Jensen Huang Blesses Marvell: 8 Key Items Shaping the Stock Market Tuesday

These are the early headlines and other items poised to influence the market at the start of trading Tuesday. As we share this collection of market drivers, futures point to modest decline when U.S. equity markets open.

1. Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday in what would amount to a limited de-escalation of a conflict that has ‌killed thousands of people and inflamed the broader U.S.-Israeli war with Iran. According to Lebanon’s embassy in Washington, the agreement would not end the conflict in that country. But it calls for Israel to refrain from strikes on Beirut and its suburbs controlled by Hezbollah, while the Iran-aligned group would halt its attacks on Israel. (Reuters) A senior Iranian military officer said Tuesday that a resumption of hostilities with the United States was inevitable, as negotiations between Tehran and Washington appeared to stall. (CBS News)

Tensions appear to be back on the rise, and that will keep us on the sidelines near-term, especially with the S&P 500 and Nasdaq Composite pushing deeper into overbought territory with last night’s market close.

2. Hewlett Packard Enterprise shares soared 37 per cent after the supplier of data centre equipment boosted its 2026 revenue outlook amid booming demand for AI infrastructure. The group said on Monday that it expected its sales to jump 29 per cent to 33 per cent in its 2026 financial year, up from the 17 per cent to 22 per cent range it predicted only in March. HPE said it was now on track to meet its long-term financial targets for 2028 two years ahead of schedule… HPE said on Monday that its sales rose 40 per cent in the quarter to April 30 to $10.7bn, exceeding Wall Street forecasts of $9.8bn, according to Visible Alpha. It said it expects revenue of $11.5bn-$12.1bn in the current quarter, also better than the $10.9bn forecast by analysts. (FT)

Following Dell’s (DELL) upsized guidance last week, Hewlett Packard Enterprise’s (HPE) results are another confirmation for the AI and data center market and supporting infrastructure. On the earnings call last night management shared that the following:

“Demand was even stronger than revenue growth. Orders more than doubled, significantly outpacing revenue, resulting in a record company backlog. Customer investments in agentic AI and AI inferencing accelerated.“

3. Google parent Alphabet Inc. is raising $80 billion through a package of equity offerings, including an investment deal with Berkshire Hathaway Inc., as the company races to fund its ambitious artificial intelligence spending plans. The undertaking includes a $40 billion so-called at-the-market program to sell shares from time to time beginning in the third quarter, according to a statement Monday. The company will also offer $30 billion in underwritten offerings of shares and mandatory convertible preferred stock, as well as the $10 billion deal with Berkshire. (Bloomberg)

On the one hand, we should not be surprised that Alphabet (GOOGL) is looking to tap the public markets to help fund its capital spending plan following the more than doubling in the company’s shares off their April 2025 low. Recall that in April of this year, the company revised its capital expenditure forecast this year to between $180 billion and $190 billion, up from its previous estimate of $175 billion to $185 billion, and the $91.4 billion spent in 2025.

More than likely this will re-ignite questions around the significant increase in spending, which in our view is going to be a multi-year event, and the impact on margins and bottom-line performance. But a vote from Berkshire supports the long-term view tied to monetizing that investment as incremental AI and data capacity is chewed up as adoption and usage levels climb.

4. Marvell Technology’s shares surged more than 24% in premarket trading on ‌Tuesday after Nvidia CEO Jensen Huang called the chipmaker the next “trillion-dollar company.”… The surge in AI adoption has fueled demand for specialized chips, which ⁠along with Marvell’s interconnect technologies, play a critical role in advanced data centers by linking thousands of processors used to ⁠train and run AI models. (Reuters)

Talk about a vote of confidence for the Pro Portfolio’s position in Marvell (MRVL), especially since Huang called out the need for networking infrastructure to connect data centers to power AI data centers. Essentially Huang flagged data center connectivity as the next major bottleneck to AI growth. That has been one of our key reasons for being long MRVL shares, and we’ll have more to say on this later today.

While some will point out that Huang is talking Nvidia’s (NVDA) investment portfolio given its position in Marvell, let’s not forget, Broadcom (AVGO), which reports after tomorrow night’s market close, also participates in the networking market as well as in the AI & data center and custom AI silicon spaces.

5. In just the past couple of days, Berkshire Hathaway announced that it’s buying home builder Taylor Morrison for $8.5 billion and Barry Diller’s People Inc. is offering $18 billion for casino stalwart MGM Resorts International. And one data expert, Mergermarket’s Lucinda Guthrie, thinks the M&A party will go on for a while. The Berkshires of the world—mega-companies with lots of cash and no debt—are looking to gobble up their smaller rivals, Guthrie told Barron’s. There is “a hunt for scale from large-caps” that want to both cut costs and find new ways to grow, said Guthrie, who heads the capital markets data provider. Also circling are companies that can use their surging shares as currency for deals. (Barron’s)

We knew M&A activity was poised to accelerate under the Trump administration, and it has been a nice tailwind for the Portfolio’s position in Morgan Stanley (MS) and Bank of America (BAC). To the positive comments from Guthrie above, Goldman Sachs (GS) COO John Waldron noted M&A activity is strong and has the potential to set a new record. Backing up Guthrie’s comments, Waldron put some figures around the size of corporate M&A volume, up ~62% year over year. He also sees that strength continuing as companies seek to increase their scale in an industry they’re already strong in, while others seek to shed operations that aren’t core to their main business.

Paired with what is expected to be a robust summer and H2 2026 for IPOs (see below for more on that), it’s looking like we will need to once again revisit our BAC and MS price targets.

6. Anthropic PBC has confidentially submitted draft paperwork for a public listing, potentially leapfrogging longtime rival OpenAI in the race toward a Wall Street debut as soon as this fall. The company expects to post $10.9 billion in revenue for the second quarter, more than doubling from the prior three-month period, Bloomberg News has reported. Anthropic is also on pace for its first profitable quarter. The company has told investors that its annualized run rate revenue will surpass $50 billion by the end of June, people familiar with the matter said. Anthropic’s run rate, a metric that projects full-year revenue based on sales from a shorter period, was $4 billion in July of last year. (Bloomberg)

We’ll get more details and granularity when Anthropic’s S-1 filing becomes public, but those revenue figures go a long, long way to framing the dollars attached to AI adoption and usage. The filing should also give insight into Anthropic’s capital spending levels and key relationships, something we’ll want to bear in mind as the company begins the eventual IPO roadshow.

7. Economic data today per TipRanks: LMI Logistics Managers Index (May), JOLTS Job Openings & Quit (April).

8. Companies reporting today per TipRanks: AM – Dollar General (DG), Signet Jewelers (SIG), Victoria’s Secret (VSCO). PM – Palo Alto Networks (PANW), Ulta Beauty (ULTA).