US Stocks Surge to New Highs on AI Economic Strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2026
0mins
Stocks swung higher to new records on Tuesday as more strength from the AI economy offset the ongoing impasse between the U.S. and Iran. Chip producers and companies in the AI infrastructure space extended the momentum that has carried equity indices this year, including Broadcom, which advanced ahead of the company's earnings report due tomorrow.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Alphabetis looking to raise, including an investment from Berkshire Hathaway, to fund expansion of its AI infrastructureHP Enterpriseshares surged after the company gave an annualciting massive growth in demand for its servers and networking productsDollar Generalreportedand raised its FY26 EPS viewMarvellis set to be theNvidiaCEO Jensen Huang saidPresident Trump signed angranting the federal government oversight of AI models2. WALL STREET CALLS:Meta Platformsto Buy from Neutral at AreteWedbushTripAdvisorto Outperform on "underappreciated catalysts"Intuitto Sell at Goldman SachsNubankto Underperform at BofAPiper SandlerFulcrum to Underweight after sickle cell development stopped3. AROUND THE WEB:Tencentis close to launching an AI agent for WeChat, FT saysArmCEO Rene Haas said the U.S. will have difficulty blocking the export of CPUs to China because of their widespread use, Reuters reportsA merger between Estee Lauderand Jean Paul Gaultier-owner Puigfailed to go through due to the price tag of the transaction, but the company was still open to acquisitions if it made financial sense, Reuters saysGE Vernovawas denied its request for a court to reconsider a ruling blocking the company from ending its contract for the Vineyard Wind 1 offshore wind project, Renewables Now reportsNvidiaCEO Jensen Huang told the Computex conference in Taiwan that Anthropic, OpenAI and SpaceX are among the first big users of its upcoming microprocessor, Bloomberg says4. MOVERS:Legend Biotechrose after presentingfor LB2501 at the EHA CongressSTMicroelectronicsrises in New York after increasing its FY26 data center review guidancehttps://pro.thefly.com/STMVerra Mobilitydeclined afterCEO David Roberts will step downCelcuityfell afterfrom its PIK3CA mutant cohort of the Phase 3 VIKTORIA-1 clinical trial of gedatolisibXometryclosed lower after announcing apriced at $855. EARNINGS/GUIDANCE:Signet Jewelersreportedand narrowed its guidance for FY27Donaldsonreported, with EPS and revenue beating consensusVictoria's Secretreported, with CEO Hillary Super commenting on "a very strong start to 2026"Oddityreported, with EPS missing consensusAveannafor FY26INDEXES:The Dow rose 228.91, or 0.45%, to 51,307.79, the Nasdaq gained 7.09, or 0.026%, to 27,093.90, and the S&P 500 advanced 9.82, or 0.13%, to 7,609.78.
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Analyst Views on HPE
Wall Street analysts forecast HPE stock price to fall
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 41.230
Low
21.00
Averages
27.13
High
31.00
Current: 41.230
Low
21.00
Averages
27.13
High
31.00
About HPE
Hewlett Packard Enterprise Company is a global technology company focused on developing intelligent solutions that allow customers to capture, analyze and act upon data from edge-to-cloud. The Cloud & AI segment includes server and storage offerings. The Cloud & AI server portfolio includes general-purpose servers for multi-workload computing and workload-optimized servers for applications, and integrated systems designed to address high-performance computing and supercomputing (including exascale applications), AI, data analytics, and transaction processing workloads for government and commercial customers. The Networking segment develops and sells high-performance network and security products and services. The Corporate Investments and Other segments include the advisory and professional services business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Optimistic Outlook for Technology Solutions Industry
- Industry Trend Analysis: The integrated technology solutions sector is experiencing enhanced data management capabilities and increased demand for modern application development, driving the need for comprehensive solutions that are expected to accelerate digital transformation for enterprises.
- Multi-Cloud Model Adoption: The robust adoption of the multi-cloud model by enterprises allows industry participants to optimize resource utilization, fostering growth in cloud and virtual technologies, particularly showcasing significant potential in emerging markets.
- Supply Chain Bottleneck Challenges: Despite facing ongoing supply chain bottlenecks and delays in customer acceptance of new products leading to order backlogs, the overall industry's earnings outlook remains optimistic, with analysts holding a positive view on future earnings growth.
- Semiconductor Shortage Impact: The ongoing semiconductor chip shortage poses significant challenges for the industry's prospects, particularly against the backdrop of reduced spending on data center systems, requiring companies to navigate complex operational transitions amid supply chain disruptions.
See More
Dell Technologies Sees Strong Growth in AI Infrastructure
- Record Revenue: Dell Technologies' Infrastructure Solutions Group generated $29 billion in revenue in Q1 FY2027, marking a 181% year-over-year increase, with operating income soaring 206% to $3.1 billion, highlighting robust demand for AI infrastructure alongside traditional servers.
- Surge in AI Orders: The company booked a staggering $24.4 billion in AI orders during the first quarter, resulting in a record AI backlog of $51.3 billion, prompting management to raise FY2027 AI server revenue guidance to $60 billion, reflecting strong market demand for AI solutions.
- Product Innovation and Partnerships: Dell is expanding its AI Factory ecosystem with partners like NVIDIA and Google Cloud, launching new offerings such as Dell PowerRack and 18th-generation PowerEdge servers, positioning itself as a full-stack AI infrastructure provider to meet customer preferences for integrated solutions.
- Optimistic Market Outlook: Dell expects revenues between $165 billion and $169 billion for FY2027, with non-GAAP earnings guidance of $17.90 per share, demonstrating strong confidence in sustained demand driven by enterprise infrastructure modernization and the shift towards production-ready AI solutions.
See More
2026 Stock Market Review and Outlook
- Market Performance Review: As of 2026, the S&P 500 has risen by 8.7%, translating to an annualized total return nearing 20%, indicating that the market remains robust despite recent volatility, reflecting investor confidence in economic recovery.
- Internal Structural Anomalies: Despite the overall positive market performance, the S&P 500 experienced five consecutive days of decline last week, while more components were up than down, a phenomenon not seen since 2000, suggesting potential underlying risks in the market.
- AI Theme Dependency: The market's increasing reliance on AI capital expenditures has led to many investment factors, such as volatility and asset growth, being dominated by AI, indicating a sustained investor focus on AI-related stocks while raising concerns about market balance.
- Future Outlook and Risks: Although the market is making progress in identifying opportunities and risks, observers note that excessive optimism and high valuations in leveraged semiconductor stocks could lead to market corrections, especially against the backdrop of rising margin debt, necessitating cautious observation of future market trends.
See More
U.S. Power Gap Projected to Reach 19 GW by 2028
- Power Gap Warning: HPE CEO Antonio Neri highlighted at the 2026 Discover Summit that the U.S. is projected to face a 19 GW power gap by 2028, enough to power approximately 16 million homes, emphasizing the urgency of electricity supply, particularly as data centers could account for nearly half of U.S. electricity demand.
- Bloom Energy Contract Growth: Bloom Energy has secured approximately $7.65 billion in data center contracts in a short period, demonstrating strong demand in the rapidly growing power market, especially as its modular fuel cell systems can be deployed in about 90 days, significantly reducing power supply timelines.
- Strong Financial Performance: Bloom Energy's Q1 revenue surged 130% year-over-year to $751 million, with product revenue soaring 208%, while the company raised its full-year 2026 guidance to $3.4 billion to $3.8 billion, showcasing its market potential amid the power shortage backdrop.
- Strategic Partnership Agreements: Bloom Energy expanded its service agreement with Oracle to support up to 2.8 GW of capacity, with 1.2 GW already contracted, and signed a 20-year, $2.65 billion agreement with American Electric Power, further solidifying its market position in AI infrastructure.
See More
US Stocks Decline Amid AI Spending Concerns
- Market Decline: Major US stock indices fell on June 23 due to a sharp sell-off in semiconductor and AI stocks, reflecting growing investor anxiety over costly, debt-funded AI spending, which may undermine overall market confidence.
- Attraction of Steady Stocks: In the current market environment, steady dividend-growth stocks are seen as more appealing than high-beta growth stocks, as their consistent dividend records indicate financial health and cash flow resilience, helping to mitigate economic uncertainty.
- Selected Dividend Stocks: Analysts have recommended three dividend growth stocks—Dell Technologies, Hewlett Packard, and Taiwan Semiconductor—these companies not only possess mature business models but also provide downside protection amid market volatility, attracting long-term investors.
- Strong Financial Metrics: Dell Technologies is projected to see a 47.4% year-over-year revenue increase for fiscal 2026, while Hewlett Packard and Taiwan Semiconductor are expected to grow revenues by 31.3% and 32.2%, respectively, highlighting their ongoing profitability and cash flow growth potential.
See More
Schneider Electric Launches Industrial Automation Modernization as a Service
- Service Innovation: Schneider Electric's launch of the 'Industrial Automation Modernization as a Service' combines EcoStruxure™ Automation Expert with HPE SimpliVity hybrid cloud infrastructure, enabling industrial organizations to modernize incrementally without disrupting production, significantly reducing the risks and costs associated with large-scale infrastructure replacement.
- Cost Transformation: By shifting capital expenditure to consumption-based operational expenditure, companies can achieve more stable financial management, with an expectation that 70% of industrial firms will plan to virtualize automation by 2030, thereby enhancing operational efficiency and reducing labor costs.
- Rapid Value Realization: The new service allows organizations to bring products to market faster, with an anticipated 50% reduction in time-to-market and up to 60% reduction in commissioning time through templated, repeatable deployments, accelerating business growth.
- Security and Energy Optimization: Unified cloud governance enforces consistent cybersecurity policies across all sites, while AI-driven optimization has demonstrated up to 40% energy reduction in intensive operations, enhancing overall operational efficiency and sustainability.
See More
Optimistic Outlook for Technology Solutions Industry
- Industry Trend Analysis: The integrated technology solutions sector is experiencing enhanced data management capabilities and increased demand for modern application development, driving the need for comprehensive solutions that are expected to accelerate digital transformation for enterprises.
- Multi-Cloud Model Adoption: The robust adoption of the multi-cloud model by enterprises allows industry participants to optimize resource utilization, fostering growth in cloud and virtual technologies, particularly showcasing significant potential in emerging markets.
- Supply Chain Bottleneck Challenges: Despite facing ongoing supply chain bottlenecks and delays in customer acceptance of new products leading to order backlogs, the overall industry's earnings outlook remains optimistic, with analysts holding a positive view on future earnings growth.
- Semiconductor Shortage Impact: The ongoing semiconductor chip shortage poses significant challenges for the industry's prospects, particularly against the backdrop of reduced spending on data center systems, requiring companies to navigate complex operational transitions amid supply chain disruptions.
See More
Dell Technologies Sees Strong Growth in AI Infrastructure
- Record Revenue: Dell Technologies' Infrastructure Solutions Group generated $29 billion in revenue in Q1 FY2027, marking a 181% year-over-year increase, with operating income soaring 206% to $3.1 billion, highlighting robust demand for AI infrastructure alongside traditional servers.
- Surge in AI Orders: The company booked a staggering $24.4 billion in AI orders during the first quarter, resulting in a record AI backlog of $51.3 billion, prompting management to raise FY2027 AI server revenue guidance to $60 billion, reflecting strong market demand for AI solutions.
- Product Innovation and Partnerships: Dell is expanding its AI Factory ecosystem with partners like NVIDIA and Google Cloud, launching new offerings such as Dell PowerRack and 18th-generation PowerEdge servers, positioning itself as a full-stack AI infrastructure provider to meet customer preferences for integrated solutions.
- Optimistic Market Outlook: Dell expects revenues between $165 billion and $169 billion for FY2027, with non-GAAP earnings guidance of $17.90 per share, demonstrating strong confidence in sustained demand driven by enterprise infrastructure modernization and the shift towards production-ready AI solutions.
See More
2026 Stock Market Review and Outlook
- Market Performance Review: As of 2026, the S&P 500 has risen by 8.7%, translating to an annualized total return nearing 20%, indicating that the market remains robust despite recent volatility, reflecting investor confidence in economic recovery.
- Internal Structural Anomalies: Despite the overall positive market performance, the S&P 500 experienced five consecutive days of decline last week, while more components were up than down, a phenomenon not seen since 2000, suggesting potential underlying risks in the market.
- AI Theme Dependency: The market's increasing reliance on AI capital expenditures has led to many investment factors, such as volatility and asset growth, being dominated by AI, indicating a sustained investor focus on AI-related stocks while raising concerns about market balance.
- Future Outlook and Risks: Although the market is making progress in identifying opportunities and risks, observers note that excessive optimism and high valuations in leveraged semiconductor stocks could lead to market corrections, especially against the backdrop of rising margin debt, necessitating cautious observation of future market trends.
See More
U.S. Power Gap Projected to Reach 19 GW by 2028
- Power Gap Warning: HPE CEO Antonio Neri highlighted at the 2026 Discover Summit that the U.S. is projected to face a 19 GW power gap by 2028, enough to power approximately 16 million homes, emphasizing the urgency of electricity supply, particularly as data centers could account for nearly half of U.S. electricity demand.
- Bloom Energy Contract Growth: Bloom Energy has secured approximately $7.65 billion in data center contracts in a short period, demonstrating strong demand in the rapidly growing power market, especially as its modular fuel cell systems can be deployed in about 90 days, significantly reducing power supply timelines.
- Strong Financial Performance: Bloom Energy's Q1 revenue surged 130% year-over-year to $751 million, with product revenue soaring 208%, while the company raised its full-year 2026 guidance to $3.4 billion to $3.8 billion, showcasing its market potential amid the power shortage backdrop.
- Strategic Partnership Agreements: Bloom Energy expanded its service agreement with Oracle to support up to 2.8 GW of capacity, with 1.2 GW already contracted, and signed a 20-year, $2.65 billion agreement with American Electric Power, further solidifying its market position in AI infrastructure.
See More
US Stocks Decline Amid AI Spending Concerns
- Market Decline: Major US stock indices fell on June 23 due to a sharp sell-off in semiconductor and AI stocks, reflecting growing investor anxiety over costly, debt-funded AI spending, which may undermine overall market confidence.
- Attraction of Steady Stocks: In the current market environment, steady dividend-growth stocks are seen as more appealing than high-beta growth stocks, as their consistent dividend records indicate financial health and cash flow resilience, helping to mitigate economic uncertainty.
- Selected Dividend Stocks: Analysts have recommended three dividend growth stocks—Dell Technologies, Hewlett Packard, and Taiwan Semiconductor—these companies not only possess mature business models but also provide downside protection amid market volatility, attracting long-term investors.
- Strong Financial Metrics: Dell Technologies is projected to see a 47.4% year-over-year revenue increase for fiscal 2026, while Hewlett Packard and Taiwan Semiconductor are expected to grow revenues by 31.3% and 32.2%, respectively, highlighting their ongoing profitability and cash flow growth potential.
See More
Schneider Electric Launches Industrial Automation Modernization as a Service
- Service Innovation: Schneider Electric's launch of the 'Industrial Automation Modernization as a Service' combines EcoStruxure™ Automation Expert with HPE SimpliVity hybrid cloud infrastructure, enabling industrial organizations to modernize incrementally without disrupting production, significantly reducing the risks and costs associated with large-scale infrastructure replacement.
- Cost Transformation: By shifting capital expenditure to consumption-based operational expenditure, companies can achieve more stable financial management, with an expectation that 70% of industrial firms will plan to virtualize automation by 2030, thereby enhancing operational efficiency and reducing labor costs.
- Rapid Value Realization: The new service allows organizations to bring products to market faster, with an anticipated 50% reduction in time-to-market and up to 60% reduction in commissioning time through templated, repeatable deployments, accelerating business growth.
- Security and Energy Optimization: Unified cloud governance enforces consistent cybersecurity policies across all sites, while AI-driven optimization has demonstrated up to 40% energy reduction in intensive operations, enhancing overall operational efficiency and sustainability.
See More
