvidia shares have remained near record levels as the company continues to dominate spending on AI hardware and infrastructure.
• Super Micro Computer rose alongside HPE, with investors viewing both as major beneficiaries of growing demand for AI servers.
• Both the S&P 500 and Dow Jones indices approached new highs as artificial intelligence and semiconductor stocks led the market higher.

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Wall Street had a strong session on Tuesday, driven almost entirely by artificial intelligence. Three stocks dominated the conversation: Hewlett Packard Enterprise, Marvell Technology, and Nvidia. Each told a different part of the same story: AI spending is accelerating, and investors want it.

HPE announces huge profits, and its shares rise by 25%

Hewlett-Packard Company It was the biggest engine of the day.

The company announced quarterly results that exceeded analysts’ expectations in terms of revenues and profits. Importantly, management raised its outlook, citing high demand for AI server infrastructure from enterprises and cloud service providers.

Investors responded immediately. Shares jumped more than 25% after the news.

HPE’s AI systems business has become its most important growth driver. The company said orders for AI-related infrastructure continued to accelerate during the quarter, a sign that corporate spending on AI is not slowing down.

The results also lifted other server-related stocks. Dell Technologies and Super micro computer Both rose as investors read HPE’s numbers as a positive sign for the entire AI hardware market.

Super Micro has been one of the biggest winners in the AI ​​space over the past couple of years. Its ability to quickly deliver dedicated server systems powered by Nvidia technology has helped it win business from cloud providers and large enterprises.

Marvell stock rose 30% following Jensen Huang’s comments

Marvell technology It was a bigger day on a percentage basis.

Shares jumped nearly 30% after Nvidia CEO Jensen Huang said Marvell could one day become a trillion-dollar company. The comment was enough to reignite investor enthusiasm around the stock.

Marvell makes networking chips and custom AI accelerators used by major cloud providers. Its business has grown rapidly as large-scale data centers expand their AI infrastructure.

Investors have already seen Marvell as a long-term winner in the AI ​​space. Hwang’s comments gave high-level support to this view.

Nvidia itself continued to trade near record levels. The company recently unveiled its RTX Spark AI PC chipset platform and remains the central supplier of AI hardware to data centers around the world.

Many analysts now describe Nvidia as more than just a chipset company. Its hardware, software, and AI ecosystem have made it the platform on which much of the global AI economy operates.

Markets are heading towards record levels

The broader market benefited from all this enthusiasm.

the Standard & Poor’s 500 and Dow Jones Industrial Average The two averages approached new record levels by the end of the day. Semiconductor stocks were among the best performers in the entire market.

Some analysts have raised questions about whether AI-related valuations have gone too far. But bullish investors pointed to strong earnings and accelerating AI spending as justification for the current prices.

For now, the market’s message is clear. Spending on AI infrastructure is growing, companies exposed to this trend are outperforming expectations, and investors are willing to pay a price for this growth.