Alphabet's $80B Equity Raise Rattles Tech; HPE Surges

U.S. stock index futures traded little changed as investors assessed Alphabet's ($GOOGL) massive capital raise for AI infrastructure. S&P 500 futures edged higher by 0.2% while Nasdaq-100 futures advanced 0.3% on stronger global manufacturing data. Markets fell from record highs as the search engine and cloud computing company's $80 billion equity issuance reignited concerns about Big Tech's AI spending plans entering a more capital-hungry phase.

Alphabet ($GOOGL) announced it would issue $80 billion in equity to fund its AI infrastructure buildout, including $10 billion of stock to Berkshire Hathaway at a discount. The move represents less than 2% of Alphabet's $4.6 trillion market capitalization but sparked dilution fears among investors. Retail sentiment for $GOOGL remained bearish as the stock dropped in premarket trading. Hargreaves Lansdown analyst Matt Britzman noted the capital raise signals the AI arms race is moving into a more capital-hungry phase. Meanwhile, Anthropic has confidentially submitted a draft S-1 registration as the AI company's valuation nears $1 trillion, taking its first formal step toward a public listing.

Hewlett Packard Enterprise ($HPE) beat Q2 estimates with record revenue of $10.7B, up 40% year-over-year. Driven by AI and networking demand, $HPE raised full-year guidance above expectations, sending its stock up over 30% in after-hours trading. Software stocks extended their rally in afternoon trading, with shares of Nutanix, nCino, and DoubleVerify rising sharply in one of the sharpest sector reversals of 2026. Salesforce ($CRM) rose again as large enterprise software companies saw relief following positive remarks about the future of software from Nvidia's Jensen Huang, while the company made an announcement in France. Rackspace Technology ($RXT) announced a memorandum of understanding with $AMD to integrate Instinct GPUs and EPYC CPUs into a fully managed enterprise AI cloud, signaling a deeper focus on regulated, higher-value cloud and AI services.

SK Hynix plans to double its memory chip capacity over the coming half-decade in a major expansion that should help ease a global shortage of an essential component of AI. Marvell Technology ($MRVL) stock closed up 7% at $219.43, giving it a market capitalization of around $192 billion after getting a big endorsement from Nvidia CEO Jensen Huang. Speaking at the Computex conference in Taiwan alongside Marvell CEO Matt Murphy, Huang suggested $MRVL shares could achieve a market value of more than $1 trillion. Nvidia's Jensen Huang announced the company's new Vera platform has unlocked a $200 billion market opportunity the business hasn't gone after before. Micron was valued at around $100 billion a year ago and has now joined the latest $1 trillion stock club.

WeRide and Uber Technologies ($UBER) announced plans to launch Spain's first commercial Robotaxi pilot in the Region of Madrid, marking the companies' first joint entry into the European market. The service is expected to begin public operations later this year via the Uber app in partnership with the Madrid Regional Government. This represents a significant expansion for autonomous driving technology into the European market for both companies.

Investors await upcoming earnings reports including Lululemon Athletica's June 4 results, with analysts appearing to brace for bad news according to market commentary. The AI infrastructure buildout continues to dominate sector focus as companies balance capital allocation between growth investments and shareholder returns. Regulatory developments surrounding AI spending and enterprise adoption patterns will remain key drivers for tech sector performance in the coming weeks.