Stocks were largely unchanged on Tuesday as traders continue monitoring the latest developments regarding technological companies leading indexes and geopolitical tensions.
The S&P 500 inched higher, rising 0.13% and clocking in at 7,609.78 points, while the tech-heavy Nasdaq Composite gained 0.03%.
The tech sector dominated the headlines in the session. Alphabet dropped 2% after the company said it will seek to raise $80 billion from stock sales to fund AI projects.
The fundraising effort comes as Alphabet races to build the computing infrastructure needed to meet soaring demand for AI products across its Google Cloud business, enterprise services, and consumer applications. The company said the capital raise will include a $10 billion investment from Berkshire Hathaway.
According to Reuters, Alphabet plans to raise $30 billion through public equity offerings, while another $40 billion will be raised through an at-the-market stock sale program expected to launch later this year. The remaining $10 billion will come from Berkshire Hathaway through a private placement of Alphabet shares.
Marvell Technology stood out on Tuesday, jumping more than 30% after Nvidia Chief Executive Jensen Huang described the semiconductor company as the "next trillion-dollar company."
The remarks took place during an onstage discussion between Huang and Marvell CEO Matt Murphy at Computex in Taipei, where Huang praised the company's networking and connectivity technologies, according to CNBC.
Huang said connectivity has become a critical component of modern AI data centers, where computing workloads are distributed across thousands of processors that must continuously exchange massive amounts of data. The Nvidia chief said Marvell's products help make those systems possible.
Marvell designs semiconductor and networking products used in cloud computing, AI systems, enterprise networking, 5G telecommunications networks and automotive applications. The company has emerged as a key beneficiary of the industry's race to build the infrastructure required to support increasingly powerful AI models.
The surge came less than a week after Marvell reported stronger-than-expected fiscal first-quarter results. The company posted revenue of $2.4 billion and forecast continued growth driven by demand from its data center business, according to Reuters. Marvell has increasingly relied on AI-related revenue as cloud providers expand their computing capacity to support generative AI applications.
There were no concrete developments regarding talks between the U.S. and Iran to end the war. Tehran is seeking economic relief from the U.S. without making major nuclear concessions, according to Reuters.
The outlet went on to note that while Iranian leadership behaves like it could maintain the current scenario indefinitely, seeking to exert pressure on the global economy by maintaining the blockade of the Strait of Hormuz, internal conditions are also deteriorating.
