Alphabet Sits Out Tuesday's Tech Stock Surge: Stock Market Today
Marvell Technology led the technology sector higher today after Jensen Huang praised the chipmaker.
Stocks got off to a rocky start Tuesday, but another day of strong gains for tech stocks lifted all three main equity indexes higher into the close. Energy stocks also gave a boost to the broader market as oil prices climbed for a second straight day.
At the close, the blue-chip Dow Jones Industrial Average was up 0.5% at 51,307, the broader S&P 500 added 0.1% to 7,609, and the tech-heavy Nasdaq Composite gained 0.03% to 27,093 — new all-time highs.
Meanwhile, amid no new headlines regarding the war in Iran, front-month West Texas Intermediate crude futures rose more than 1% to settle at $93.69 per barrel.
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This helped boost several energy stocks, including Chevron (CVX, +0.9%) and Exxon Mobil (XOM, +0.1%).
Jensen Huang calls Marvell the "next trillion-dollar" stock
Marvell Technology (MRVL) was the best-performing S&P 500 stock today, surging 32.5% after Nvidia (NVDA, -0.7%) CEO Jensen Huang said he believes the chipmaker will be the "next trillion-dollar company."
Speaking at the Computex 2026 AI exhibition, Huang said that Marvell's networking and computing chips are essential to connecting all the pieces across data centers.
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"We've distributed and disaggregated computing so that it runs across these enormous clusters, so that we could get aggregating the total compute, the total memory, the total bandwidth that we have, and what makes it possible is connectivity," Huang added.
In late March, MRVL shares surged after Nvidia disclosed a $2 billion stake in the semiconductor stock — and longer term, it's up nearly fourfold in the past 12 months. But its current market cap is just above $254 billion, meaning its share price would need to quadruple to reach that $1 trillion mark.
Alphabet sinks on $80 billion stock offering
Not all AI stocks were higher today, though. Alphabet (GOOGL), which is technically a communication services stock, slumped 3.9% after the Google parent said it will raise $80 billion through an equity offering to fund its AI capital expenditures budget for this year and next.
GOOGL also said that it will sell $10 billion of Class A common stock and Class C capital stock (ticker: GOOG) to Berkshire Hathaway (BRK.B) at a discount to where both are currently trading.
"Alphabet intends to use the net proceeds from the concurrent underwritten public offerings and the concurrent private placement for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute," the company explained in its press release (PDF).
In April, Alphabet raised its 2026 capex guidance to $180 billion to $190 billion and said it expects its 2027 spending to reach similar levels.
Alphabet's announcement "is raising concerns about high AI-related expenses against the backdrop of uncertain profitability profiles," says José Torres, senior economist at Interactive Brokers. However, he notes that "strengthening confidence in a solid economy is countering those concerns."
JOLTS comes in higher than expected
One such sign of a stable economy came in the form of this morning's Job Openings and Labor Turnover Survey (JOLTS), which showed 7.6 million job openings in April — the highest level since May 2024 and more than economists expected.
The report from the Bureau of Labor Statistics (BLS) also showed that hires and separations both declined by roughly 400,000 in April.
"The sharp jump in job openings, combined with declining separations, points to robust employer demand for labor," write Raymond James economists. "This reinforces our view that the labor market is on track for further strength this year following last year's weakness."
The JOLTS data arrived ahead of this Friday's release of the May jobs report, which is expected to show the U.S. added between 75,000 and 85,000 new jobs last month.
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